Santander 123 rate to be cut to 1.5%
Options
Comments
-
The big banks have gone the same way as the big supermarkets, leaving the doors widly open for Aldi, Lidl, Home Bargains and B&M stores ( chairman Sir Terry Leahy!) So the likes of Atom etc will reap the benefits.I think the big banks forget there are some savvy customers out there
If a challenger bank can afford to lose hundreds of pounds a year per customer then you have a good point.I hate verisimilitude.0 -
I hope Santander will be doing enough research and risk assessment as they will definitely suffer the cash flow problem if many people move their money at relatively the same time span.
Santander will be expecting to see the loss of a large number of accounts and I have no doubt that they will have plenty of liquidity to enable the exodus. The bigger issue is whether they have sufficient numbers in their team(s) to process the inevitable switching.
If I were moving from Santander I would do so mid-October just to be on the safe side.I hate verisimilitude.0 -
... good point - 7 day switching may come under a lot of stress:eek:Santander will be expecting to see the loss of a large number of accounts and I have no doubt that they will have plenty of liquidity to enable the exodus. The bigger issue is whether they have sufficient numbers in their team(s) to process the inevitable switching.
If I were moving from Santander I would do so mid-October just to be on the safe side.0 -
where to switch is the problem.Done most of them.Only Coop left for me, that's worthwhile.brewerdave wrote: »... good point - 7 day switching may come under a lot of stress:eek:0 -
I hope Santander will be doing enough research and risk assessment as they will definitely suffer the cash flow problem if many people move their money at relatively the same time span.
I think Santander know exactly what they are doing.
A lot of people will be closing their 123 accounts, but many customers will see that this remains a very good current account. Even with no interest, the cashback on DDs more than compensates for the fee for many.
They will end up with more customers than they had before they launched their loss leader 123 account.
And they can borrow money on the markets much cheaper than 1.5%.0 -
I think Santander know exactly what they are doing.
No doubt about it. It was utter incompetence if they did not ...
Totally agree. Also keep in mind some people have 4 combine A/C which might be up to £75,000 in total to be withdrawn.A lot of people will be closing their 123 accounts
Yes for the customers who do not do enough research. But I doubt if many MSEr with good knowledge will be falling into this category.But many customers will see that this remains a very good current account. Even with no interest, the cashback on DDs more than compensates for the fee for many.
http://personal.natwest.com/personal/current-accounts/compare-current-accounts/reward-account.html
"Earn 3% in Rewards on seven types of household bills paid by Direct Debit, including Council Tax Only £3 a month"
So 3% in Rewards across the board not only on particular bill with only £3 fee. I will leave it to MSEr with good knowledge to see which one is better.
Mind to elaborate this given the fact as above ...They will end up with more customers than they had before they launched their loss leader 123 account.
Mind to elaborate this ??And they can borrow money on the markets much cheaper than 1.5%
If it is still subject to credit worthiness, then it is irrelevant, because enough people here like me have been borrowing about £25,000 or even more with 0% interest ...0 -
Isn't it obvious? Not all those who joined will leave.Mind to elaborate this given the fact as above ...
Again it's obvious, if you read beyond the 0.25% cut announced and look at other things such as QE measures.Mind to elaborate this ??
Indeed, for many years now Santander have been able to borrow money at much, much, less than the 3% they've been paying us.0 -
… but many customers will see that this remains a very good current account. Even with no interest, the cashback on DDs more than compensates for the fee for many.Yes for the customers who do not do enough research. But I doubt if many MSEr with good knowledge will be falling into this category.
You are speaking from a position of ignorance and false assumptions. I do more than enough research and have a good knowledge of the products available. I am aware of the NatWest account you reference, and have already investigated it.
My DD cashback with Santander is currently £159 pa. Take off the full fee of £60 and I’m getting £99 plus interest at 1.5%
If I switched to NatWest, I would get £142 pa, less a fee of £36, giving me £106 pa and no interest.
But to compare like with like, I could downgrade to 123 Lite, net £147, and get no interest.
Enough research, proving that for me 123 remains a very good account.They will end up with more customers than they had before they launched their loss leader 123 account.Mind to elaborate this given the fact as above ...
See above. Customers like me (and I was drawn in by this loss leading account) will be staying.And they can borrow money on the markets much cheaper than 1.5%.
For someone who does research and has a good knowledge, I’m surprised I need to educate you on this, but banks are currently lending to each other at 0.5% for overnight and 0.73% for 12 months.Mind to elaborate this ??0 -
... But if Santander slash the interest to 2% I will move my money around 20k to the Atom Bank or any other one year saving earning fixed interest of 2%+
https://www.atombank.co.uk/fixed-saver
I think you may not have done enough research here.
Look carefully at the page you have linked to.save up to £10,000 across all savings products0 -
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards