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

edited 21 January 2010 at 3:20PM in Savings & Investments
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  • thepearcethepearce Forumite
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    My experience :

    When I heard about this I checked their website and it noted I could apply by phone. When I gave them a call they told me branch only. I was put through to my local branch to make an appointment (branch numbers are not listed on the website).

    After a few calls to reschedule the appointment I decided to go into branch and reschedule again. The latest appointment........ 3pm. Not exactly convenient to combine with work....ie the place where the money to save comes from. (They are open every second Saturday)

    The Personal Banking Adviser knew of the account and provided me with a printout of the terms and conditions (I'd found this by googling - not on the main abbey site, but elsewhere listed at 5.5%). I asked if it would be possible to have an account for me and for the wide but after consulting she decided not.

    As for the actual appointment....... that was fine and quick (not very impressed with the guy on the desk gesturing with his hand and saying something like "hang on, I'm busy" after being buzzed in.

    We'd taken a cheque book and ID (per the advice given previously). Minimum of details required and in 30 mins it was all done and dusted. Had to ask for the sort code & account number for the SO as all we were given was the savings account number (which apparently I should use as the reference).

    As is I guess usual in the 30 minutes there were "random" questions about if we travel much (sell the zero credit card), if we were insured, our current account...... but these were quickly skipped over.
  • someonesomeone Forumite
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    Was walking past on Wednesday, so went in to ask about this account, would have opened one on the spot if you could transfer the first deposit in but it had to be cash or cheque. Made an appointment for Saturday (today).

    Went in, took a little while to be seen. They asked about Travel (to sell insurance and credit card) and who you bank with ATM (to sell you a current account). I polity said if she gave me the leaflets I'll have a look at them when I'm home.

    The account is extremely good value, and is clearly designed as a large loss leader. It sounds like the rate has in the past followed the base rate / market so hopefully this will be good value for a couple of years.

    Online Banking
    As for online banking, the lady did something (she said it was a new system, she had here none card accounts added on the other day no problem) and gave me an ID number, will wait to see if anything comes in post.

    Loophole Description
    She did also mention that she had not opened one for a while, and this week she has opened three! She asked where I heard about it and I just said "the internet". I think its appropriate for MSE to describe it as a loophole as the rate is variable, they could change it any time and if a large percentage or people aren't looking for a mortgage in the end they might just pull the plug at the amazing rate.
  • chaotic_jchaotic_j Forumite
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    I telephoned Santander before going into town to open this account and I was told that the initial deposit could be made via Bank Transfer, I also confirmed this with the advisor at the Santander branch when I went down to open it.

    How come others here are saying that the initial deposit can only be made via Cheque or Cash etc?

    Hope my account gets opened OK! :(
  • someonesomeone Forumite
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    chaotic_j wrote: »
    I telephoned Santander before going into town to open this account and I was told that the initial deposit could be made via Bank Transfer, I also confirmed this with the advisor at the Santander branch when I went down to open it.

    How come others here are saying that the initial deposit can only be made via Cheque or Cash etc?

    It was just what I got told in branch ... maybe when they ain't too sure they say cash or cheque just in case.
  • So i've set up my account, Im handing the standing order into my bank tomorrow for £300 a month. If say....I did not have £300 in a month and wanted to deposit £200 how would I go about doing this?

    I only ask as the ladie who set up my account explained I would have to deposit the same ammount each month. From reading previous posts this does not seem to be the case. Maybe she was reffering to the standing order.

    Thanks for any help given. :)
  • someonesomeone Forumite
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    PawsPup wrote: »
    So i've set up my account, Im handing the standing order into my bank tomorrow for £300 a month. If say....I did not have £300 in a month and wanted to deposit £200 how would I go about doing this?

    I only ask as the ladie who set up my account explained I would have to deposit the same ammount each month. From reading previous posts this does not seem to be the case. Maybe she was reffering to the standing order.

