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MSE News: Santander 123 rate to be slashed to 1.5%

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  • badger09
    badger09 Posts: 11,286 Forumite
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    Is it possible to switch the 123 current account to the lite account without losing the benefit of paying into the monthly saver?

    Yes ...................
  • VT82
    VT82 Posts: 1,079 Forumite
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    Really proper annoyed that they chose 1.5% instead of 2%. Ignoring the 1/2/3 symbolism offends my aesthetic sensitibilities for starters, and they fact that they probably have the disingenuous 'Bank Rate halved so we halved our rate' co ck and bull argument in their back pocket also riles me.

    My only cashback is about 40p a month on a mobile phone bill as all our household bills go out of a Halifax joint account, so I factor the £5 fee in full. At 2% I would have stayed, at 1.5%, I'll stick it in my Flexclusive ISA at 1.3% (including topping my waithdrawals from this year back up) for now. I know at some point in the future 1.5% even after fees will probably be a fair bit better than I can get on some of my savings, but for now, I'm so cross about the idea of paying £5 a month for the privilege of having a very mediocre savings account that I am going to have to ditch it for my own peace of mind :mad:
  • xylophone
    xylophone Posts: 44,766 Forumite
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    Santander's specious arguments annoy me as much as the crocodile tears of Carney and Haldane - are savers supposed to be comforted by "I feel your pain....":mad:
  • Nationwide8
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    Well,if any other bank wants to attract business all they have to do is copy the 1-2-3 account and have a lower fee and/or higher interest...people would leave Santander in droves.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    badger09 wrote: »
    Hope that doesn't take you over your PSA gadgetmind:cool:

    The loan is actually from my wife and she doesn't use her full personal allowance (part time, low wage) so this £2k(ish) pa won't attract tax but will have to be declared.

    Yes, I thought this through when writing promissory note!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • moneypenny2k
    moneypenny2k Posts: 1,121 Forumite
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    Well,if any other bank wants to attract business all they have to do is copy the 1-2-3 account and have a lower fee and/or higher interest...people would leave Santander in droves.

    A brightening thought on a sombre day. Fingers crossed.
  • Graham1
    Graham1 Posts: 445 Forumite
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    It's a good idea to choose which is the optimum date to close or downgrade according to which day of the month you are paid the interest. With the change taking place on 01-Nov any interest you receive in November will be part at the higher rate and part at the lower rate so it might pay to hold off closing or downgrading until just after your interest payment date in November.
  • eskbanker
    eskbanker Posts: 31,860 Forumite
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    Graham1 wrote: »
    It's a good idea to choose which is the optimum date to close or downgrade according to which day of the month you are paid the interest. With the change taking place on 01-Nov any interest you receive in November will be part at the higher rate and part at the lower rate so it might pay to hold off closing or downgrading until just after your interest payment date in November.
    I don't believe so - my expectation would be that interest would be accrued as usual based on the prevailing rate each day and paid on a pro rata basis when closing. Therefore it doesn't matter which date you close, you'd still earn at 3% up to 1 November and 1.5% thereafter....
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    Well,if any other bank wants to attract business all they have to do is copy the 1-2-3 account and have a lower fee and/or higher interest...people would leave Santander in droves.

    And they'd make money how exactly?

    BTW, starting a bank is complex and costs a few bob, but people (or more likely groups of like-minded people) are free to do it if they see a business opportunity.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • badger09
    badger09 Posts: 11,286 Forumite
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    gadgetmind wrote: »
    The loan is actually from my wife and she doesn't use her full personal allowance (part time, low wage) so this £2k(ish) pa won't attract tax but will have to be declared.

    Yes, I thought this through when writing promissory note!

    I didn't doubt you'd have thought about it.

    Many people think the interest on these informal/semi formal loans isn't taxable. Many people are wrong:cool:
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