Santander considering dropping rate...

AndyPK

Well I wasn't expecting that! 1.5% !!!!

Well it was said it wouldn't last forever

schiff

AndyPK wrote: »

Well I wasn't expecting that! 1.5% !!!!

Well it was said it wouldn't last forever

Well, exactly!

3% interest on a current account! Hasn't that been a bit OTT? Compared with the rest anyway.

For how many years? About four I think, for me anyway.

Up to £20K too! Hasn't that been a bit OTT?

And two accounts allowed, three for a couple. That's very generous surely!

It's been fine while it lasted, but like all good things ...........

We can't really complain.

Flobberchops

Ouch! That had to be a literal punch-up between the marketing and accounting departments in Santander HQ. That 3% is one of the few things the Santander brand had going for it. I suppose they must be counting on all the other major banks reducing their rates proportionally to remain in the lead rates-wise.

Still, doesn't P2P look tempting these days...

fwor

schiff wrote: »

It's been fine while it lasted, but like all good things ...........

I personally don't see it as a "good thing" - more just a temporary incentive. To me it's always been a selling tool which Santander designed from the start as a way to "cure" the problem (for them) of resistance to paid-for bank accounts.

To them it's probably served its purpose, of getting thousands (possibly tens or even hundreds of thousands?) of people into the "habit" of paying for a bank account, and they hope that a significant proportion will be too lazy to switch when the bribe is taken away.

guitarman001

I don't know where to stash my cash now. Can't wrap it up for too long as may use it for a house soon-ish. This really sucks

Eco_Miser

guitarman001 wrote: »

I don't know where to stash my cash now. Can't wrap it up for too long as may use it for a house soon-ish. This really sucks

For now, leave it where it is, you'll still get 3% AER until the end of October, and by then 1.5% may be looking good for instant access.

Rather than complain about the fall in rate rejoice at how long you have been getting way over the rate available to institutional savers.

hoc

I am surprised they are keeping the limit so high and reducing the rate so much. This must now surely be the lowest rate among interest paying current accounts.

I get very little cashback having only essential utilities so for me the neat rate after fees will be closer to 1.2%. For now I will keep it as I have money in 1.2% savings account as best available after current accounts but even slightest further reduction by Santander I would close.

We were expecting a change but I struggle to follow the decision to only change the rate and not the fee or upper limit. Reducing from 20k to 10k or 5k with a smaller interest reduction I would have thought been better marketing. The fee I suspect is good stealth tactic for them but even without it 1.5% for an account sounds a bit rubbish. The existence of fee will also drive people to close accounts rather than just leave them inactive with a low balance.

I suppose this is now a cashback account to rival Natwest assuming the fee & interest combination works in your favour. If not for cashback, really no point at all.

techwatcher

Whether the Santander account remains worthwhile depends on what other banks choose to do with their interest-paying current accounts and their savings accounts.

1.5% may sound "a bit rubbish" now but come November it still may be competitive - time will tell.

schiff

fwor wrote: »

I personally don't see it as a "good thing" - more just a temporary incentive. To me it's always been a selling tool which Santander designed from the start as a way to "cure" the problem (for them) of resistance to paid-for bank accounts.

Good thing or incentive it's been very good for the savvy investors.

To them it's probably served its purpose, of getting thousands (possibly tens or even hundreds of thousands?) of people into the "habit" of paying for a bank account, and they hope that a significant proportion will be too lazy to switch when the bribe is taken away.

And those same savvy investors won't be falling for that, will they!


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fun4everyone

fwor wrote: »

I personally don't see it as a "good thing" - more just a temporary incentive. To me it's always been a selling tool which Santander designed from the start as a way to "cure" the problem (for them) of resistance to paid-for bank accounts.

To them it's probably served its purpose, of getting thousands (possibly tens or even hundreds of thousands?) of people into the "habit" of paying for a bank account, and they hope that a significant proportion will be too lazy to switch when the bribe is taken away.

Yeah agreed, banks pray for the day we all happily pay them to hold our money. Not happening in my opinion no matter how they approach the "problem" (to them).