Santander 123 rate to be cut to 1.5%

ashnojutsu

The interest rate cut has indeed prompted me to take 16.5k out of my 123 account and move it to higher-paying accounts (and earn switching bonuses at the same time). Once a better current account comes along, I will most defintely move the remainder out, as the small amount of cashback & large monthly fee does not justify it being open.
Of course, if you factor in mortgage and large utility bill cashback, it does at least pay for itself, and leaves a small profit leftover. All about how many DD's you have and their values really.

Sea_Shell

We've moved DH's money out into a higher rate account and switched to Halifax for £100. My sole account will probably go the same way, but it's being used as the 'float' for pension contributions and Regular savers, but once it's depleted, it's gone!!!

adindas

ashnojutsu wrote: »

The interest rate cut has indeed prompted me to take 16.5k out of my 123 account and move it to higher-paying accounts (and earn switching bonuses at the same time). Once a better current account comes along, I will most defintely move the remainder out, as the small amount of cashback & large monthly fee does not justify it being open.
Of course, if you factor in mortgage and large utility bill cashback, it does at least pay for itself, and leaves a small profit leftover. All about how many DD's you have and their values really.

Sea_Shell wrote: »

We've moved DH's money out into a higher rate account and switched to Halifax for £100. My sole account will probably go the same way, but it's being used as the 'float' for pension contributions and Regular savers, but once it's depleted, it's gone!!!

Akhh --- Other examples how Santander might have underestimated the number of people willing to move out their money when they decide to cut interest rate to 1.5% despite increase of fee previously.

People who get mortgage cashback in their Santander123 account might be better off to stay with Santander123. But I fully doubt if there are many people having Santander123 also have mortgage with Santander.

Santander Mortgage is hardly ever make on the top of the league based on the various well known comparison sites. So unless you have a certain arrangement with Santander such as Santander employee (?) there is no point to take Santander Mortgage if you could get a better deal anywhere else ...

1kevfp

As a Satander 😈 supposed "Select?" client I wrote to my "relationship" manager expressing my displeasure at the cuts and monthly fee involved , but just got back a poorly gramatically written reply essentially towing the party line, I do however believe Santander or an employee will be looking at this thread - whether it will make any diffrence though ?:(

Jeems

1kevfp wrote: »

As a Satander 😈 supposed "Select?" client I wrote to my "relationship" manager expressing my displeasure at the cuts and monthly fee involved , but just got back a poorly gramatically written reply essentially towing the party line, I do however believe Santander or an employee will be looking at this thread - whether it will make any diffrence though ?:(

I'm not quite sure what other response you expected, its not as if he was gonna say "I'll keep it at 3% for you cos you're special"

1kevfp

Jeems,

I do realise that so I found your reply patronising !

We have been discussing recently a possible Santander underestimate of dissatisfied clients - a bit like Camerons underestimation ?

adindas

1kevfp wrote: »

Jeems,

I do realise that so I found your reply patronising !

We have been discussing recently a possible Santander underestimate of dissatisfied clients - a bit like Camerons underestimation ?

1kevfp
The decision has been made, so It is extremely unlikely they will change their decision for whatever reason.

The best thing to do is the vote on your own feet. If you could move your money elsewhere even it will mean you will need to apply multiple current accounts and regular saver account.

In this thread alone there area already quite a few people have been doing so ....

Consumerist

I wonder to what extent other banks may also be watching this thread whilst they contemplate their reviews of their own accounts' benefits.

Nick_C

Consumerist wrote: »

I wonder to what extent other banks may also be watching this thread whilst they contemplate their reviews of their own accounts' benefits.

Well NatWest is offering a loss-making cashback scheme on DDs, similar to Santander. But as NatWest is a basket case bank that has managed to lose fourteen billion pounds in the last 5 years, they will probably not be overly concerned about making any changes. I'm just glad I don't have shares in NatWest. Oh. Wait a second ....

adindas

Nick_C wrote: »

Well NatWest is offering a loss-making cashback scheme on DDs, similar to Santander. But as NatWest is a basket case bank that has managed to lose fourteen billion pounds in the last 5 years, they will probably not be overly concerned about making any changes. I'm just glad I don't have shares in NatWest. Oh. Wait a second ....

BOS is offering the same scheme with Natwest. Earn 3% in Rewards on selected household bills paid by Direct Debit. How come this one is a loss-making business ?
http://personal.rbs.co.uk/personal/current-accounts/compare-current-accounts/reward-account.html
It is absolute nonsense to mention it is a loss-making business. If so why BOS is also offering the same scheme ??

Unless for people working for Santander, why should anyone else here care about loss-making cashback scheme on DDs from Santander competitors. It is not the business of MSEs member here to think about the loss making business of a bank. People are more interested in seeing whether they could get a better deal. In this case Natwest and BOS beats Santander for people aiming at cashback if they could generate a lot of cashback from DD.

Do you have evidence such as news, credible link, etc where you could demonstrate that Natwest and/or BOS cashback account is a lost making business ?? The intangible benefit of the account such as cross selling will need to be accounted.