Santander 123 rate to be cut to 1.5%

YorkshireBoy

1kevfp wrote: »

So they just used it as entrapment to get us all to buy a supermarket type loss leader ?

I'll quite happily subscribe to more "entrapment" like that which pays me 6 x base rate, and 2-3 times CPI/RPI, for 4 years.

1kevfp

Guess you were lucky getting in early, but not all of us have the same forsight, sorry their cuts are still not justifiable and should be quantified and accounted for otherwise the banking and finance industry will still get away with their underhanded tactics and make a mockery of the FCA ( regulated by a company that I used to be emplyoed by)

agentk

investments:j the only shares I hold now are ? Santander courtesy of the former Alliance Leicester ... :beer:[/QUOTE]

Which are now worth roughly half they were when a&l first demutalized :mad: Mind you we have had a few div's since then.:beer:

1kevfp

I'll drink some Rioja to that

YorkshireBoy

1kevfp wrote: »

Guess you were lucky getting in early...

I didn't though. I was very late to the Santander party, having first filled up the 4% & 5% current accounts (and the 3% 'clean' accounts) and making other investments generating more than the 3% Santander would pay me. As such, I've probably only had the account a couple of years.

But, its unlikely all your 3 accounts are sole(?), especially since you haven't had them long, so there must be 2 of you? You'll therefore rest safe in the knowledge that you have, for the time being anyway, another £70K making 3-5% AER outside of Santander? And if there is only one of you, you still have £30.5K making 3-5% AER outside of Santander?

So it's not all bad news.

Ballard

1kevfp wrote: »

Guess you were lucky getting in early, but not all of us have the same forsight, sorry their cuts are still not justifiable and should be quantified and accounted for otherwise the banking and finance industry will still get away with their underhanded tactics and make a mockery of the FCA ( regulated by a company that I used to be emplyoed by)

In what way aren't the cuts justifiable? They were paying 2.5% over base rate and will soon pay 1.25% over base. That's a massive cost to them and is unsustainable long term. It's also not underhand to pay relatively high interest rates for several years and then give a couple of months notice when they reduce them.

I don't know what you expect the regulator to do. You have full and immediate access to your money and can generally open accounts elsewhere within a few days.

enthusiasticsaver

Got my letter today informing us our Santander 123 is dropping interest rate to 1.5%. I did have 2 for a couple of years but moved one when they upped the fee to £5. Already got Nationwide Flex Direct (year is almost up so that is going down), TSB Classic, LLoyds Club, Tesco x2 and 4 regular savers.

We keep our emergency fund of £20k in our Santander 123 and as all our bills are paid from there so we get £8 cashback we will probably hang on to it. Not sure where else you can get 1.5% for that much money with instant access without opening a bunch of BOS accounts or extra joint ones so I am conceding defeat and accepting the best thing for us is to stick with the Santander123.

Nick_C

1kevfp wrote: »

... lucky I took my own financial advice when it came to endowments, pensions and investments:j the only shares I hold now are ? Santander

Well each to their own, but my investment portfolio has returned five times what Santander have given me on my 123 account.

I still think 123 is a good account though.

joe134

enthusiasticsaver wrote: »

Got my letter today informing us our Santander 123 is dropping interest rate to 1.5%. I did have 2 for a couple of years but moved one when they upped the fee to £5. Already got Nationwide Flex Direct (year is almost up so that is going down), TSB Classic, LLoyds Club, Tesco x2 and 4 regular savers.

We keep our emergency fund of £20k in our Santander 123 and as all our bills are paid from there so we get £8 cashback we will probably hang on to it. Not sure where else you can get 1.5% for that much money with instant access without opening a bunch of BOS accounts or extra joint ones so I am conceding defeat and accepting the best thing for us is to stick with the Santander123.

I think it's called, " Hobsons Choice".
Like you I have all the others, and without fixing more of my money, there isn't a great deal of options left to do.
Nearly all fixed deals have dropped accordingly, so we are, where we are, and, it's only going to get worse.:(.

Speculator

Closed one of my 123 a/cs yesterday before the next interest payment on the 3/9 to avoid the £5 fee.

Transferred all the money to 3 x Nationwide FlexDirect a/cs which I am hoping will pay 5%.