Santander 123 rate to be cut to 1.5%

Speculator

adindas wrote: »

Open a new account will mean to start from the scratch and another credit check. You will never know, her application might not be successful ...

Just applied and successful.

She's applied for over 25 current accounts online since coming to the UK 16yrs ago and has never been rejected.

Only time she was rejected was when she first arrived in the UK. Halifax refused to open a current account for her (tried in branch on two separate occasions but computer said No.) so she ended up with a basic cash card a/c. However, since Lloyds took over Halifax, she has been able to open accounts at Halifax, Lloyds, TSB and all the other banks.

Consumerist

Speculator wrote: »

My wife has a 123 account with about £17k and a regular esaver account earning 5%.

I'll probably advise her to close the 123 and open an "Everyday Current" account so she continues to qualify for the 5% Regular esaver.

Just got to make sure there is at least £200 in the everyday current a/c one day before the Standing order is debited.

If your wife's balance is likely to stay in the £17k region, she might be just as well off to stay put.

Gross interest of ca. £255 pa - £60 pa fees leaves her with £195 pa net (assuming she pays no tax on savings interest) which works out at around 1.15% pa net she would need to get elsewhere.

Speculator

Consumerist wrote: »

If your wife's balance is likely to stay in the £17k region, she might be just as well off to stay put.

Gross interest of ca. £255 pa - £60 pa fees leaves her with £195 pa net (assuming she pays no tax on savings interest) which works out at around 1.15% pa net she would need to get elsewhere.

I am going to transfer the money to my 123 where it's going via SO to various Regular savings accounts. Lowest RS we have is 2.5% @ the Penrith. All the others pay above 3%. (YBS x 2, N&P x 4, Nationwide x 2, Leeds x 2, Santander x 2, Lloyds x 2, Coventry (formerly Stroud) x 2, Saffron ISA x 2 etc)

I will leave the rest in my 123 which I am keeping open.

Kernel_Sanders

https://en.wikipedia.org/wiki/Stroud_%26_Swindon_Building_Society

Speculator wrote: »

various Regular savings accounts. Lowest RS we have is 2.5% @ the Penrith. All the others pay above 3%. (YBS x 2, N&P x 4, Nationwide x 2, Leeds x 2, Santander x 2, Lloyds x 2, Coventry (formerly Stroud) x 2, Saffron ISA x 2 etc)

Are any of these due to decrease their rates later this Autumn like the Mansfield BS is? I'm not sure that Stroud BS became the Coventry; didn't it merge with the Swindon BS?

Kernel_Sanders

1kevfp wrote: »

If you are internet savvy the new intenet based Atom Bank has recently increased it max holding to £100k @ 2% per account you are covered by the governments FSCS up to £75k so a low risk,its in its infancy but gathering a lot of attention

Perhaps it might be wise to explain to the less savvy that there is no risk at all (at least to the capital) in putting £75000 in.

1kevfp

https://protected.fscs.org.uk/?gclid=Cj0KEQjwvIO_BRDt27qG3YX0w4wBEiQAsGu3efBwzvhQAg4Ye017m64y4JLrAut2kZPYItXRx8DBHm8aAunf8P8HAQ

Here is a link to the government Financial Services Compensation Scheme that covers losses on UK regulated ,non investment, regular savings for up to £75k per person per bank,building society etc

Speculator

Kernel_Sanders wrote: »

https://en.wikipedia.org/wiki/Stroud_%26_Swindon_Building_SocietyAre any of these due to decrease their rates later this Autumn like the Mansfield BS is? I'm not sure that Stroud BS became the Coventry; didn't it merge with the Swindon BS?

Apart from Penrith and and I think the Leeds, the remainder are fixed rate or have already announced their new rates in response to the BOE rate reduction.

harz99

Today saw my old 123 switch to a new Co-op account complete, so just the 45 day wait for £150 to arrive, then find another switch etc.

adindas

harz99 wrote: »

Today saw my old 123 switch to a new Co-op account complete, so just the 45 day wait for £150 to arrive, then find another switch etc.

Again another example how Santander has underestimated the number of people willing to vote on their own feet.

1kevfp

Well I like many have began my protest by closing at least one down and shoving the money into premium bonds for a 12 month risk free gamble. Also considering setting up 2 x F.D regular savings at 6% over 12 months. Mrs is a non taxpayer so it works out at 3.25% compounded

Was going to set up with Atom Bank but their 12 month fixed rate is now down to 1.40% :mad: