Interest rate cull - current accounts rates going down by the day

adidas

Looks like recession on the way. I have a 123 Santander account. Was looking to switch to Starling due to monthly charge and rate drop - now Starling announced big rate drop. I got a marcus account to transfer money to that instead of 123 - slight drop but still very competitive. Any ideas of best move next in terms of current account? Wondering if I should bother with Starling at all now given rate drop. Not sure much I can do to optimise the situation?

digalumps

Probably the best advice is to choose a current account based on whatever factors are important to you e.g. customer service or branch location or app function rather than anything to do with interest rates

that will save you having to switch around all the time chasing to the bottom leaving you time to smell the roses

magritte

Some examples, with various conditions attached: 

• TSB Classic Plus 1.5% on first £1,500
• Virgin Money Current Account 2% on first £1,000 or 
• Barclays with blue rewards £3 per month (£7 reward minus £4 account fee) 

eskbanker

adidas said:

Looks like recession on the way.

Well that's one way of looking at it, but I think most would agree with the chancellor's comment yesterday that we're already well into it, even if his remark that we're in the middle of it would seem unlikely....

Thrugelmir

Reducing interest rates on savings accounts have no direct correlation with recessionary times. 

born_again

magritte said:

Some examples, with various conditions attached: 

• TSB Classic Plus 1.5% on first £1,500
• Virgin Money Current Account 2% on first £1,000 or 
• Barclays with blue rewards £3 per month (£7 reward minus £4 account fee) 

Expect changes soon.
With base rate @ 0.10%
Getting any decent return on savings is going to get harder.

fenwick458

I shifted some cash to moneybox for a half decent rate, 1.65 ish, the day later it was slashed!
I was scratching my head looking at all options of what to do with it, then just realised I have some mortgages at 2.5 and 2.8, so have decided to just overpay the max on them and binned all the savings accounts for now. 

I was a bit puzzled earlier in the week when i hear the news on the radio that they "think" a recession might be coming...
is that not blindingly obvious!