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

Sillychuckie

Gambit wrote: »

Has the rate always been 5% Sillychuckie?

No. When the account was introduced, it was an 8% offering. It then dropped as base rates did, offering 7% and 6% at one stage, before settling at 5% most recently.
Whatever the rate, it has always been well above instant access savings rates at the same time.

tripleblack

So if you've had a mortgage before you cannot apply? Presume this is the same if you've had a mortgage in 'joint' names?

If so...gutted, was a bit excited by this too

tripleblack

The wrote: »

BECAUSE you can start saving at that age then take out the mortgage 2 years later the point of the account is not to take out a mortgage straight away !!!!!!

Dude, no offence but i think you need to chill. You're response is correct and helpful but your tone sounds like you're really putting yourself out, if you are why bother posting?

chaotic_j

I've applied for one of these, took quite a while to set up (there was also a big queue of grumbling people and very few staff around..) but relatively straightforward. In terms of ID I just showed them my photocard driving license and nothing else was required.

Out of interest, if one was to purchase a house 100% in cash after taking this account out, would one still be able to carry on having this account or would that mean you effectively would then be breaking the terms and conditions as you wouldn't be a first time buyer any more? Or would the fact you hadn't taken out a mortgage as you'd purchased 100% in cash still make you eligible for this account?

I asked how long the mortgage appointment lasts when you close the account and they told me an hour and a half.. when I close this account I basically have no real intention of getting any kind of mortgage let alone one with Abbey/Santander so does anyone have any tips on the best way to make the mortgage appointment as short a possible?

My initial thoughts were just to go through the rigmarole and when they come up with a mortgage suggest that it isn't competitive and that I'd like to consider other mortgage providers?

Rosebud24

chaotic_j wrote: »

I asked how long the mortgage appointment lasts when you close the account and they told me an hour and a half.. when I close this account I basically have no real intention of getting any kind of mortgage let alone one with Abbey/Santander so does anyone have any tips on the best way to make the mortgage appointment as short a possible?

My initial thoughts were just to go through the rigmarole and when they come up with a mortgage suggest that it isn't competitive and that I'd like to consider other mortgage providers?

If you tell them it's not competitive you're giving them something to play with.

I would just be frank with the mortgage adviser and tell that straight away that you do not want a mortgage. If you feel uncomfortable doing this, perhaps tell them that you originally intended to get a mortgage but your circumstances have changed. They may not like the fact that they can't try and sell you a mortgage, but they may also appreciate your honesty as they will not be wasting their time either!

jhs2lq

I'm currently looking at opening this account. However I don't have a cheque book so would I be able to open the account and then do a bank transfer a few days after/at time of opening of £5k and not be penalised for it. Failing that what are my options? Thanks.

chaotic_j

Rosebud24 wrote: »

They may not like the fact that they can't try and sell you a mortgage, but they may also appreciate your honesty as they will not be wasting their time either!

I'll do that then thank you! I'll obviously still have to get it booked etc but I'll be frank with them when I'm there and see what happens.

jhs2lq wrote:

I'm currently looking at opening this account. However I don't have a cheque book so would I be able to open the account and then do a bank transfer a few days after/at time of opening of £5k and not be penalised for it. Failing that what are my options? Thanks

I asked if I could make the initial deposit with a bank transfer and they said that was fine.. I haven't done it yet as the money has to go from my Citibank savings account to Halifax current account then to Santander First Home Saver..

The documentation they gave me stipulates that the following month you have to have your £100-£300 deposited between the 2nd-24th of that month so as long as you open and have your initial deposit in before the end of the month I think you should be OK etc..

But yeah seems that bank transfer is OK.. hope this helps.

skintstinks

i went into santander to open one of these accounts last week. the lady dealing with me had no idea what i was talking about when i informed her i wanted to open a first home saver account and told me the only savings account they offered had a 4% interest rate.
after i explained the account to her she went to speak to a mortgage adviser for help. she then came back and told me that he told her that that was an old type of savings account and was no longer in operation.
i then had to argue with her that the account was not only advertised on this website but also on the santander website.
we had to go onto the santander website in the branch for me to show the 'adviser' the account in question. i finally managed to open the account with the stated rate of 5% but it was a struggle.
i would advise anyone thinking of opening one of these accounts not to be fobbed off by advisers trying to make a better deal for the bank. if this was a genuine mistake then i think santander should be embarrased that i knew more about their products and services than both a savings and mortgage adviser...

anselld

skintstinks wrote: »

if this was a genuine mistake..

We are Santander! All mistakes are genuine. :rotfl:

Former_MSE_Dan

MSE Guy has now written a blog about this too!

http://www.moneysavingexpert.com/team-blog/