Santander’s shock move to slash the interest rate on its popular 123 account and cap how much cashback customers can earn is deeply disappointing.
When the 123 account was launched amid enormous fanfare in 2012 it paid customers up to 3 per cent interest on balances up to £20,000, and up to 3 per cent cashback on household bills — all for a monthly fee of just £2.
For starved savers, it was a brilliant deal and millions flocked to cash in. But over the years the Spanish bank has slowly chipped away at the perk, despite increasing the charge to £5.
Santander’s latest clawback on its popular 123 account will see customers earning just 1 per cent interest and facing a miserly £15-a-month cap on cashback
And as we reveal today, its latest clawback will see customers earning just 1 per cent interest and facing a miserly £15-a-month cap on cashback.
It is yet another example of loyal customers being treated like sacrificial lambs in favour of mortgage borrowers.
An ongoing ferocious mortgage price war has battered the bank’s bottom line. And city watchdog demands to overhaul overdraft fees and introduce a minimum interest rate for loyal savers are set to squeeze profits further.
Santander knows full well that now it has lured all these customers in, most are unlikely to have the energy to switch again – particularly with other rivals such as NatWest also cutting back on perks.
But savers must not roll over. For many of you, the latest changes could well mean that this account is just no longer worth having.
In fact, in the long run you may be better off sticking to a top-paying, simple savings account.
It’s also worth bearing in mind that Santander’s UK chief executive, Nathan Bostock, pocketed a tidy £6.4 million in 2018, making him one of — if not the — best paid bank chief.
Does a bank that treats its loyal customers with such disdain really deserve your business?
The Bischoff household has been spoiled over the past month thanks to some generous friends and family sending Christmas, birthday and engagement presents.
All were thoughtful enough to let me know when gifts were expected to arrive so I would be in to receive them.
So it was with disbelief that on three occasions I found parcels left outside, in clear view of passers-by, on a wet front step.
One friend sent me a screenshot of a message she had received at 7.40am claiming the gift (some beautiful flowers) had been ‘delivered to a safe place, on doorstep’ — complete with a photograph of the box outside.
It added: ‘A delivery card was left for your recipient. Driver’s note: ‘No answer pls inform recipient.’
This was strange because I was at home, our doorbell works, there was no delivery card and I’m not sure many would consider a front doorstep to be a ‘safe place’.
I know delivery drivers are under pressure to meet strict targets, but this is just silly. If you had any similar experiences over the festive period, I’d love to hear them.
We always enjoy hearing from readers who have successfully used Money Mail to fight their corner.
Last week, John wrote to thank our letters editor, Tony Hazell, for his article entitled ’50 terrific tips for a prosperous New Year’.
John had been hit by a truck changing lanes on the M1 on November 5, 2018, narrowly escaping serious injury.
John contacted his insurer Saga to report the accident and sent the other driver’s details plus photographs taken at the scene.
However, there began an utter rigmarole. Saga misunderstood his case and John was forced to chase the insurer no fewer than seven times for an update. A year later, he was still awaiting payment for the repairs to his car.
John says: ‘I then purchased the Daily Mail on January 1, 2020, and took note of tip number 43, which read: ‘Still not satisfied? Tell the firm you want to make an official complaint that is recorded on their complaints data.
‘This gives financial firms an added impetus to resolve your complaint as they must publish this data.’
‘After quoting this to my insurer, I received a call two days later from a manager agreeing to settle the claim. A cheque arrived five days after that. What a saga!’
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