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Santander to slash 123 account interest and shake up overdrafts
Comments
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No! Thank you, I didn't realise it didn't pay interest. I assumed it did because it was being suggested to do a straight switch to save. What would be the point of switching as the £4 a month less fees is still less than 1% of £20,000?
So we would be looking for a current account that has a net interest including cash back of >1.3% which I'm still not sure there is?0 -
Possibly - you obviously know exactly what was said and how, but I was simply going by how you chose to precis it here, using unnecessarily emotive language like 'disgusted' and 'unprofessional'. 'Variable rate product has rate varied' doesn't really seem particularly disgusting or unprofessional to me, although that doesn't mean I'm thrilled about it either....Ageing_Stick_Insect wrote: »I'd like to think it was a measured response more than a rant.
I do understand why some people feel better for venting in circumstances like this, but what I don't get is the apparent notion that it might actually make a difference (unless there's any concrete evidence that it's unlawful or in breach of some sort of commitment that may have been overlooked, etc). Surely you don't think that banks reduce interest rates (or increase overdraft rates or other charges) with an expectation that their customers will be delighted, and will be shocked and surprised that people are unhappy about it, to the extent that they'd consider reversing the change?Ageing_Stick_Insect wrote: »Whether it's pointless or not remains to be seen. Maybe they will reconsider if every customer who is annoyed at their decision makes their views known. I feel better for having let them know how I feel rather than staying silent.0 -
You can change a full 123 to a 123 Lite by downgrading it, retaining the same account number, but that's not a 'switch' as such (in the usual sense of an account move from one bank to another using the Current Account Switching Service), and in any case they're not offering a switching incentive at the moment anyway....Can we please ask, if we have a 123 account and wish to switch to a 123 lite account.
Can we still be eligible for a switch cashback amount ??0 -
When posters compare the net return of a 123 Lite with a full 123, they're typically doing so on the basis that the bulk of the balance earning interest in a full 123 would be moved to a separate easy access savings account (paying 1.35% or similar), leaving the bare minimum in the 123 Lite for DDs, etc. This is obviously less convenient than keeping it all in the one place though....No! Thank you, I didn't realise it didn't pay interest. I assumed it did because it was being suggested to do a straight switch to save. What would be the point of switching as the £4 a month less fees is still less than 1% of £20,000?
So we would be looking for a current account that has a net interest including cash back of >1.3% which I'm still not sure there is?0 -
Ageing_Stick_Insect wrote: »I would urge all of you to send a secure message. Maybe their inbox will collapse and that would send a very clear signal of our discontent.
They already are well aware that dropping the interest rate on a previously market leading account will upset a lot of customers and cause a lot of money to be transferred out/accounts closed. However they won't have to pay nearly as much interest every month. They also already know if they offer a market leading interest rate they would immediately get thousands of applications and huge amounts of deposits - however then they would have to pay a shed load of interest.
All your message will do is give the person receiving it a good laugh as they send you the template response back. It will then go in the trashcan along with the hundreds of other similar ones they will be receiving today.
Look after your finances and do whatever is in your best interests. However do realise what is good for you is almost always not good for the banks. Profitable customers for banks are customers that are lousy with their money. Interest rate chasing tarts who pay no fees and take out no crappy products are almost certainly costing banks money.0 -
It's all about managing expectations. Maybe there should have been a warning on the product: "As you can see from the "AER Variable" text on or key product information, this product pays a variable rate, so please don't think we are being disgustingly unprofessional if we give you advance notice that we are going to vary it".Possibly - you obviously know exactly what was said and how, but I was simply going by how you chose to precis it here, using unnecessarily emotive language like 'disgusted' and 'unprofessional'. 'Variable rate product has rate varied' doesn't really seem particularly disgusting or unprofessional to me, although that doesn't mean I'm thrilled about it either....
However, customers would probably find that patronising and it still wouldn't stop people bleating that it was unfair if the rate change was down instead of up.
Business Development Executive #1:Ageing_Stick_Insect wrote:Whether it's pointless or not remains to be seen. Maybe they will reconsider if every customer who is annoyed at their decision makes their views known
What's the feedback from the customers about our reducing the interest rate and cashback available from this product?
Business Development Executive #2:
It turns out that customers don't like us reducing the interest rate and cashback available.
Business Development Executive #1:
Ok, that's totally in line with expectations.0 -
If only there was a visual metaphor for the futility of sounding off about this....
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1.8% on £20,000 is £360I have just calculated that with my cashback, including my £5 fee I am currently getting 1.8% on my £20,000.
Interest is £298
Less £5 fee is £238
So your cashback must be £122, or £10.16/mth
Had you moved to Lite last summer, and put your £20K in Marcus, you'd have made £110 from Lite (after the £12 fees) and (£20,000 x 1.5%
£300 from Marcus, so a total of £410. And that £50 extra increases your return to (£410 / £20000 2.05% on your £20K. Yes you'll have to a bit more work, but if absolute return is the aim... 0 -
Was the 1,5% rate last sumner with Marcus a fixed rate for a year, because the rate is now 1.35% variable. If it was also a variable rate last summer then by the tine you take into account the further reduction in interest rate the difference would be even smaller and hardly worth the extra effort.0 -
Stargunner wrote: »Was the 1,5% rate last sumner with Marcus a fixed rate for a year, because the rate is now 1.35% variable. If it was also a variable rate last summer then by the tine you take into account the further reduction in interest rate the difference would be even smaller and hardly worth the extra effort.
Its was 1.35% with a 1 year 0.15% bonus offer0
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