m2btj
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Post by m2btj on Jan 14, 2020 13:49:25 GMT
I've used the Santander 123 bank account as the go to current account for many years. Sadly, the days of 3% interest on credit balances of up to £20,000 disappeared in 2016 but the current 1.5% is still competitive & the direct debit cashback payments make it a good all round package for the thrifty saver. However, Santander have just announced that they are being forced to reduce the interest rate again following rises in the BoE base rate to 0.75%. From May, interest rates will drop from 1.5% to 1% on credit balances of up to £20,000. Cashback will be capped at £15 per month. Another blow to savers in an already challenging market. www.thisismoney.co.uk/money/saving/article-7885211/Santander-slash-cashback-123-account-takes-hit.html
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lara
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Post by lara on Jan 14, 2020 13:56:46 GMT
"Being forced to" my eye!
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invester
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Post by invester on Jan 14, 2020 13:59:21 GMT
Had 2 accounts; was a great thing for a few years.
At 1% less £5 a month it'll probably be worth closing one account and using account switches to get some cash. For the paying in purposes, banks haven't minded transfers in from other accounts that you own.
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benaj
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Post by benaj on Jan 14, 2020 14:59:18 GMT
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cb25
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Post by cb25 on Jan 14, 2020 17:39:26 GMT
I've used the Santander 123 bank account as the go to current account for many years. Sadly, the days of 3% interest on credit balances of up to £20,000 disappeared in 2016 but the current 1.5% is still competitive & the direct debit cashback payments make it a good all round package for the thrifty saver. However, Santander have just announced that they are being forced to reduce the interest rate again following rises in the BoE base rate to 0.75%. From May, interest rates will drop from 1.5% to 1% on credit balances of up to £20,000. Cashback will be capped at £15 per month. Another blow to savers in an already challenging market. www.thisismoney.co.uk/money/saving/article-7885211/Santander-slash-cashback-123-account-takes-hit.htmlSantander to pay savers less whilst at the same time the BBC reports "Santander has joined other big brands in setting a 39.9% overdraft rate."
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invester
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Post by invester on Jan 14, 2020 17:47:43 GMT
Spending £1,000 for £5? Or is there some other manufactured spend trick?
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benaj
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Post by benaj on Jan 14, 2020 18:10:30 GMT
Spending £1,000 for £5? Or is there some other manufactured spend trick? Yes, I have to be creative about spending.
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m2btj
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Post by m2btj on Jan 15, 2020 15:10:35 GMT
I've used the Santander 123 bank account as the go to current account for many years. Sadly, the days of 3% interest on credit balances of up to £20,000 disappeared in 2016 but the current 1.5% is still competitive & the direct debit cashback payments make it a good all round package for the thrifty saver. However, Santander have just announced that they are being forced to reduce the interest rate again following rises in the BoE base rate to 0.75%. From May, interest rates will drop from 1.5% to 1% on credit balances of up to £20,000. Cashback will be capped at £15 per month. Another blow to savers in an already challenging market. www.thisismoney.co.uk/money/saving/article-7885211/Santander-slash-cashback-123-account-takes-hit.htmlSantander to pay savers less whilst at the same time the BBC reports "Santander has joined other big brands in setting a 39.9% overdraft rate." They probably need that extortionate rate to pay the procession of celebrities endorsing Santander on TV. Santander would be far better off investing in customer products & services rather than giving millions to some of the highest paid people in the UK. Rory McIIroy, Jensen Button, Lewis Hamilton, Jessica Ennis & the odious Ant & Dec are all on the Santander gravy train!
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Steerpike
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Post by Steerpike on Jan 15, 2020 15:40:12 GMT
Santander 123 was great for a while, then moved on to M&S, then Natwest, and now in the process of switching that to HSBC.
I do like money for nothing but presumably the banks find that some transferees stick otherwise they wouldn't bother.
