Why Do Santander Keep Offering Uncompetitive 123 Exclusive Accounts?

Written by Karen Bryan

santanderletterheadSantander continue to offer uncompetitive exclusive savings products to customers who hold a 123 Current Account or Credit Card. Their latest exclusively awful product is a three-year fixed rate account paying 2.1% on balances between £500 – £20,000. What makes it all the more perverse is that you can earn  3% (variable rate) on balances between £3,000 – £20,000 in the Santander 123 Current Account.

You can earn 2.65% on Shawbrook Bank’s three-year fixed rate savings account, but it does require an opening balance of £5,000. Vanquis Bank pays 2.6% on their three-year fixed rate account , with an opening balance of £1,000.

As a 123 Current Account customer, I find it rather insulting that Santander think I won’t bother doing some research to find the highest paying saving account, but I’ll just assume that Santander is offering existing customers a higher rate of interest than they can find with another provider.

The sad thing is that Santander probably wouldn’t keep up these pitiful offerings if some customers didn’t go for  them.

Interest rates correct on 4 December 2013.