S123 to cut interest rate to 1.5% for balances upto 20k in Nov 2016

[Q]

As title.. S123 to cut Interest rate to 1.5% in Nov 16. For people with 20k in this means after you pay the £5 monthly charge you'll earn £240..

[welshmatt]

No great surprise, mse were predicting a cut a while back but only to 2%. Even with 3 accounts across 2 people that's a crappy return.

[GregB]

A bigger cut than expected but I've read it is so they don't have to cut again if the BofE cut rates again.

[mjb1975]

Plus - and it quite minor - the new 1.5% rate applies to everyone, no matter what balance (at present, if you have <£1k, there's no interest). Quite a way to put a positive spin on it.

We just have the one (joint account) but have enough to get 3% so the cut is a bit ****. But, as Santander probably know full well, it's still the best on the market for higher balances so we'll probably stay put, as annoying as the cut is.

[Q]

When BOS introduce the DD condition then I'll go from approx £1100 to £240 p/y.. At least I'll be under the Tax limit now..

[shteve]

I suppose they could rebrand it 1/2 of 3.

[Q]

Originally Posted by shteve

I suppose they could rebrand it 1/2 of 3.

That's good for you.. As Martin Lewis said, they've retained the cash back so they can keep calling it S123.

[shteve]

It's pretty crap for me actually. Me and the Mrs have an account each, both maxed out. Pretty sorry state of affairs when you have to pay £5 a month to get 1.5% interest and it's the best offer on the market.

[CrumpetMan]

Originally Posted by Q

When BOS introduce the DD condition then I'll go from approx £1100 to £240 p/y.. At least I'll be under the Tax limit now..

Are you abandoning BOS because of direct debits? Just open a couple of Tesco savings accounts and use those to setup direct debits for BOS.


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[Q]

Originally Posted by CrumpetMan

Are you abandoning BOS because of direct debits? Just open a couple of Tesco savings accounts and use those to setup direct debits for BOS.


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You mean for transferring funds? I thought Direct Debits had to be for paying bills as opposed to transferring funds..

[doogie]

Originally Posted by Q

You mean for transferring funds? I thought Direct Debits had to be for paying bills as opposed to transferring funds..

Tesco internet savings accounts are relatively unique in that they allow you to set up a direct debit from another account to pay money into them - most accounts only allow standing orders.

You can easily open two of these accounts and use them to fulfill DD requirements on multiple accounts - either set them at a figure you're comfortable with (wouldn't go under £1 just out of paranoia) or set them at around half of the interest that will be added to that account each month.

You can also setup with gocardless to take DDs for a 1% fee although they may ask some questions about your intentions - I'm treasurer for an association so I told them I was looking at it as an option for membership dues.

[CrumpetMan]

Have a look on moneysavingexpert forums, it is mentioned on there a lot.


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[Q]

Originally Posted by doogie

Tesco internet savings accounts are relatively unique in that they allow you to set up a direct debit from another account to pay money into them - most accounts only allow standing orders.

You can easily open two of these accounts and use them to fulfill DD requirements on multiple accounts - either set them at a figure you're comfortable with (wouldn't go under £1 just out of paranoia) or set them at around half of the interest that will be added to that account each month.

You can also setup with gocardless to take DDs for a 1% fee although they may ask some questions about your intentions - I'm treasurer for an association so I told them I was looking at it as an option for membership dues.

Cheers..

[Q]

Set up 6 Direct Debits to 6 separate charities for a couple of pound a month. Cornwall Air Ambulance, Guide Dogs,RNLI,Cancer Research, Macmillan and London Air Ambulance. They all get a monthly donation, I retain the interest on all 3 accounts.

[cjanderson]

well it went down to 0.6% last summer, I did the maths and still 0.6% on £20k was better than most cash isa's I could find.

Now it will go down to 0.3% from April so I will move the cash. I may still keep the account, need to do the sums on fee versus cashback (and i have a linked 123 credit card that i'd like to keep). i may go down to the LITE 123 i suppose.

[GregB]

Originally Posted by cjanderson

well it went down to 0.6% last summer, I did the maths and still 0.6% on £20k was better than most cash isa's I could find.

Now it will go down to 0.3% from April so I will move the cash. I may still keep the account, need to do the sums on fee versus cashback (and i have a linked 123 credit card that i'd like to keep). i may go down to the LITE 123 i suppose.

Yeah, think I'll drop to the lite account. I can then switch if and when a decent switch freebie appears.

[cjanderson]

yes to me its never been a main current account, just one I moved few Bills to (for the cashback) . also gives me access to the regular saver, at 3% which is better than nothing.

[Arthur Fowler]

Originally Posted by cjanderson

yes to me its never been a main current account, just one I moved few Bills to (for the cashback) . also gives me access to the regular saver, at 3% which is better than nothing.

Is that an old account? Can't see anything near that for a regular saver now

[jockosjungle]

No can't see much of anything at the moment. Best rate around seems to be premium bonds that pay about 1% based on average luck. If you have enough to invest the luck should even itself out to some extent.

[Arthur Fowler]

Originally Posted by jockosjungle

No can't see much of anything at the moment. Best rate around seems to be premium bonds that pay about 1% based on average luck. If you have enough to invest the luck should even itself out to some extent.

Yes. I'm going to move a big chunk from my 123 into premium bonds.