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iren
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Post by iren on Jan 16, 2020 15:16:04 GMT
Many people dislike their bank, but stick with it through inertia and concerns that any transfer process may not go smoothly. A transfer incentive can tip the scales to them making the move. This type of customer will stick with the new bank for a good period, possibly permanently.
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Post by bernythedolt on Jan 17, 2020 1:42:39 GMT
And those transfer concerns are usually well founded in my experience. I've only switched energy supplier twice in my life, both times were fraught with billing problems. On the first switch, the new company carelessly transposed my meticulously provided meter readings, inputting my gas figure for electricity and vice versa. A few months later we received our first new gas bill... for £3,400 in place of the usual ~£80 😲😲 Their software didn't even question such a ridiculous residential bill, or attempt to stop it!
I am wary of switches and invariably find them more hassle than promised. The one thing I will switch annually, though, is motor insurance and consequently I've managed to keep my premium under £200 for at least a couple of decades. £180 this year, fully comp 😎.
With bank switches, it seems commonplace to ensnare you by insisting on two direct debits minimum, as Santander 123 did. The hassle of rearranging that alone is another cause of inertia. Come May, I'll have to weigh up the inconvenience. 1% might still be worth staying for, just about, given the alternative current account offerings.
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iren
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Post by iren on Jan 17, 2020 21:11:20 GMT
I switched energy supplier years ago and the new company set up two accounts for me. They charged me under one account and collected my payments under the other. It went on for months, with them continually promising to merge the accounts, while actually doing nothing. Eventually, I received a notice telling me I would be disconnected. I filled out forms to switch back to my original supplier, after which, with much further chasing, the two accounts were finally merged and closed to effect the transfer.
A classic case of saving myself a few pounds at the cost of hundreds of pounds worth of administration and a great deal of stress.
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Post by bernythedolt on Jan 18, 2020 16:53:44 GMT
Billing systems are a nightmare. On my latest energy switch, the new supplier asked me to provide meter readings as soon as possible, about 5 days ahead of switching day. I complied, as they had stated, "these will be the readings going forward, accepted by both suppliers old and new".
Come the first bill, the old supplier had reneged and instead taken a smart meter reading on switching day itself. Consequently I was double charged by the new supplier for the units used in those 5 days. Upon discussion, the new supplier blamed the old for breaking the rules. "They shouldn't take a smart reading, because the whole industry has agreed to adopt this new system with early agreed readings a few days ahead of the switch. You need to argue it with them, etc, etc". I refused to thrash it out with the old supplier and insisted the new one sort it out with them if that's what it would take to square their books. "I'm your customer now, not theirs". They accepted that.
This dragged on for about a month, going nowhere, but there was now a principle at stake. So I contacted them again. After a few minutes of being given the brush off, I asked if they realised that the sum they had overcharged amounted to just £2-odd (!) and they were racking up several times this in wasted staff & office costs just to discuss the matter each time. The penny finally dropped and they decided, most sensibly, that the easiest way forward was to offer me £30 compensation for my hassle, and let's leave the billing system alone because it was far too complex for anyone to square away...
Naturally I was delighted to accept this pragmatic workaround. £28 profit! 😎
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lara
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Post by lara on Feb 11, 2020 21:57:52 GMT
The simplest move, assuming Santander facilitate it, might be to convert to a Santander 123 LITE:- Same 123 cash back, - only £1 a month fee that should not be difficult to cover with 123 cash back on bills - But no interest so keep minimum monthly balance. And find a 1% or better instant access account. Which might be non trivial if the BoE reduces the base rate from 0.75% to 0.5%. I made the move today to 123 Lite. It was very easily done by phone. Everything remains the same pretty much; direct debits, account number, debit card etc and access to the regular saver is maintained too. The Lite account has the same £500 minimum pay in as the regular 123 but it's a paperless account and there is a requirement to sign in to online banking at least once every three months in order to collect the cash back. No interest is paid on the account and the monthly fee is £1. Having done the arithmetic there was no reason to wait until May, in fact wish I'd made the change earlier!
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Post by bernythedolt on May 6, 2020 13:42:02 GMT
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