Wednesday, 17 August 2016
Santander reduces interest rate on 123 current account.
Yesterday Santander announced that they would be reducing their interest rate on the popular 123 current account. The rate will go down by half from 3% to 1.5%.
This account has been very popular with retirees who have been unable to gain a decent interest rate on their savings. Now that part of society will be further penalised (as a punishment for Brexit perhaps?).
I am a pensioner too. I remember back in 1970 when we were buying our first house, the interest rate was 12%. That is much higher than it is today for buyers. It is true that house prices are higher today comparatively speaking but nevertheless the interest rate was so high for my husband and I that we started in a flat (apartment). At that time, only the husband's income was taken into account and a maximum of three times that was loaned. The wife's income did not count. In fact she was more or less expected to stay at home and take care of the children.
Now at the end of our lives we are being clobbered the other way round. The savings, which we worked so hard to obtain, are returning a very poor rate of interest and we have only our pensions to live on.
We have made lots of sacrifices over the years. For my part, I stayed at home to look after my children when they were growing up, feeling that that was the best I could do for them. As a result we didn't have holidays, we only ran a very old car (when it was working). My husband worked locally to save on travel and we did without many of the things that this generation takes for granted that they will have, e.g. washing machine, dishwasher, microwave oven, meals out, evenings out etc. etc.
I think that Santander and other banks probably are just blaming Brexit for whatever they can so as to glean more money from the public. That is unfair and unjust.
Much of the doom and gloom that was predicted after Brexit has not come to pass so come on banks, let's play fair and square. You don't need to do this, do you!!!!