# Santander



## StephandJohn (Sep 3, 2007)

Now the 123 account isn't so good has anyone any ideas on what to replace it with?


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## charlieivan (Apr 25, 2006)

According to Martin Lewis it is probably best to wait until the changes kick in in November before moving as other banks could well follow suit and cut their rates. They were quick to halve the interest rates but no sign of the monthly fee of £5 being halved.


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## StephandJohn (Sep 3, 2007)

I read that too. Its still worth having the account for the cashback as well.


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## 113016 (Jun 5, 2008)

If a person has more than one account, it is these secondary accounts that loose even more!
Your main account has lowered interest from 3% to 1.5%, , you pay the £5 fee, but kick back from direct debits should counteract this and probably give more back than the fee.
But on secondary accounts you have no way to recover the fee, which is 12 months at £5 equaling £60 total
Take the £60 total fee off the full interest on say £20k which will be £300 and this will equate to £240.
£20K giving interest of £240 equates to 1.2% interest
What the have also changed, is they now pay 1.5% interest from £1 (I think)
Coventry have also said interest rates are to drop. The Flexible iSA lowers by 0.15%


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## GMJ (Jun 24, 2014)

I'll stick with it now and see what the market does. I'll make a final decision in October then prior to the reduction.

Martin Lewis analysis here...

http://blog.moneysavingexpert.com/2...-Aug-16-v2&utm_campaign=nt-hiya&utm_content=3

Graham :smile2:


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## BrianJP (Sep 17, 2010)

Santander are pre empting the almost enviable further base rate cut by the Bank of England by cutting their rate by 50%.The other banks will surely follow 
Answer as already suggested is if you already have a 123 account keep it but if you dont , don't open one yet.
If you have spare cash put it elsewhere either under the bed into gold or premium bonds at least you'll get your original investment back .


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## 113016 (Jun 5, 2008)

To be quite honest, all Bank interest rates are so bad now, that although I had my fingers well and truly burned when the dot com bubble burst, and not just dot com, but household names such as Marconi.
I am seriously considering, reentering the equity market!:surprise:


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## Glandwr (Jun 12, 2006)

Definitely equities, stay away from gilts though. They are offering a negative yield for the first time ever. For relatively instant access and no cost buying and selling Premium Bonds if you are optimistic. I've had much more than the average over the years so will stick with them for the 30K max.

Dick


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## GMJ (Jun 24, 2014)

Dick

Its 50k maximum now isn't it?

We chopped ours in...to buy our motorhome :grin2:

Graham :smile2:


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## 113016 (Jun 5, 2008)

Glandwr said:


> Definitely equities, stay away from gilts though. They are offering a negative yield for the first time ever. For relatively instant access and no cost buying and selling Premium Bonds if you are optimistic. I've had much more than the average over the years so will stick with them for the 30K max.
> 
> Dick


Thanks Dick, I had completely forgotten about Premium Bonds. I discounted them a while ago when they lowered the chances of a win. Maybe I will give them a try!
Just did a quick check and the maximum is now £50K


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## 113016 (Jun 5, 2008)

The question I have seen before, is it better in one big lump or a few smaller lumps.
I expect there is no mathematical difference!
Just Luck!


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## GMJ (Jun 24, 2014)

I think we have around 5k left in PBs. Funnily enough there was a winners envelope waiting for me when we got back from our trip away. The first for many months. Eagerly ripping it open...

I was...

underwhelmed yet again with £50










Better than nowt though!

Graham :smile2:


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## Sprinta (Sep 15, 2010)

Premium Bonds are now £50k, was £40k and since the change I've been having any winnings reinvested. I've got some money coming to me from my mum's will I'll top up to £50k asap, and perhaps start another account in wife's name. I know the value doesn't go up but I guess it's safe in HMGov (for now) and I currently don't want to hold my money in anything that won't actually show any growth.


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