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  • FIRST POST
    • Lollobrigida
    • By Lollobrigida 10th Jun 17, 12:28 AM
    • 31Posts
    • 5Thanks
    Lollobrigida
    Hanley Economic Building Society Home Deposit Saver
    • #1
    • 10th Jun 17, 12:28 AM
    Hanley Economic Building Society Home Deposit Saver 10th Jun 17 at 12:28 AM
    I find this deal very interesting:
    Hanley Economic Building Society
    Home Deposit Saver


    2.85%
    variable rate
    money.comparethemarket.com/savings-accounts/

    I know it is only for 33k, but it is still very good deal. Is there a catch?
Page 1
    • elephantrosie
    • By elephantrosie 10th Jun 17, 12:30 AM
    • 329 Posts
    • 81 Thanks
    elephantrosie
    • #2
    • 10th Jun 17, 12:30 AM
    • #2
    • 10th Jun 17, 12:30 AM
    could we withdraw the money from the account if not to purchase a property?
    Getting bored of my 9 to 5 job.
    • eskbanker
    • By eskbanker 10th Jun 17, 12:44 AM
    • 4,990 Posts
    • 4,726 Thanks
    eskbanker
    • #3
    • 10th Jun 17, 12:44 AM
    • #3
    • 10th Jun 17, 12:44 AM
    Various strings attached, as per http://www.thehanley.co.uk/savings-accounts/:
    The account can only be opened in person by visiting one of our branches and!is only available to customers who are saving for a deposit on a home.
    <snip>
    Instant access is permitted penalty free providing the funds are withdrawn for a house deposit linked to a mortgage with The Hanley.
    • bowlhead99
    • By bowlhead99 10th Jun 17, 2:43 PM
    • 6,470 Posts
    • 11,440 Thanks
    bowlhead99
    • #4
    • 10th Jun 17, 2:43 PM
    • #4
    • 10th Jun 17, 2:43 PM
    If you just wanted to take the money out and not get a mortgage with them, the access penalty is 180 days interest.

    But still, if you put £30k in there for a year and a half, you would get a penalty of only the last half-year interest so you'd get to keep a full year's interest which is 2.85% of the £30k although taking you a year and a half to get it. Effective rate of 1.9% per year.

    Similarly after two and a half years you'd lose the last half year interest so you'd get to keep two years' interest (1.0285^2) which is 5.8% of the £30k. Getting 5.8% after two and a half years is a compound annual rate of about 2.3%.

    So, a very decent rate on that sort of money, compared to alternatives. Some places make you commit five years to get less than 2.3%. The government guaranteed growth bonds make you commit three years and only pay 2.2%, and only on £3k not £33k!

    Needing to get a branch appointment (in the midlands) to open the account would be the sticking point for people who aren't local.

    And, saying you were going to use it for saving up to buy a house, if you in fact already had a house and they credit checked you and noticed you have a mortgage. But would they credit check you on a savings account other than the basic ID check? Who knows.

    I imagine the first person that uses it for a large amount of money without any intention of saving up for a Hanley mortgage and posts about it here, will cause the thread to gradually go viral, Martin to stick it in a 'loophole of the week' article circulated to 10 million email recipients, and the building society slashing the rate, lowering the cap, or pulling the deal for new customers.
    • badger09
    • By badger09 10th Jun 17, 2:54 PM
    • 5,066 Posts
    • 4,263 Thanks
    badger09
    • #5
    • 10th Jun 17, 2:54 PM
    • #5
    • 10th Jun 17, 2:54 PM
    Hanley is less than an hour's drive for me.

    Shall I start the stampede?
    • Lollobrigida
    • By Lollobrigida 10th Jun 17, 3:12 PM
    • 31 Posts
    • 5 Thanks
    Lollobrigida
    • #6
    • 10th Jun 17, 3:12 PM
    • #6
    • 10th Jun 17, 3:12 PM
    Hanley is less than an hour's drive for me.

    Shall I start the stampede?
    Originally posted by badger09
    I think you should start from thanking me
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