Santander 123 rate to be cut to 1.5%

Stompa

bxboards wrote: »

If I have a lump sum in Santander 123, it is paying 3% for the full year.

A regular saver paying 3%, only the first months payment gets the 'full' 3%.

To get close to the 123 returns, you need to be looking at 5% or 6% regular savers, not the 3% ones.

Yes, but that ignores any interest earned elsewhere prior to the funds reaching the regular saver.

bxboards

colsten wrote: »

A 3% regular saver will pay exactly 3% interest. Please stop feeding the myth that the interest rate of regular savers is lower than advertised.

Well its maths really.. if I have a 3k lump sum in a 123 account these are the maths:

With the my 3k in my 123 paying 3% in my lump sum I have: 3,091.25
In a 3% regular saver, paying in 250 a month, I have: 3,041.60

So in no way is a 3% regular saver a replacement for the 123's 3%, you will get about 50 pounds less over the year.

Paul_1977

Was always going to happen.

colsten

bxboards wrote: »

Well its maths really.. if I have a 3k lump sum in a 123 account these are the maths:

With the my 3k in my 123 paying 3% in my lump sum I have: 3,091.25
In a 3% regular saver, paying in 250 a month, I have: 3,041.60

So in no way is a 3% regular saver a replacement for the 123's 3%, you will get about 50 pounds less over the year.

Of course you will not get any interest on money that is not in an account. But that doesn't mean the interest rate of a Regular Saver is halved.

Nobody has suggested that a 3% regular saver is a 1:1 replacement for a Santander 123.

Previn

bxboards wrote: »

Well its maths really.. if I have a 3k lump sum in a 123 account these are the maths:

With the my 3k in my 123 paying 3% in my lump sum I have: 3,091.25
In a 3% regular saver, paying in 250 a month, I have: 3,041.60

So in no way is a 3% regular saver a replacement for the 123's 3%, you will get about 50 pounds less over the year.

What is happening to your money in the time its not in the regular saver? That money is also earning 3% so as a total you will get exactly the same in both scenarios, plus you can also top up your santander as the money goes into the reg save & earn more interest on top if you have additional cash around.

3% is 3% however you look at it, the rate doesn't change.
However, if you have the opportunity to get 4/5/6% in a regular saver you should always use that first. (Not allowing for cashback)

If you're saying its just maths then stick it a spreadsheet & work it out & come back with the results....

Kendall80

I just got a reply from Santander via instant message. Probably a stock response but thought i'd share.






Good Afternoon Mr Kendall,

Thank you for your email regarding recent speculations on possible changes to the 123 Current Account.
I can reassure you that these reports are mere speculation and that at Santander, we remain committed to our vision of helping people and businesses prosper. Our 123 Current Account is an important part of our current account range and there are no current plans to make any changes to this account. We will continue to offer competitive accounts which provide long term value to our primary and loyal customers.

badger09

Kendall80 wrote: »

I just got a reply from Santander via instant message. Probably a stock response but thought i'd share.






Good Afternoon Mr Kendall,

Thank you for your email regarding recent speculations on possible changes to the 123 Current Account.
I can reassure you that these reports are mere speculation and that at Santander, we remain committed to our vision of helping people and businesses prosper. Our 123 Current Account is an important part of our current account range and there are no current plans to make any changes to this account. We will continue to offer competitive accounts which provide long term value to our primary and loyal customers.

Spoilsport:p

xylophone

I can reassure you that these reports are mere speculation

That the forces of the moustached one would invade Poland was mere speculation....?

Weasel words?:eek:

Lorian

Kendall80 wrote: »

Thank you for your email regarding recent speculations on possible changes to the 123 Current Account.
I can reassure you that these reports are mere speculation and that at Santander, we remain committed to our vision of helping people and businesses prosper. Our 123 Current Account is an important part of our current account range and there are no current plans to make any changes to this account. We will continue to offer competitive accounts which provide long term value to our primary and loyal customers.

Probably announce tomorrow then

Kim_13

Continue to offer competitive accounts... basically we can't keep paying 3% then.

I do think it's bad they're doing this so close to the fee increase - it's only been 6 months. There is far too much blaming of Brexit (which I can see them doing) and it may well be sentiment rather than the mandate itself (which at this stage may not even be used) that does the damage.