Update! Santander First Home Saver Account: 5% on up to 50k savings (up to 35 only)

Hi just to confirm that I sent a secure message to Santander regarding the interest rate on the account after 12 months. Their initial response was it dropped to 0.1% however when I replied and pointed them in the direction of the webpage mentioned above and the T&C's I received when opening the account they apologised and stated that in fact it was still 5% until they decide otherwise.

I hope that provides clarification for everyone! However I am sure that Santander staff will continue to mis-advise customers.


Thanks

pazza2000 wrote: »

Is the general consensus that the 5% Int rate will eventally come to an end, and in the near future? I have been considering withdrawing my monies as I have another savings oppourtunity that will guarantee me just under 5% for 2 years.

No one knows, but I think most assume it will end sooner rather than later. 2 years is a long time.

You could perhaps put half of the amount in the near 5%, 2 year opportunity (what is this out of interest?) and leave the rest in the Home Saver.

edit: Just remembered that you can't make partial withdrawals so that wouldn't work.

Just to let people know that the account is still paying 5% as of 31/12/2011.

Page 10 of 14 about half way down:

http://www.santander.co.uk/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223418328271&cachecontrol=immediate&ssbinary=true&maxage=3600

For the above poster I think it is per calendar month but I suggest you check before acting on what I say. If you look a few posts above I posted a link to the account summary and on that it states 'month' as opposed to say every 30 days.

Just to let people know that the account is still paying 5% as of 17/101/2012.

Page 10 of 14 about half way down, Rates correct as of 3rd January 2012:

http://www.santander.co.uk/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223419040757&cachecontrol=immediate&ssbinary=true&maxage=3600

Thought I would recheck the amount the account was paying early having had 2 phone calls from Santander this week (my account anniversary month), first one telling me the rate would no longer be at the higher rate as "most" accounts have only a 12 month bonus, which led me to ask for the specific T&C that made that apply to this account, they eventually realised I knew more than them .

Then the second one telling me how I should really consider getting a mortgage at the moment to which I just :rotfl: saying I am quite happy with getting 5% and the outlook on house prices being down with the economy and Europe only likely to drag prices down further and although any increase in interest rates would mean higher mortgage costs they are more likely than not going to be more than offset by the fall in prices that any rise would cause given the level of personal debt.

As for the last question, interest is calculated on the daily balance and one would assume (but we know what assumption can make of you) that you would get part year interest paid, I don't recall seeing anything that said otherwise but as ever best you try to dig out the T&C's from when you opened the account just to be sure. No part withdrawals are allowed I know that for sure and it isn't a bond type account with a minimum term so I would say you would be safe to close it on a date other than the yearly anniversary.

Thanks for checking that the rate is still 5%!