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Santander to slash 123 account interest and shake up overdrafts
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Yes....agreed. I have some myself, and it does mean cash in them is keeping pace with inflation. However I am most definitely not chasing them like I did with Virgin Branch 3%s for example.
When I had loads of 5%/4%/3% regular savers I held quite a bit more "emergency fund" cash than I do now.
It may. Will the saving they make on the interest rate reduction equal the loss that will probably happen in the reduction of deposited funds?
They're also changing their overdraft and some other fees...
I know, I've just upgraded! Might change to Lite in May
Before 6th April 2020
Arranged overdraft
< £2,000.00 = £1.00/day fee
£2,000.00 - £2,999.99 = £2.00/day fee
£3,000+ = £3.00/day fee
From 6th April 2020
39.9% APR/AER (variable)
Additionally, from 5th May 2020, both the foreign currency conversion fee for cash withdrawals in a foreign currency, and the foreign currency purchase few for a debit card payment in a foreign currency rise from 2.75% to 2.95% of the total transaction value.
It certainly puts my fretting over a half per cent rate cut into perspective.
£3/day for 365 days = £1,095
£3,000 × 39.9% = £1,197 and more if its higher
I'm not interested in chasing switching bonus, just a good-enough long term rate.
With the current account (still likely to yield £20pm in cash-back and interest) we have 2x regular savers at 3%, plus mini123 for each kid in 3% territory.