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  • FIRST POST
    • TheJimster
    • By TheJimster 12th Jun 10, 2:34 PM
    • 387Posts
    • 112Thanks
    TheJimster
    Update! Santander 5% First Home Saver Account: Account no longer available
    • #1
    • 12th Jun 10, 2:34 PM
    Update! Santander 5% First Home Saver Account: Account no longer available 12th Jun 10 at 2:34 PM
    UPDATE: 9 SEPTEMBER 2011
    This account has been withdrawn from the market by Santander and is no longer available for new applications (existing accounts are unaffected). The interest rate is still 5% and will remain so until further notice but is likely to fall steadily. I'll post back here if I notice it dropping.

    Original post follows:

    Further to the discussions (here:
    http://forums.moneysavingexpert.com/showthread.php?p=27583661)

    I have managed to squirrel away about 40k in my Santander First Home Saver account at 5%, despite the fact that you're supposed to be restricted to a 5k initial deposit plus 300/month.

    I did this by opening the account with the minimum deposit of 100, and then towards the end of the month paying in a 40k deposit. For the rest of that month only you get 0.1% (hence paying late in the month) and then 5% interest going forwards.

    This is within the rules, which say that you should save up to 300/month but that any month in which you pay in more than 300 will only get interest at 0.1% for that month only.

    Go here for the account: http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABB EYCOM&cid=1210611105334&empr=Abbeycom&leng=en_GB&p agename=Abbeycom%2FPage%2FWC_ACOM_TemplateB2

    Note that:
    (i) you are supposed to be a first-time home buyer (but they don't check, other than making you sign a declaration that you don't own a home - but it would almost certainly be fraud to make a false declaration)
    (ii) you can only get the account if you are under 35 at the date of opening (the account doesn't then close when you reach 35, of course)
    (iii) you need to do a 'mortgage interview' before closing the account and withdrawing cash - this just means visiting a branch for a quick chat, no credit search required, and no need to take out a mortgage (just say you're not interested)
    (iv) you cannot make partial withdrawals - to get money out you need to close the account completely and
    (v) Santander say they "may" close the account if you pay in more than 300 in a month (but they haven't with my account!)
    (vi) maximum account balance is 50k (although there is a chance this will not be enforced...)

    *Further edit - 13 November 2010* I can confirm that this loophole still works and is definitely available. The loophole is not really 'in the spirit' of the savings account, but it's definitely within the letter of the rules and in practice it works so if you're under 35 I say go for it.
    Last edited by TheJimster; 09-09-2011 at 12:18 AM.
Page 1
    • antispam246
    • By antispam246 12th Jun 10, 3:10 PM
    • 875 Posts
    • 725 Thanks
    antispam246
    • #2
    • 12th Jun 10, 3:10 PM
    • #2
    • 12th Jun 10, 3:10 PM
    Can you verify you're actually get 5% the following month (I know it maybe too early too tell, unless you've had the account awhile)? If this is the case, that's bloody fantastic. Hell, I'd be able to clean up my multiple accounts and consolidate for once.

    • TheJimster
    • By TheJimster 12th Jun 10, 9:31 PM
    • 387 Posts
    • 112 Thanks
    TheJimster
    • #3
    • 12th Jun 10, 9:31 PM
    • #3
    • 12th Jun 10, 9:31 PM
    The interest rate on the account is 5% so that's what's being paid. Santander's only other option is to close the account. In any month with overpayments the interest drops to 0.1% but then reverts to 5%.
    Last edited by TheJimster; 13-06-2010 at 1:02 PM.
  • fairmorn308
    • #4
    • 13th Jun 10, 1:34 PM
    • #4
    • 13th Jun 10, 1:34 PM
    I have been looking at this. I currently bank with A+L which are part of the santander group. Would i beable to access this account within my A+L Account screen?
  • Essex123
    • #5
    • 13th Jun 10, 6:18 PM
    • #5
    • 13th Jun 10, 6:18 PM
    No. The ex-Alliance & Leicester systems are still seperate to Santander's. It might be possible once A&L Current Accounts are migrated across to Santander's platform.
    • thepearce
    • By thepearce 13th Jun 10, 6:34 PM
    • 2,097 Posts
    • 11,602 Thanks
    thepearce
    • #6
    • 13th Jun 10, 6:34 PM
    • #6
    • 13th Jun 10, 6:34 PM
    Interesting - I saw it mentioned but quickly countered with the threat of account closure.

    Actually - over-funding might be a good way around bothering with a mortgage interview when you want your money back (if they close the account).
    • owains
    • By owains 7th Jul 10, 7:38 AM
    • 281 Posts
    • 59 Thanks
    owains
    • #7
    • 7th Jul 10, 7:38 AM
    • #7
    • 7th Jul 10, 7:38 AM
    Can you verify you're actually get 5% the following month (I know it maybe too early too tell, unless you've had the account awhile)? If this is the case, that's bloody fantastic. Hell, I'd be able to clean up my multiple accounts and consolidate for once.
    Originally posted by antispam246
    The interest rate on the account is 5% so that's what's being paid. Santander's only other option is to close the account. In any month with overpayments the interest drops to 0.1% but then reverts to 5%.
    Originally posted by TheJimster
    As far as I know, interest is only paid into your account at the end of the year. So, have you confirmed that your rate has reverted back to the standard 5% yet? Have you spoken with anyone from Santander about this?

