Update! Santander First Home Saver Account: 5% on up to 50k savings (up to 35 only)
Comments
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donkingkong wrote: »@ £100pcm it'd be just over 4 years before you hit the £50k limit. Guess it depends on when people want to use the cash.
In this example, you will actually hit £50k on the second anniversary/interest payment date:
£45k initial investment
£2.4k monthly payments
£1.8k interest year one (assuming 20% tax)
£1.9k interest year two (assuming 20% tax)
Total £51.1k
I think this strategy is good - after all, who knows what the savings market will look like in two years.
In any event, who knows whether Santander will actually take action once the £50k limit is reached... :rotfl:0 -
In this example, you will actually hit £50k on the second anniversary/interest payment date:
£45k initial investment
£2.4k monthly payments
£1.8k interest year one (assuming 20% tax)
£1.9k interest year two (assuming 20% tax)
Total £51.1k
I think this strategy is good - after all, who knows what the savings market will look like in two years.
In any event, who knows whether Santander will actually take action once the £50k limit is reached... :rotfl:
Does the annual account interest definitely count towards the account balance or can you have interest paid into another account?0 -
housesitter wrote: »[Deleted User]: is your account still alive and well ?
Yes - my account is still alive and well and paying 5% at >40k. Santander's official line is they 'may' close your account if you overpay. But for once their own incompetence works agaisnt them.
For the worriers suggesting you'll only get 0.1% - that is for the month of the overpayment only. The account terms say after that month you're back to the usual rate.
I can't believe this loophole isn't all over the internets. 5% is as good as it gets in this climate.0 -
Can I ask how can you pay in £40k without the bank even noticing that? By cheque? Thanks.
You can do a BACS transfer once you have the account payment details. Then a week later go in to a Santander branch and ask for an account balance print out to confirm the money has landed safely.0 -
Hi guys,
Just to let you know, this idea does not work, yes, after speaking to a sales rep, you could dump a huge wad of money in, however, you only actually gain money on the amount you put in each month, so 300 max, you do not gain interest on the total account balance. Therefore that money will accumulate no interest what so ever. All you will achieve is no interest on any of the money at all for that month.0 -
Boseley, are you saying that nobody is earning any interest on their initial (up to) 5000-pound deposit as well?0
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Hi guys,
Just to let you know, this idea does not work, yes, after speaking to a sales rep, you could dump a huge wad of money in, however, you only actually gain money on the amount you put in each month, so 300 max, you do not gain interest on the total account balance. Therefore that money will accumulate no interest what so ever. All you will achieve is no interest on any of the money at all for that month.
Wow... can anyone else confirm this? I have deposited an additional £5,000 in my account, which would mean a significant loss in terms of potential interest. I'm sure someone deposited £40,000... they could be in for quite a shock!0 -
Hi guys,
Just to let you know, this idea does not work, yes, after speaking to a sales rep, you could dump a huge wad of money in, however, you only actually gain money on the amount you put in each month, so 300 max, you do not gain interest on the total account balance. Therefore that money will accumulate no interest what so ever. All you will achieve is no interest on any of the money at all for that month.
Rubbish, it just shows the lack of knowledge of many bank staff.
Either:
(1) They accept the deposit and pay you 5% on the whole balance; or
(2) They close the account.
From people's experiences in this thread, it looks as though they tend to do (1).0 -
rb10 is 100% correct......
you get 5% on the whole balance.....0 -
Taken from their website (can't post links yet!):
"You will receive a lower rate of 0.10% gross/AER when you pay in under £100 or over £300 in any calendar month, but for that month only" so if you put in a large lump sum other than the initial start up amount, you will experience a 1 month drop in interest.
"Interest is calculated on the daily balance of the account, and is paid annually on the anniversary of account opening" not just the amount you paid in.0
This discussion has been closed.
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