Santander considering dropping rate...

Thrugelmir

adonis10 wrote: »

I ask because I'm at the stage where I've got about 50k in savings with 150k mortgage at 2.14% (joint with partner) and currently have around £800/month to save/invest/overpay mortgage, after all bills etc. Pretty much exhausted all the good rates in terms of current accounts.

Pension provision covered for both of you?

YorkshireBoy

foxathome wrote: »

The worse part is that it is still the best around.

It seems you took the easy option? (unless you've another £70K making more than this?...see below)

You could have been enjoying 3-5% AER (with no fees) by using more accounts, eg Nationwide, Lloyds, TSB, BoS, and Tesco...which would have held your £60K and another £10K besides. These would have been getting you an extra 33% return on your £60K savings...I'd assume very welcome in retirement?

These other accounts are still paying 3-5%, should you decide to jump/partially jump from Santander. Of course they could be trimmed down too in the future, but if they are they may not be cut by 50%. Time to put some work in?

bigadaj

And a few free trips to the cinema with lloyds club as well.

Better than bread and dripping.

adonis10

Thrugelmir wrote: »

Pension provision covered for both of you?

Me not so much as was a late starter, however am now getting 24% of my salary contributed (me 8%, e'er 16%) and oh is a teacher so her pension is good.

schiff

foxathome wrote: »

It's really bad for us pensioners who live on savings interest. We have three 1-2-3 accounts maxed out to £20k each. Last year before the monthly charge this was bringing us £1,800. (rounded up) In November with the monthly charge and the rate reduction to 1.5% we can look forward to a measly £720 (again rounded up).
The worse part is that it is still the best around. Looks like bread and dripping for us next year.

You may have to consider spending some of the £60K. You won't live for ever.

eskbanker

foxathome wrote: »

Looks like bread and dripping for us next year.

Maybe stop reinvesting those dividends and take some as cash?

ColdIron

Unlikely that savings are the only source of income. Pensioners tend to live on their pensions yes? 60K of savings after a lifetime of work is not a great deal of money

xylophone

can only go on what they said. They said they "live on savings interest". If they have a pension and at least £60,000, then the pleading poverty is even more insulting.

I don't think the OP was pleading poverty- the comments were slightly tongue in cheek?

That said, it is perfectly possible that pensioners supplement their pension income with interest from savings.

A couple with a BSP each would have a weekly income of around £240 a week which is a little over GPC level for a couple and is hardly luxury living?

Their savings would represent the security of an emergency fund - it would only need a requirement for a new boiler/ white goods/ car/ roof repair to blow quite a hole in such savings.

The interest on a lifetime's savings could well be their holiday/treats/small presents to family etc fund?

schiff

I think having savings, investing them well and profitably, keeping the pot getting bigger and bigger can be quite motivational, almost like a hobby, and when there is an attack on the means of keeping it getting bigger, it can have something of a spontaneous reaction. I think that's happened here.

I'm going to 'lose' £600 pa from November 1st on Santander accounts, I don't strictly 'need' the £600, but it did come as a shock!

2010

Celifein wrote: »

Maybe it's just how my brain works. Unless something is very clearly sarcasm, I tend to take it at face value.

The OP never said they would starve.

In fact it`s really only the very last sentence that you objected to.
Which was "Looks like bread and dripping for us next year".
This,to me, was clearly a tongue in cheek joke, to end their post.

Also against their username is a "newbie alert" sign.