Santander to slash 123 account interest and shake up overdrafts

JimmyTheWig

brewerdave wrote: »

I wonder which main stream bank (if any) is going to chase the £millions that will suddenly be looking for a new home??:(

I don't know that any of them will particularly want it.

roddydogs

Why would you want 2 marcus accounts when its not limited to 20k?

Fingerbobs

castle96 wrote: »

"I am considering Marcus (maybe two accounts)."

CAN you have 2 accounts in ONE name ??

The terms and conditions say "Each Marcus account you open has a limit on how much you can pay in" which implies that you can have more than one, but I can't see it explicitly stated anywhere.

Wikikenkey

castle96 wrote: »

"I am considering Marcus (maybe two accounts)."

CAN you have 2 accounts in ONE name ??

One in my name, one in partner's.

molerat

How on earth do you "upgrade" or change the account type ? Clicking on the upgrade or apply links takes you to a full blown application which eventually gives you the option to enter an account number then error message of you cannot switch from a Santander account, go to the account you wish to switch and click through from there. In the actual account page there is nowhere to click.

Ed-1

molerat wrote: »

How on earth do you "upgrade" or change the account type ? Clicking on the upgrade or apply links takes you to a full blown application which eventually gives you the option to enter an account number then error message of you cannot switch from a Santander account, go to the account you wish to switch and click through from there. In the actual account page there is nowhere to click.

You can transfer to a 123 Lite online but not an Everyday Saver. The latter needs to be done in branch:

molerat

Ed-1 wrote: »

You can transfer to a 123 Lite online but not an Everyday [STRIKE]Saver[/STRIKE]Current. The latter needs to be done in branch:

Figured it out now thanks. I think I will change to a lite as a temporary measure and take the £1 hit then close once I have moved the non cashback paying DDs away. I will still be £1.50 better off as (roughly) £10K at 1.5% = £12.50 less £5 = £7.50 against £10K at 1.2 % = £10 less the £1 Santander hit = £9.

enthusiasticsaver

I think this will cause many to move their money from Santander. We have the full Santander 123 and keep on average around £16k to £20k in it and the rest of our money in Marcus accounts. We have stuck with the full fee paying account so far as we get on average £9 per month cashback along with the 1.5% interest although obviously less once the monthly fee is taken into account. We will be moving to the Lite version and moving most of our money into Marcus. We will probably close the 123 credit card down too.

DavidT67

OK, so we have three Santander 123 'Full Fat' accounts with £20K each, which currently pay £900 interest per annum, no tax deducted as within our savings allowances and all over savings and investments are in tax wrappers.
Cashback on all accounts equals or exceeds £5 pm monthly fee. Also have two 123 regular savers currently earning £72 pa. So £972 pa total?

Post May, we would drop to £600 interest plus new regular savers earning £60, so £660 pa total.

MSE offers HSBC Advance account as alternative with switching bonus £175 x2, no interest, no cashback, HSBC regular savers at 2.75% , so new total would be £ 350 bonus plus £100 interest.

So at first glance it seems like sticking with 'Semi-Skimmed' 123 Select accounts is still better.
Am I missing something?

I guess if we reduced 123 balances to £5K each to cover monthly outgoings and moved £45K emergency fund to a savings account at 1.35% we would gain around £150 pa interest compared to leaving it all at Santander. A bit more effort for a marginal gain.

schiff

DavidT67 wrote: »

Cashback on all accounts equals or exceeds £5 pm monthly fee. Also have two 123 regular savers currently earning £72 pa. So £972 pa total?

Post May, we would drop to £600 interest plus new regular savers earning £60, so £660 pa total.

MSE offers HSBC Advance account as alternative with switching bonus £175 x2, no interest, no cashback, HSBC regular savers at 2.75% , so new total would be £ 350 bonus plus £100 interest.

So at first glance it seems like sticking with 'Semi-Skimmed' 123 Select accounts is still better.
Am I missing something?

I guess if we reduced 123 balances to £5K each to cover monthly outgoings and moved £45K emergency fund to a savings account at 1.35% we would gain around £150 pa interest compared to leaving it all at Santander. A bit more effort for a marginal gain.

I think that's the biggest 'hit' we've seen; it must have been a big shock.

I think though that we're all going to have to accept up to 1.5% for our safe savings. Any adjustment to bank rate could make it worse.