Santander 123 interest rate going from 3% to 1.5%. Where to put my money now?

Diddle283

Hey guys!

Recieved a letter from Satander this morning stating that the interest rate on my 123 account will be cut to 1.5% from November. It seems it is no longer worth the £5 monthly fee for me as I use the account for savings only and it is constantly maxed at £20k.

Simple question, where is the best place to put this money from November?

thanks!

YorkshireBoy

Simple answer?...where it should have been instead of Santander in the first place, ie the current accounts paying 5%, 4%, and a 'clean' (ie no fee) 3%.


Lloyds
TSB
Nationwide
BoS
Tesco

ColdIron

I'd wait until November and see what moves the other banks make before switching. You still have 2 months at 3% left

xylophone

Simple answer?...where it should have been instead of Santander in the first place, ie the current accounts paying 5%, 4%, and a 'clean' (ie no fee) 3%.

The OP might have all of those already!:)

Stubod

Santander " 1,2 1.5 account " doesn't seem to have the same ring to it somehow

..(we have 3..oh dear..time to start spending ?..)

YorkshireBoy

xylophone wrote: »

The OP might have all of those already!:)

If they had, they'd have said so, so we didn't all waste our time suggesting alternatives they already had.

Diddle283

I didn't have money in them accounts as I didn't want to open thhat many accounts due to lots of credit checks! Guess I may have to in November!

YorkshireBoy

Diddle283 wrote: »

I didn't have money in them accounts as I didn't want to open thhat many accounts due to lots of credit checks!

You were worrying unnecessarily. Avoid overdraft facilities and there's little or no impact.

Guess I may have to in November!

September/October would ensure they were opened in time to take the Santander cash on 1/11. Unless you think they'll all cut to 1.5% or less?...unlikely?

xylophone

Those who use the Yorkshire Bank 40 Day ISA (over £30,000) won't be chuffed to find the rate reduced by 0.5% - at least last time they had the grace to confine their depredations to 0.25%!

http://www.ybonline.co.uk/personal/savings/interest-rates-and-charges/

dolphin19

We only opened our 123 account in May so this is a blow but with the maximum of £20000 in and VERY high bills (4 adults living in our household) it is still the best way of earning interest for us - we have earned £194 since the end of May. I will check back in November and see if there are any better deals with other banks but will stick with Santander for now.

ossie48

We have Lloyds/ TSB and previously Nationwide for the 12 months.

The issue is we have the bulk of our savings (nearly £60k) in three Santander 123's.

I think we will do as suggested and wait nearer the time to see what the situation is elsewhere before making any rash decisions.