They didn’t even tell us rates were being cut, say savers
SANTANDER 123 account customers reacted with fury yesterday when they learned of the rate cuts to the flagship account.
Some accused the bank of betraying customers, while others asked why the bank had not written to account holders before announcing the changes in the Press.
And they questioned how the bank could continue charging the same monthly fees when the rewards had been cut so drastically.
Peter Barlow, 78, has had two Santander 123 accounts since the bank launched them in March 2012.
He is set to lose around £200 a year as a result of the interest rate cut.
The retired architectural technician earns around £50 a month in interest and £3 in cashback on bills.
Peter, who lives with his wife, Agnes, a 78-year-old retired typist, was drawn to the 3 pc interest rate the account paid in the past.
The father-of-three decided to open two accounts, in order to earn as much interest as possible.
And even after the bank halved the interest it paid from 3 pc to 1.5 pc, he was still earning around £25 a month in interest from each account.
After his £10-a-month account fees, this worked out at £480 a year.
But if the account pays him just 1 pc interest he is set to earn around £16 a month less, or around £280 once fees are deducted.
Peter who lives in Solihull, says: ‘I’m shocked, it feels like the bank is betraying customers by telling the Press about this before writing to us.’
The grandfather-of-four says he will look around to see if there are betterpaying current accounts on the market. He adds: ‘Santander should cut its fees to compensate customers for these changes, but I’m sure it won’t.’
Lynn Rogers believes the Spanish bank has let her parents down.
Retired publisher Brian Davis, 88, and his wife Hilda, 87, have a joint 123 account and earn around £20 a month in interest and £7 in cashback.
Lynn, a full-time carer for her parents, helped set up the account after Brian was diagnosed with Alzheimer’s four years ago. Her mum had already been diagnosed with vascular dementia.
Lynn, 57, who lives near Swansea, says: ‘I wanted to do right for my parents and to be able to show my four siblings I was getting as much interest as possible for them.’
When they first opened the account, the pensioners were earning 3 pc on their balance.
Their daughter was disappointed when Santander cut this in half, but the couple were still earning around £27 a month in interest and cashback before fees were deducted.
The mother- of-four has power of attorney for her parents and says she will close the account if the interest rate is cut again.
Lynn, who lives with her husband Barrie, 50, a builder, says: ‘They have been making money out of my parents for four years and now they are letting loyal customers like them down.’