Santander ISA rate reduction from 0.1% to .01% (£10k+)

Stubod

...just got this from Santander, not that I have one anymore..... but how low can you go!!

Swipe

Shocking. I hope everyone transfers out all their money.

bowlhead99

Stubod said:

...just got this from Santander, not that I have one anymore..... but how low can you go!!

A limbo champion walks into a bar.

He is disqualified

On a more serious note,  0.001 would be lower than 0.01. They could just keep adding decimal places rather than having to say it's no longer an interest bearing account.

Still, at least the ISA status means that if you get 0.01% from it you will get to keep all that that lovely money rather than potentially only net 0.00x% after tax...

Stubod

I wonder how much money has been pulled out of Santander since they reduced their rates? ...we had 3 off 123 accounts and 2 ISA's that have now all been moved. 

Swipe

Well, I've just gone from a Santander Select customer to holding just £44 with them. The same with my HSBC Premier account, I've withdrawn all my ISAs from there too so I'm expecting them to downgrade my bank account shortly. Not like there were any decent benefits apart from worldwide travel insurance which I can't use anyway.

fonesaver

Of course they are still happy to charge 21.7% interest on their credit cards!

K9

Swipe said:

Well, I've just gone from a Santander Select customer to holding just £44 with them. The same with my HSBC Premier account, I've withdrawn all my ISAs from there too so I'm expecting them to downgrade my bank account shortly. Not like there were any decent benefits apart from worldwide travel insurance which I can't use anyway.

Same here, but with Nationwide.  I'm not sure if their ISA is 0.1% or 0.01% from memory and in real terms it doesn't really matter.  But I've got several years cash ISA savings there totalling over £50k.

They need a new home - best options that I can see is Yorkshire BS for transferring the lot in @ 0.8% and a new ISA for this tax year with NS & I at a slightly higher 0.9%.

Any other suggestions I'd be glad to hear.  I've also got a small S&S ISA worth about £2k that has fallen massively since February (and I only opened it in January) ...

Swipe

I'm also in the process of transferring out my ISA from Nationwide (0.03%) but when I queried why it was taking so long they decided to tell me it had been rejected it but refuse to give me a reason why. So it's currently stuck in limbo and the receiving provider has heard nothing from them.

Stubod

A few years ago we moved all our cash Isa's into S&S Isa's but we wanted to keep some cash on hand, and I am glad we did! However with general interest rates so low I am considering more S&S Isa's and SIPPs. But of a tricky one really as although the S&S Isa's took a dive they have recovered a little, but our overall returns have not been that good great.

I did think that when they had recovered I would cash them in and just go with savings accounts instead but it looks like that's a none starter now as well!

datostar

Santander shares have been on a downward trajectory too for several years now. I inherited some from my late father 9 years ago. Value today when I sold them 1/3 of what they were then. Never mind, I'm glad to be rid. I see very little prospect of improvement in that quarter with all we MSE'ers jumping ship from 123 and ISAs too.