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

edited 21 January 2010 at 3:20PM in Savings & Investments
222 replies 41.2K views
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  • Changed by Royal Decree to Stonehenge as part of the 2012 Olympic Games. The company that built Stonehenge won the naming rights after pledging to sponsor a large part of the games.

    There isnt a city there.
    Just some rock lol
    I think Might open one of these, I understand its branch only but can it be viewed online?

    Also, can you operate Santander accounts using an Alliance and Leicester login?

    Any ideas on this?
    ...
  • keet83keet83 Forumite
    226 Posts
    stonehenge is actually bigger than you'd expect, it is not just that pile of stones on a hill, the stones go all through the town they just never really show it on TV or books
    [STRIKE]Beggars cant be choosers, but savers can![/STRIKE]
    That used to be the case :mad:
  • Lukehluke wrote: »
    There isnt a city there.
    Just some rock lol



    Heightened security fears from the Real Druids (Paramilitary group) required that the Stonehenge capital was build underground. It never appears on maps or as mentioned, television. It's one of the questions on QI.
  • The wrote: »
    Do you get paid monthly interest?

    Where is the interest paid into?

    Can i get the interest paid into my current account i.e. How it works with bonds?
    Further Information

    Interest is calculated on the daily balance of the account, and is paid annually on the anniversary of account opening. For example, if you saved £100 per month for the whole 12 months term of the account, you will get back your deposits totaling £1,200 (12 x £100), and will have received in total approximately £32.50 gross interest during the year (provided no withdrawals are made during the year).

    AER stands for Annual Equivalent Rate and shows what the interest rate would be if we paid interest and added it to your account each year. The gross rate is the interest rate we pay before income tax is taken off.

    Rates effective from 1st March 2009.

    Does anyone know if you can use this account as a JOINT account? My girlfriend and myself were looking for an account to save for our first house deposite.
  • edited 19 January 2010 at 11:53AM
    thepearcethepearce Forumite
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    edited 19 January 2010 at 11:53AM
    mrwozat wrote: »
    Does anyone know if you can use this account as a JOINT account? My girlfriend and myself were looking for an account to save for our first house deposite.
    Yes you can, so long as you are both 16-35.
  • Hi All,

    I have just applied for a First Home Saver (spiecal Issue 1) in the branch and i have discovered a standing order will need to be set up to statr the month after you open the account, and will be paid between the 2nd and 21st of eevry month.

    I can not see this mention on their website so just check your T&Cs

    Many Thanks,
    Moneysavingaddict07
  • ses6jwg wrote: »
    I think Might open one of these, I understand its branch only but can it be viewed online?

    Also, can you operate Santander accounts using an Alliance and Leicester login?

    I opened one of these in a Santander branch a few days ago. Very knowledgeable lady made the process a breeze. In that process I have learnt that:

    1. No, it cannot be viewed online, or over the phone, or any way other than by your quarterly postal statements or in branch. My helpful lady tried to link my First Home Saver to my online banking for me, but the system would not allow it.
    2. As I hold both Abbey/Santander and A+L accounts I can confirm that the two online banking systems are totally separate at present. I cannot see my Santander accounts via A+L online banking, nor vice-versa.
  • mrwozat wrote: »
    Does anyone know if you can use this account as a JOINT account? My girlfriend and myself were looking for an account to save for our first house deposite.

    The T+Cs say that up to four of you can jointly operate the account, on an all-to-sign basis (unless you all authorise fewer-than-all to sign). All the account holders must be between the ages of 16 and 35. I'm reading this off my hard-copy T+Cs given to me in branch.
  • Gordon_the_MoronGordon_the_Moron Forumite
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    Odd, surely you need to be 18 to get a mortgage so why would they let a 16 year old have this account?
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

    If you do like it please hit the thanks button.
  • This account says that the maximum balance allowed is £50K and that any monthly payment above £300 will give rise to a 0.10% for that month. Yet, would it be possible to make an initial payment of say £40K and then continue with £300 the following months. That way, you would get 5% interest on a much higher balance. You would then close the account after about a year, just before the total balance reaches £50K.

    I read in one of the earlier posts that Santander would close the account if that was done because it's a breach of their terms, but looking at the application form, there is no mention that paying over £300 in one month is a breach. It simply says that the interest rate would be lower (0.1%) for that month.

    Would I be able to get away with this strategy?
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