MSE News: Savings loophole allows under-35s to earn 5%

archangelrich

anticlaus105 wrote: »

Anyone know when interest is due to be paid on this account?

I'm advised on the anniversary of opening. But your guess is as good as mine!

7sefton

anticlaus105 wrote: »

Same here. Opened one in Jan. I got a 1 page half filled A4 printout. No mention of paying in between certain days. I have stuck to 1 payment per calendar month usually on the 1st. I hope this isn't going to turn into another shabby Abbey story.

I'm really alarmed by this. I've had my account for 9 months and have been paying in £300 on the 1st of every month (trying to get the maximum interest). Where is this condition mentioned, because I can't see anything on their website or in the info they gave me upon opening... Please post any details you have, because this is really annoying!

rb10

archangelrich wrote: »

I opened this account about a fortnight ago, and have had problems ever since. The woman I spoke to in branch told me it's a fixed 12 month account, meaning I can only pay in for 12 months. This isn't set out in the T&C of the account (the fact you're only meant to pay in £300 a month, so even allowing for the maximum £5000 deposit, isn't ever going to reach the maximum permitted of £50k), but everyone in the branch was adamant it was only for 12 months.

The people in the branch are wrong. I believe that they don't open First Home Saver accounts very often, so they are probably just unclear on the account details.

The account lasts for as long as you want it to last. Although this isn't specifically covered in the T&Cs:

1) It would have to say if there was a fixed term to the account, and
2) It says 'interest [...] is paid back into the account on an annual basis on the anniversary of account opening'. 'On an annual basis' says that it's possible to get several interest payments, one per year. Hence you have to be able to keep the account for more than a year.

7sefton wrote: »

I'm really alarmed by this. I've had my account for 9 months and have been paying in £300 on the 1st of every month (trying to get the maximum interest). Where is this condition mentioned, because I can't see anything on their website or in the info they gave me upon opening... Please post any details you have, because this is really annoying!

I have two pages for my account - one with general info, and one with the T&Cs.

The general info page says:

Santander wrote:

Your standing order will need to be set up to start the month after you open the account, and will be paid between the 2nd and 21st of each month

ses6jwg

I work in branch and there is no anniversary it is an ongoing variable rate you will recieve an annual statement in April that it is.

Should you wish to check the balance you take the confirmation letter into branch. There is no internet banking with the FHS.

thenudeone

Sillychuckie wrote: »

Whilst it does make for a better headline, I'd hardly call this a 'loophole'.
SC

It's pretty clear that this is a loophole as I understand it. i.e. something which is technically allowed under the terms and conditions but which clearly falls outside the remit as originally intended, which is quite explicity stated as providing a savings vehicle for prospective homeowners to save for a deposit.

twinkle162

I've been watching this for some time, decided it's the best savings option bar the customer service and lack of online banking!

How do you check the interest rate ?less than the 5% easily...

Intending to try and make an appointment next week.

beefturnmail

It was certainly not in any t & c that I was given when I opened the account, that the standing order must take place between the 2nd and 21st. I have been paying in £300 per month on the 1st since June. No way they're getting out of paying the interest because I haven't been paying it in some ridiculous window, which was never mentioned when I opened the account! Has anyone actually had any interest paid on this account yet?

transparent_opacity

An update on this one for account holders. It appears that the complete lack of product knowledge on Santander's part regarding First Home Saver's (as I experience when opening the account) played in my favour today.

I walked into the Preston branch, asked to withdraw all but £1 from the account, and they handed over a cheque! No account closure, no interview with the mortgage advisor. The cashier was unsure when I mentioned that I thought I had to close the account to withdraw (the queue for the advisor was long, so I only happened to try the desk by luck) but she said she'd give it a go, and the system let her process the withdrawal. Brilliant!

Sillychuckie

I noticed this was no longer available on the Abbey site, so wanted to confirm the interest rate I was getting. I'm still paying in £300 a month and have had this account since day 1 (when it paid 8%).

I messaged Abbey, and their replies have been:

---

Thank you for your email.

I can confirm this is a First Home Save Account and the current Interest Rate on this account is 0.1% Gross and 0.08% Net. I hope this helps.
If you have any further queries please do not hesitate to contact us via secure email. Regards, Santander Customer Service

---

:eek::eek::eek::eek::eek:

I replied saying 'er - want to re-check?' (along those lines), pointing out it was a First Home Saver 'SPECIAL ISSUE 1', which paid 8% for a while, then 6.5%, then 5%, and that I have had it since Dec 2008.
Their next reply said:

---

Thank you for your email.

Your First Home Saver received 5% Gross AER interest for the first 13 months that the account was opened.
After the account had been opened for more then 13 months, the bonus rate had expired on the account and thus is receiving 0.1% Gross AER interest.
A full break down of the accounts terms and conditions can be found on our website at https://www.santander.co.uk.
If you have any further queries, please feel free to contact us back. Regards, Santander Customer Services

---

Can someone please confirm that this Santander person doesn't have a clue? The account has no 'bonus rate'.

I don't have any printed Ts+Cs - the branch never had any when I opened the account because they hadn't been sent them yet (I was one of the first to open it).
I also notice on this thread for the first time that some peoples t's and c's say their monthly deposit has to be between the 2nd and 21st of each month.
Mine has always been on the 1st day of each month (since day 1) and never changed.
My interest rate seems to match the 5% though according to statements.

Very confusing.
Anyone able to confirm what Santander are saying?

This is the only info I can find online about it these days...

http://www.santander.co.uk/csgs/Satellite?pagename=Abbeycom%2FGSPageDetail%2FWC_ACOM_PrintB&canal=CABBEYCOM&empr=Abbeycom&leng=en_GB&cid=1210611105365

SC.

rb10

Sillychuckie, I have seen other people on these forums who have been told similar things by Santander.

People who work for Santander have indicated that they never used to open many of these accounts, so it is likely that staff product knowledge is poor.

I have a paper copy of the T&Cs for 'First Home Saver (Special Issue 1)' here. There is nothing that I can see that restricts the high interest rate to the first 13 months. The main mention of interest is:

5. Interest payment
First Home Saver (Special Issue 1) offers a variable rate of interest which is paid back into the account on an annual basis on the anniversary of account opening.

The link that you gave also confirms that no mention has been made of 13 months.

I expect that the people who you have spoken to at Santander are getting it confused with the Fixed Rate Monthly Saver, which runs for 13 months before the interest rate drops to 0.1%.