Santander to slash 123 account interest and shake up overdrafts

ColdIron

Posted on the Budgeting & Bank Accounts board but might be of interest here even though it ceased to be a useful savings account since 2016. Effective 0.7% rate after the £5 monthly fee. Same cashback with the Lite account for £1

• At the moment, the 123 account pays 1.5% AER on balances up to £20,000, as well as up to 3% cashback on selected household bills, for a £5 fee.
• But the bank's now revealed that from 5 May 2020, it will be cutting its savings rate to 1% AER and capping its cashback at £5 per month in each of its cashback categories, for new and existing customers. The £5 monthly fee will remain the same.

https://www.moneysavingexpert.com/news/2020/01/santander-to-slash-savings-rates-and-shake-up-overdrafts---what-/

webjaved

I was paying that £5 fee for 3% cashback on bills - binned them off and moved over to Nationwide. Best decision ever.

Fingerbobs

I can't see the thread in B&BA?


I was wondering how long it would be before they dropped the rate on 123. This comes as no surprise to me at all. The cashback caps won't affect me as I never hit more than £5 in any one category anyway.

ChopperST

Its telling which direction the banks see interest rates going - will we see a 0% base rate this year?

surreysaver

No point me having my Santander Mortgage direct debit set at £1k after April, then!

soulsaver

surreysaver wrote: »

No point me having my Santander Mortgage direct debit set at £1k after April, then!

Got 2 x 123 acs? Set up £500 DD on each?

Brilley

...oh b*gger... ..another one bites the dust!! We have 3...looks like time to find an alternative...if there is one?

LHZ

Regarding altrrnatives, I'm considering moving to HSBC for the £175 bribe then dumping everything into my existing Marcus account.

fun4everyone

Thanks for the heads up. I did already move my cash into Marcus/Regular Savers and changed 123 into 123 lite when Marcus opened but just shows there is no let up. Regular savers getting crap now as well.

If this is for 123 Lite as well it will affect me as I go over the £5 cashback in one category.

colsten

ChopperST wrote: »

Its telling which direction the banks see interest rates going - will we see a 0% base rate this year?

Negative interest rates are on their way. Perhaps not this year, but soon.

colsten

Brilley wrote: »

. We have 3...looks like time to find an alternative...if there is one?

It totally depends on your requirements and circumstances. If you can detail them, people can make suggestions. Or you can work it out yourself from the articles on the main site.