MSE News: Santander slashes savings rates amid ongoing 123 speculation

Rates on two different Santander products have been cut this week as customers continue to wonder if more are to come...
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'Santander slashes savings rates amid ongoing 123 speculation'
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  • Funnily enough, only yesterday I was thinking about opening a Santander Regular eSaver account for the 5% interest. Looks like I missed the boat on that one!
  • robin58robin58 Forumite
    2.8K Posts
    Typical Sandtander whitewash answer. They used to be a customer lead bank, giving good rates. Now they just a typical bank to which it's own money gauging internal interests come first.

    Soon going to move ISA's out of there for this reason.
    The more I live, the more I learn.
    The more I learn, the more I grow.
    The more I grow, the more I see.
    The more I see, the more I know.
    The more I know, the more I see,
    How little I know.!! ;)
  • bigadajbigadaj Forumite
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    Ninth Anniversary 10,000 Posts Name Dropper
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    robin58 wrote: »
    Typical Sandtander whitewash answer. They used to be a customer lead bank, giving good rates. Now they just a typical bank to which it's own money gauging internal interests come first.

    Soon going to move ISA's out of there for this reason.

    Why the heck have you got isas there anyway?
  • edinburgheredinburgher Forumite
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    Part of the Furniture 10,000 Posts Name Dropper
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    I think that Santander will be shooting themselves in the foot if they decide to chop the interest rate associated with the 123 account.

    This account seems to have transformed their fortunes from a joke bank with terrible customer service for a lot of their accounts into one that has successfully targeted the middle ground and improved their fortunes (featuring in best buy tables for years and being able to show much higher rates of customer satisfaction for the account).

    The 3% rate has been a real sweet spot for a lot of customers (myself included). Not high enough to compete with regular savers, but far better than a lot of the competition were offering for sums up to £20,000. I suspect that they have been able to capture a lot of the savings market for cash rich, time poor customers who just wanted a decent rate without too much work.

    I haven't looked seriously at switching, but if the rate dropped I would be forced to do so.
  • colstencolsten Forumite
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    Not high enough to compete with regular savers, but far better than a lot of the competition were offering for sums up to £20,000.

    If you are managing to have £20K or more at all times in regular saver accounts that pay more than 3%, please share how to do it.
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