Santander 123 rate to be cut to 1.5%

Goldiegirl

Although it's 'mere speculation' at the moment, there's no smoke without fire.


I suspect the days of the high interest current accounts are beginning to draw to a close

Yorkshire_Pud

Maybe Santander are gauging the response to this leak before they do or don't act.

So threaten to leave in droves, complain etc and maybe they will just up the monthly fee to £10 a month.:o

teddysmum

The AOL website says that, following the Mail's report, it approached Santander who declined to comment; just saying that clients will get 60 days' notice of any change.


As 2% of £20000 is £400 and the monthly fee is £60pa, leaving £340, this works out at just 1.7% if there are no cashback DDs.


On £5000, the interest is reduced to £40; a mere 0.8%.

alternate

Even the mail story says they are only considering the change - I suspect they consider it all the time, wondering how much it is costing them vs money made from the customer base.

Could well happen but the headline is misleading and everyone taking it as fact already.

FOREVER21

teddysmum wrote: »

The AOL website says that, following the Mail's report, it approached Santander who declined to comment; just saying that clients will get 60 days' notice of any change.


As 2% of £20000 is £400 and the monthly fee is £60pa, leaving £340, this works out at just 1.7% if there are no cashback DDs.


On £5000, the interest is reduced to £40; a mere 0.8%.

Yes but 1.7% for an easy access account is still pretty good and I doubt if you will find an easy access account paying anything near that.

MARTYM8`

You do wonder how long we will have these high interest current accounts.

Clydesdale/Yorkshire have dropped their 2% current account direct.

Will TSB/Nationwide/BOS/Tesco/Lloyds and co drop their rates or will the regular saver products linked to HSBC/FD/M&S etc be scaled back too?

[Deleted User]

MARTYM8` wrote: »

You do wonder how long we will have these high interest current accounts.

Clydesdale/Yorkshire have dropped their 2% current account direct.

Will TSB/Nationwide/BOS/Tesco/Lloyds and co drop their rates or will the regular saver products linked to HSBC/FD/M&S etc be scaled back too?

At least the rates on the regular savers are fixed to the anniversary date of the account.

JGUK

I will have to rethink my balance in Santander, which is a shame.

So as someone stated above after fees and with no cash back DDs taken into consideration we're at roughly 1.7% if they go through with it ?

PeacefulWaters

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.

If you send a standing order from a 123 current account to the 3% regular saver its fine.

It's maths really. And understanding. And you've not really demonstrated either particularly well.

teddysmum

Deleted_User wrote: »

At least the rates on the regular savers are fixed to the anniversary date of the account.

Not all regular savers are at fixed rate. eg Nationwide's is fixed term but the rate is variable.