Santander considering dropping rate...

zolablue25

Does the cut affect their 123 Mini accounts or are they keeping them at 3%? Was thinking of opening one for my daughter but only if they are keeping it at 3% on £2000.

xylophone

I have a 123 Account - what sticks in my craw is not so much that the rate has been cut as the size of the cut.

Cut to 2.75%? Very fair - even a cut to 2.5% or 2% at the limit.

But 1.5%? And on top of the 150% increase in the fee? They're "avin a larf"?

I think it'll be adios come November......:(

xylophone

£240 a week isn't luxury, but it's comfortable and certainly not starvation level, especially if you're also supplementing it with savings interest. If you've also paid off your mortgage, no longer need to commute regularly and receive the various pensioner perks (free bus pass, money toward winter heating bills, free TV licence, etc.), it's very comfortable.

But older people may no longer be up to DIY in house or garden - competent professional decorators have high charges and a few hours work in the garden will eat up a few hundred pounds over the summer.

Getting in a plumber or electrician will blow a hole in the budget.

And part time work may not be an option.

Under these circumstances, it is no wonder that pensioners of modest means aim for capital preservation.

xylophone

Does the cut affect their 123 Mini accounts or are they keeping them at 3%? Was thinking of opening one for my daughter but only if they are keeping it at 3% on £2000.

No change indicated at the moment.

http://www.santander.co.uk/uk/current-accounts/123-mini-accounts/123-mini-current-account?icid=php-ql1-123%20Mini-0815

Whereas for the adults....

http://www.santander.co.uk/uk/current-accounts/123-current-account

Andypandyboy

I had just gone to the trouble of opening two more 123 accounts and setting up the pre requisite DD's and now this cut....annoyed.com!

Like someone else said it is a really big one, much bigger than expected.

2010

Celifein wrote: »

Maybe I need a "my brain is not normal" sign on my posts?

---

or I can`t tell when someone is joking sign.;)

2010

Andypandyboy wrote: »

I had just gone to the trouble of opening two more 123 accounts and setting up the pre requisite DD's and now this cut....annoyed.com!

Like someone else said it is a really big one, much bigger than expected.

Come 1st November, 1.5% might seem like a good rate.

zolablue25

xylophone wrote: »

No change indicated at the moment.

http://www.santander.co.uk/uk/current-accounts/123-mini-accounts/123-mini-current-account?icid=php-ql1-123%20Mini-0815

Whereas for the adults....

http://www.santander.co.uk/uk/current-accounts/123-current-account

Thanks. I had already seen that but wondered whether there was a definite statement from Santander on it (I haven't seen one) rather than assuming no change when it could just be that their web team had overlooked it.

Rollinghome

xylophone wrote: »

I have a 123 Account - what sticks in my craw is not so much that the rate has been cut as the size of the cut.

Cut to 2.75%? Very fair - even a cut to 2.5% or 2% at the limit.

But 1.5%? And on top of the 150% increase in the fee? They're "avin a larf"?

I think it'll be adios come November......:(

I assume the rate paid was always intended as a simple loss-leader sales ploy. And a very successful one. They've gained huge publicity as the favourite account of MSE and the personal finance pages and pulled in thousands of new account-holders - the bulk of which may stay with them. They've used the 0.25% BOE cut as cover for what was always intended at some point.

The shrewd thing to do is to just take the loss-leaders while they're on offer, whether from banks or supermarkets, and move on when they aren't. It's only business so no hard feelings, just be as cynical as they are.

karlie88

Rollinghome wrote: »

They've gained huge publicity as the favourite account of MSE and the personal finance pages and pulled in thousands of new account-holders

More like millions...