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  • FIRST POST
    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    This account has been withdrawn from the market by Santander and is no longer available for new applications (existing accounts are unaffected).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.
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