    Thanks for any help given. :)


    You can edit the standing order so its less, you have to re edit it again for it to increase. This can be done via internet banking.
  • I opened my First Home Saver account toady. Similar to what was described in the moneysavingexpert blog post, I had some difficulty getting an appointment. First I called the national Santander line to ask if I needed an appointment, and was told I didn't; I just needed to show up at my local branch. So this morning I walked into my local branch at 9:00 and asked to open the account. I was told that I would need to make an appointment, and that the only times normally were Monday to Friday from 10:00 to 15:00, or every other Saturday morning. This pretty much makes it impossible for people with nine-to-five jobs to open an account on less than two weeks' notice!

    Instead of making an appointment I hopped on the bus and walked into a Santander branch in the city near where I work. I was seen right away and opened the account without any problems. The process took about twenty minutes. I was told that I could make the initial deposit by bank transfer instead of cheque, and was given the account number and sort code details.

    As other posters have noted, it's not clear whether it's possible to deposit more than £300 into the account on a given month. The brochure states, "If you pay in more than £300 or less than £100 in any calendar month you will receive 0.10% gross/AER (variable) on the whole balance for that month only," which seems to indicate that it's permitted (albeit penalized). On the other hand, the "Legal details" section of the same brochure states, "If you deposit more than £300 in a single month we reserve the right to close your account." I questioned the lady who saw me about this, and she couldn't provide any satisfactory answer.

    I really would like to deposit, say, £10,000 into this account so that I can get the 5% interest. Has anyone else received definitive word one way or another whether it's possible to overpay without the account being closed?
  • It seems my experience in opening this account has been broadly similar to everyone else...hassle to speak to the right person, but once there, easy!

    Went in to the big local branch on a Saturday morning, told that it would mean less waiting to come back a few hours later, so I do, wait 20 minutes, sit down in a nice booth with an assistant asking what account I would like only for them to have no knowledge of it! They go away, come back and say I need to open it with the specialist mortgage guy, who I need to book an appointment with in a week's time! Not exactly worth the wait. So, I went into a different branch, walked up to the normal counter and opened it there and then within 20 minutes! What a difference a branch makes!

    Only confusing thing is she seemed to think it was for 12 months only....not something I've seen anywhere else and not sure I believe her...has anyone else seen that this account reverts to a rubbish rate after 12 months?
  • khalidkhalid Forumite
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    I went to my local Santander last week (Monday 18th) to open a first home saver account. Had to return the next day, as an appointment was needed. Anyway, the guy took all my details but couldn't open the account as he was having problems with the system. He assured me that the account would be opened by the end of the day and that he would phone me the details required to set up a standing order. After waiting for a couple of days, I phoned back to find out the account still wasn't open. Then yesterday (Monday 25th) I was told that the account had finally opened and I was given the details that I needed to set-up the standing order. As I have no current account with Santander, I was given a bank account and sort code where I would have to reference my first home saver account number when using a standing order. I was wondering if anyone else had to do the same thing. Surely you should be able to set up a standing order from an external (non-Santander) account into a Santander savings account directly?
    "If you have much, give of your wealth; if you have little, give of your heart"
  • thepearcethepearce Forumite
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    khalid wrote: »
    I went to my local Santander last week (Monday 18th) to open a first home saver account. Had to return the next day, as an appointment was needed. Anyway, the guy took all my details but couldn't open the account as he was having problems with the system. He assured me that the account would be opened by the end of the day and that he would phone me the details required to set up a standing order. After waiting for a couple of days, I phoned back to find out the account still wasn't open. Then yesterday (Monday 25th) I was told that the account had finally opened and I was given the details that I needed to set-up the standing order. As I have no current account with Santander, I was given a bank account and sort code where I would have to reference my first home saver account number when using a standing order. I was wondering if anyone else had to do the same thing. Surely you should be able to set up a standing order from an external (non-Santander) account into a Santander savings account directly?

    I'm paying my SO from a non-Santander account. You're just paying into a collection account. Nothing different to if you pay credit card in a similar way.
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