Santander dropping interest to 2%

saver861

I'm hearing Santander are dropping the top rate interest from 3% to 2% on their 123 current account. That with the hike from £2 to £5 for their current account makes this account somewhat less attractive now.

Trouble is, not many better alternatives?

[Deleted User]

There's an active discussion on this topic on the Banking and Budgeting board which you might find helpful.

Stubod

.'suppose it had to happen sometime...its be 3% for a while and must have attracted a lot of new business. As things go I will probably keep ours going on the basis of not a lot else any better for larger sums with minimum hassle....

megaginge

That's probably enough to make me move when my 12 month 6% saver matures ...

I moved to Santander just before the fee hike and have now seen a significant degradation in the product offering.

First direct/HSBC next methinks

hennerz

That's 1.7% after the fees, ignoring cashback from the credit card and/or bills.

Still pretty good on £20k.

talexuser

It seems probable if the base rate comes down to 0.25. Nevertheless if you are nearer the maximum allowed and have all the other current accounts it will still be worthwhile - instant access accounts now 1.25% max and probably coming down further. If only a few grand in Santander, dump and go to TSB or Nationwide Flex (while they last).

[Deleted User]

hennerz wrote: »

That's 1.7% after the fees, ignoring cashback from the credit card and/or bills.

Still pretty good on £20k.

And it's instant access. You wouldn't get that rate even on a 1 year fixed term savings bond at the moment.

YorkshireBoy

megaginge wrote: »

That's probably enough to make me move when my 12 month 6% saver matures ...

How come you get 6% when the rest of us have to make do with 5%?

First direct/HSBC next methinks

What rate do they pay on £1K, £3K, and £20K lump sums?...and the same question re cashback on household bills?...just so we can draw a like for like comparison.

veryintrigued

YorkshireBoy wrote: »

How come you get 6% when the rest of us have to make do with 5%?What rate do they pay on £1K, £3K, and £20K lump sums?...and the same question re cashback on household bills?...just so we can draw a like for like comparison.

AER missing.

:rotfl:

colsten

hennerz wrote: »

That's 1.7% after the fees, ignoring cashback from the credit card and/or bills.

Still pretty good on £20k.

If you count in cashback from the credit card, you also need to count in the monthly fee for the credit card.

Pincher

More and more people will be forced into the stock/bond market in search of yield.

It's that or try to be a prostitute when you are 70 years old.

Desperation is an entirely terrible thing.