    Has anyone else had any sucess with paying in significantly more than their 300 allowance in one month?

    I was hoping to deposit about 4,000 into my account but was worried about them closing it. But, if they haven't kicked up a fuss about 40,000, I shouldn't have any problems!
    • owains
    • By owains 9th Jul 10, 5:19 PM
    • 281 Posts
    • 59 Thanks
    owains
    • #8
    • 9th Jul 10, 5:19 PM
    • #8
    • 9th Jul 10, 5:19 PM
    Has anyone else had any sucess with paying in significantly more than their 300 allowance in one month?
    Originally posted by owains
    Has anyone else tried this?!
  • withnell
    • #9
    • 10th Jul 10, 10:58 AM
    • #9
    • 10th Jul 10, 10:58 AM
    I have been looking at this. I currently bank with A+L which are part of the santander group. Would i beable to access this account within my A+L Account screen?
    Originally posted by fairmorn308
    You can't access the account online from within the Santander account screen! I can't remember quite the term they use - they send you statements but its not available online.
    • **woody123**
    • By **woody123** 10th Jul 10, 1:55 PM
    • 520 Posts
    • 191 Thanks
    **woody123**
    You can't access the account online from within the Santander account screen! I can't remember quite the term they use - they send you statements but its not available online.
    Originally posted by withnell
    Just to add, that you can check your balance over the telephone.
    • owains
    • By owains 12th Jul 10, 7:48 AM
    • 281 Posts
    • 59 Thanks
    owains
    Just to add, that you can check your balance over the telephone.
    Originally posted by **woody123**
    I haven't checked my balance since opening in April. Will it include any interest that year, or is that added in one payment at the end of the year? If the latter, is there actually any way to confirm interest is accumulating as expected following a large deposit?
    • dollywops
    • By dollywops 12th Jul 10, 8:16 AM
    • 1,555 Posts
    • 2,664 Thanks
    dollywops
    DD opened this account on Friday, depositing 5,000 with monthly payments of 300 to follow. When the advisor asked if she should set up the SO, I said not to bother and we would do it ourselves. Looking at the paperwork last night, the only details are a K account no, no sort code to set up the SO.

    Can anyone please advise how to set up the SO using internet banking using only the K no.
    • **woody123**
    • By **woody123** 13th Jul 10, 1:40 PM
    • 520 Posts
    • 191 Thanks
    **woody123**
    I haven't checked my balance since opening in April. Will it include any interest that year, or is that added in one payment at the end of the year? If the latter, is there actually any way to confirm interest is accumulating as expected following a large deposit?
    Originally posted by owains
    Interest will be added next april then in one payment.

    I'm afraid i don't know the answer to your last question.
    • intalex
    • By intalex 13th Jul 10, 2:19 PM
    • 297 Posts
    • 50 Thanks
    intalex
    Can anyone please advise how to set up the SO using internet banking using only the K no.
    Originally posted by dollywops
    From what I remember, it was a generic account number and post-code (best if you obtain this directly from Santander), with the K no. to be used as the reference on the SO.
    • intalex
    • By intalex 13th Jul 10, 2:22 PM
    • 297 Posts
    • 50 Thanks
    intalex
    is there actually any way to confirm interest is accumulating as expected following a large deposit?
    Originally posted by owains
    I wonder how a bank would react if one was to put in a request for a statement of accumulated interest as at a certain date. Anyone ever done this before?
  • Essex123
    If you go into a branch they may be able to tell you how much interest has accrued to date. I know other institutions can tell you this by doing a dummy closure transaction on the account.
  • housesitter
    Without that knowledge this account is a serious risk!!
    • neas
    • By neas 14th Jul 10, 12:26 PM
    • 3,657 Posts
    • 9,724 Thanks
    neas
    I used this account legit for saving (just 5k +300 per month)... i got the interest on closure... but you could find after a year of doing this you get 0.1% interest :P
    • intalex
    • By intalex 14th Jul 10, 12:52 PM
    • 297 Posts
    • 50 Thanks
    intalex
    I used this account legit for saving (just 5k +300 per month)... i got the interest on closure... but you could find after a year of doing this you get 0.1% interest :P
    Originally posted by neas
    Are you saying you only got 0.1% interest for the entire duration?
    • owains
    • By owains 14th Jul 10, 7:44 PM
    • 281 Posts
    • 59 Thanks
    owains
    Are you saying you only got 0.1% interest for the entire duration?
    Originally posted by intalex
    I hope not! I think the point intalex is making is that you wouldn't know until you wanted to close the account.

    Again, has anyone who has exceeded their 300 monthly allowance actually confirmed that they are getting the 5% interest rate that they expect?
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