littleoldlady
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Post by littleoldlady on Aug 19, 2022 13:33:34 GMT
I have just gained access to my brother's accounts under a Lasting Power of Attorney. What I have found mystifies me. Before I make the long trip to the nearest branch I would be grateful if someone else with Santander accounts could check theirs. He has a 123 account which costs £4 per month and gives cash back on direct debits and supposedly 1% on the balance but the interest being paid seems to be 0.3%. He has two cash ISAs supposed to be paying 0.1%, that's appalling enough but they seem to be paying only 0.01%. Am I going as daft as my brother? Attachments:
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littleoldlady
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Post by littleoldlady on Aug 19, 2022 13:34:42 GMT
There is only one transaction per year. 
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Post by Ace on Aug 19, 2022 13:39:28 GMT
I have just gained access to my brother's accounts under a Lasting Power of Attorney. What I have found mystifies me. Before I make the long trip to the nearest branch I would be grateful if someone else with Santander accounts could check theirs. He has a 123 account which costs £4 per month and gives cash back on direct debits and supposedly 1% on the balance but the interest being paid seems to be 0.3%. He has two cash ISAs supposed to be paying 0.1%, that's appalling enough but they seem to be paying only 0.01%. Am I going as daft as my brother? The interest rate only very recently increased from 0.3% to 1%. CORRECTION: It went up to 0.5% on 8th March and to 0.75% on 20th June, them 1.0% on 11th August.
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littleoldlady
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Post by littleoldlady on Aug 19, 2022 14:30:53 GMT
Thanks. So on 14th Aug he should have got just over 0.75%/12 but on a balance that varied between £49k and £50k over the month he only got £13.11, when I make it about £32.
Any thoughts on the ISA rate?
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Post by Badly Drawn Stickman on Aug 19, 2022 14:36:41 GMT
Thanks. So on 14th Aug he should have got just over 0.75%/12 but on a balance that varied between £49k and £50k over the month he only got £13.11, when I make it about £32. Any thoughts on the ISA rate? Been a while since I had the 123 account, but the interest was only on 20k back then, from memory anything above got nothing.
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pikestaff
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Post by pikestaff on Aug 19, 2022 14:56:55 GMT
£20k limit continues to be the case. www.santander.co.uk/personal/current-accountsRe the ISAs, I can't find historical rates on their website but I would not be at all surprised if the rate before the BoE started to put up rates was 0.01%. My Mum had a few of those (not with Santander) before I took over her finances under LPA. All were follow-on ISAs that she'd been put on automatically after fixed rate ISAs term expired. She will have been written to when they were due to expire but, since she'd neglected to tell the counterparties that she'd moved, she never saw the letters. |
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Post by df on Aug 19, 2022 16:35:30 GMT
Thanks. So on 14th Aug he should have got just over 0.75%/12 but on a balance that varied between £49k and £50k over the month he only got £13.11, when I make it about £32. Any thoughts on the ISA rate? Been a while since I had the 123 account, but the interest was only on 20k back then, from memory anything above got nothing. It used to be 3% on 40k (they allowed two accounts per customer). Can't remember exactly what the fee was (£3pm per account?), but it was covered by cash back on utility bills. It was a good offer and I stayed with 1|2|3 for quite a few years until it became useless.
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littleoldlady
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Post by littleoldlady on Aug 19, 2022 21:04:36 GMT
Thanks Badly Drawn Stickman & pikestaff that explains the 123 problem. I will reduce the balance to £20k. As for the ISAs I found that the rate really did use to be 0.01% until it went up in April. It seems that Santander makes its profits from people with dementia or forgetfulness. |
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adrianc
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Post by adrianc on Aug 20, 2022 7:58:28 GMT
As for the ISAs I found that the rate really did use to be 0.01% until it went up in April. It seems that Santander makes its profits from people with dementia or forgetfulness. All financial institutions penalise complacency and lack of active management of accounts. This should not be news.
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Post by bernythedolt on Aug 20, 2022 12:20:18 GMT
I've only skim-read, and this may not be relevant, but when I operated a 123 current account, you had to keep two direct debits in place. From memory, if one finished, the interest rate would drop alarmingly. I think there was also a minimum funding requirement per month, too, again with interest penalty if defaulted.
Apologies if these pointers are wide of the mark in your case.
EDIT: I think you've already solved your 123 current a/c interest poser, but for completeness... Having checked my old docs, the requirement to get full interest paid was (in my case) two active DDs, and £500 paid-in per month.
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littleoldlady
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Post by littleoldlady on Aug 20, 2022 18:11:21 GMT
As for the ISAs I found that the rate really did use to be 0.01% until it went up in April. It seems that Santander makes its profits from people with dementia or forgetfulness. All financial institutions penalise complacency and lack of active management of accounts. This should not be news. That may be so, but they don't all brag about how dementia friendly they are (whilst leaving them on a 0.01% rate) www.santander.co.uk/personal/support/supported-banking/dementia
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Post by mfaxford on Aug 28, 2022 18:54:57 GMT
For an ISA that sounds about right, I think the interest is paid annually on the anniversary of the ISA being set up. Up until recently I think the ISA interest rate for an older ISA was 0.01% (now looks to be 0.1%), you get a better rate with a 1 or 2 year fix (although with the way rates are increasing it may not be a good longer term rate)
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