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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    This account has been withdrawn from the market by Santander and is no longer available for new applications (existing accounts are unaffected).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 2
    • Grimbal
    • By Grimbal 14th Jul 10, 8:01 PM
    • 2,306 Posts
    • 3,431 Thanks
    Grimbal
    My Dh has this a/c & they are pretty clear that the interest drops to 0.1% in only the month that the deposit terms are not met (i.e <£100 or >300)

    from their website:
    "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."
    "Science is a wonderful thing if one does not have to earn one's living at it" Einstein 1951
    • donkingkong
    • By donkingkong 15th Jul 10, 1:15 AM
    • 121 Posts
    • 50 Thanks
    donkingkong
    Does interest on money contribute towards the 50k limit on this account or is the 50k limit for money actually paid in?
  • CLONNEN
    For paying the standing order from a non-Santander account use Sort Code 090000 Account No. 00050005 and use your Reference No (appears on your paperwork as account number). It consists of a letter of the alphabet followed by 8 digits followed by the first three letters of your surname. eg. If you are called John Smith you might have reference R12345678SMI

    Hope this helps!
  • CLONNEN
    Sorry the above info only relates to the Super Fixed Rate Monthly Saver of theirs I think.
    • donkingkong
    • By donkingkong 31st Jul 10, 11:18 PM
    • 121 Posts
    • 50 Thanks
    donkingkong
    Does interest on money contribute towards the 50k limit on this account or is the 50k limit for money actually paid in?
    Originally posted by donkingkong
    Any have any ideas on this one. Just wondering if the account "matures" as soon as it hits £50k or if you can no longer pay in money but the capital continues to earn interest.
  • BALLY
    I work for santander and i opened one of these the other day with 5k and 300 SO, the terms on the 2nd page it just says they have the right to close the account if you overfund the account.

    To my knowlage you cannot add it to ur onnline banking, branch tried, i also called up IBanking team, they couldnt then I tried myself in work and I couldnt add it!
    • owains
    • By owains 16th Aug 10, 8:29 AM
    • 281 Posts
    • 59 Thanks
    owains
    Just thought I'd post an update. I transferred an additional £5000 into my account last month, and confirmed in my local branch that my account was still operating. They were unable to give me any information about interest reverting back to the higher 5% rate, saying that it was all calculated automatically at the end of the financial year. So... fingers crossed until then I guess!
  • Essex123
    If they don't close the account, they have to pay you 5% per the terms of the account
  • pazza2000
    If they don't close the account, they have to pay you 5% per the terms of the account
    Originally posted by Essex123

    Any update on the above??

    I am keen to 'over pay' although i am concerned my account will be cancelled and £300pm @ 5% is better than nothing.
    • xiox
    • By xiox 10th Oct 10, 11:01 AM
    • 74 Posts
    • 19 Thanks
    xiox
    I see they ask for the standing order to be between the 2nd and 21st of the month. I wonder whether the overpayment would have to be payed in by the 21st, or whether this is just to ensure that any S/O is payed in during the month when there are several bank holidays near the end of a month.
  • pazza2000
    Any update on the above??

    I am keen to 'over pay' although i am concerned my account will be cancelled and £300pm @ 5% is better than nothing.
    Originally posted by pazza2000

    Any update with this... still none the wiser. Would love to over pay although don't want to forfeit the 5% for the rest, or even worst, the entire year
  • Hodlaw
    I have followed this thread with a great deal of interest. Having started a first time saver with Santander and subsequently re-reading the documents I spotted the loophole referenced to above regarding overpaying. Over the past week I have been in and out of my local branch speaking to a number of different representative from the bank to enquire into the wording of the documents and the clear contradiction at the centre of the terms and conditions.

    I am afraid to say that after two hours in the branch today in which I finally was handed a phone and given the number of a senior manager at head office. The line from the bank is that they would not honour any individual overpaying into this account and would look to close the account directly.

    That said; in the perverse nature of my meeting with the bank this morning. Which concluded with me sitting in the branch mangers chair speaking to head office while a small gang of Santander employees sat in the customer chairs waiting for me to tell them their own banks official line. On standing to leave the room one employee commented that he have never heard the bank close an account on these grounds and would be opening and overplaying into an account straight after our conversation.

    Read into that what you will? Personally I am going to opt not to overpay as it would involve touching a number of over savings accounts which while not paying 5% are turning over a relatively strong yield. However if you wanted to risk it I have a very strong feeling that you would get away with it without the bank even knowing.
    Last edited by Hodlaw; 28-10-2010 at 10:17 PM.
    • owains
    • By owains 29th Oct 10, 2:23 PM
    • 281 Posts
    • 59 Thanks
    owains
    Just thought I'd post an update. I transferred an additional £5000 into my account last month, and confirmed in my local branch that my account was still operating. They were unable to give me any information about interest reverting back to the higher 5% rate, saying that it was all calculated automatically at the end of the financial year. So... fingers crossed until then I guess!
    Originally posted by owains
    Not sure if it is of any use... but I haven't heard anything from Santander about the additional £5000 deposit I made in July. So, I'm assuming that I only incurred the interest rate penalty for that month and it has since reverted back to the higher 5% rate. However, as I said previously, I have been unable to confirm this.
  • BigCat9101
    Help Please
    Hi,

    Please can someone confirm that this account is open for new business. After clicking on the apply now button it says sorry page not available - would be really grafeful for any responses. I have my fingers crossed it is allowing new people as it were as I have been watching this account for many months and only now have a certain amount to deposit.

    Many Thanks
    • xiox
    • By xiox 3rd Nov 10, 9:07 AM
    • 74 Posts
    • 19 Thanks
    xiox
    Hi,
    Please can someone confirm that this account is open for new business. After clicking on the apply now button it says sorry page not available - would be really grafeful for any responses. I have my fingers crossed it is allowing new people as it were as I have been watching this account for many months and only now have a certain amount to deposit.
    Originally posted by BigCat9101
    You have to apply in-branch for the account. The website implies you can apply by clicking on apply, but it doesn't let you. As far as I know it is still available.
  • housesitter
    TheJimster: is your account still alive and well ?
  • sveika
    Can I ask how can you pay in £40k without the bank even noticing that? By cheque? Thanks.
  • preston87
    This works. I opened a first home saver in March 2009 and deposited 45k in the first month. Each month after I deposited £100. In March 2010 i got 5% interest on the full balance for 11 months. The lower rate of interest only applied to the month in which I overpaid.
    • apt
    • By apt 10th Nov 10, 10:48 AM
    • 3,027 Posts
    • 1,688 Thanks
    apt
    That's a good move in the short term, but paying in £45,000 will cutdown the period you can hold this account because of the £50,000 limit.
    • donkingkong
    • By donkingkong 10th Nov 10, 7:10 PM
    • 121 Posts
    • 50 Thanks
    donkingkong
    That's a good move in the short term, but paying in £45,000 will cutdown the period you can hold this account because of the £50,000 limit.
    Originally posted by apt
    @ £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.
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