Santander Easy Access Limited Edition

Kim_13

where_are_we said:

Got my Santander email 2 hours ago - Clear indication of interest rate and account number going down in email. More than 2 months notice which is more than reasonable. Forumites would do better to spend time opening best alternatives rather than complaining.

I do wonder if they’ve changed the email in a later batch. I’ve checked mine twice more and it didn’t have anything about a rate or a reduction, only the account number. Such a change is exactly what I thought was needed so good on them.

My Santander account doesn’t have much in it, sub £5, so no need for an alternative for me.  

Mrs_Gardener

MSE_Petar said:

Hi everyone,

Santander has announced it'll be cutting the rate on Issue 3 of its limited edition easy-access saver to 4.2% on 20 May - we've published an MSE News story about this here:

Santander to cut rate on popular 5.2% easy-access saver – should you switch?

Thanks,
MSE Petar

TBH I read the interest section of the Key Facts at the time I opened the account in September and took " 5.20% AER/gross (variable) for 12 months from account opening" to mean that the interest was variable for later applicants/versions of the account but that I would get 5.20% for the full 12 months.  I can see now they didn't mean that at all.  I'll be looking in May to see if anything better is on offer from them or elsewhere.  

BooJewels

Kim_13 said:

where_are_we said:

Got my Santander email 2 hours ago - Clear indication of interest rate and account number going down in email. More than 2 months notice which is more than reasonable. Forumites would do better to spend time opening best alternatives rather than complaining.

I do wonder if they’ve changed the email in a later batch. I’ve checked mine twice more and it didn’t have anything about a rate or a reduction, only the account number. Such a change is exactly what I thought was needed so good on them.[snip]

I got my email at 15:15 yesterday and it says to log in to see the letter and that 

"It relates to your: 

• Interest rate going down on your savings account ending in xxxx."

Fingerbobs

BooJewels said:

Kim_13 said:

where_are_we said:

Got my Santander email 2 hours ago - Clear indication of interest rate and account number going down in email. More than 2 months notice which is more than reasonable. Forumites would do better to spend time opening best alternatives rather than complaining.

I do wonder if they’ve changed the email in a later batch. I’ve checked mine twice more and it didn’t have anything about a rate or a reduction, only the account number. Such a change is exactly what I thought was needed so good on them.[snip]

I got my email at 15:15 yesterday and it says to log in to see the letter and that 

"It relates to your: 

• Interest rate going down on your savings account ending in xxxx."

Unusual wording. Usually if it's going down it's "changing" and if it's going up it's "increasing"

Still no email at all here. 

silvercue

Still no email here.  I wonder if they are staggering their email for some reason?

ua8

Received email yesterday about the rate dropping, I do have another fixed 1 year maturing in May so will have to decide what to do next go fixed or easy access rates only seem to be going one way now

35har1old

ua8 said:

Received email yesterday about the rate dropping, I do have another fixed 1 year maturing in May so will have to decide what to do next go fixed or easy access rates only seem to be going one way now

Virgin has just sent a reminder that
they are decreasing the interest  paid on savings account linked to the current account it was never a great rate but the reduction is 1.05%
Can't remember being informed before. 
New rate applies from 19/03

happybagger

Wouldn't be surprised if they pulled their limited access 5.11% account very soon, there are bound to be a load opening them up as the min is only £1, to take funds when the santander rate drops

WillPS

callum9999 said:

WillPS said:

I think putting the interest down a whole % point on limited issue, 12 month fixed term, account is a bad look for Santander, especially since the base rate hasn't shifted at all since it was launched and when it does it's highly unlikely to come down by anything like as much.

I accept totally it's their right to do this but I'm not full of gratitude that they've done it, extra notice or otherwise.

Why do you think the base rate is relevant?

Santander evidently don't need as much money as they're currently paying out 5.2% interest on so are reducing it - the base rate could be 100% and it wouldn't make a difference (aside from the economy crash obviously!) - if they don't need it, they don't need it. You'd presumably do the same in reverse (i.e. you're paying out interest on an overdraft while you have excessive amounts of money in your savings account)?

Your suggestion that they just put the excess in a BOE account and pass on the interest doesn't seem particularly logical when they're likely going to drop below 5.2% in the near future.

Seems incredibly poor planning to swamp the market with an eyecatching offer on a short 12 month term and then find themselves 6 months in to it having bitten off more than they could chew. 

There were other levers available than to notch down a full % point. They're absolutely entitled to do what they've done - my point is merely that it's a bad look; Santander will have captured a lot of new business with this offer and you can only imagine a good amount of them will be thinking along similar lines with this.

TonyMMM

I'll be moving £40k out into ISAs and £2880 into my SIPP in April, - then I'll have a look around to see what to do with the rest.

Be interesting to see what the options are then for accounts with easy access.