Santander in-credit interest

jfke

I've had this account for a couple of months now and my incoming deposits regularly top the 2.5k maximum. What I can't understand is why I get such a nominal interest amount each month. Does anybody how the interest is payable? I'm assuming it's paid on the total balance at the end of the month but that's a big assumption I suppose.

Is anyone getting any good interest from this account? I intended to open a separate account for my partner and have my stoozing money in there with a 1k deposit and withdrawal each month to validate the account criteria.

Mikeyorks

jfke wrote: »

I'm assuming it's paid on the total balance at the end of the month but that's a big assumption I suppose.

Massive assumption! If it were ..... we'd all be plopping the max value into any interest bearing account just before the month end? Then withdrawing it.

It's calculated on a daily basis .... then added to the account monthly.

partlydave

jfke wrote: »

I've had this account for a couple of months now and my incoming deposits regularly top the 2.5k maximum. What I can't understand is why I get such a nominal interest amount each month. Does anybody how the interest is payable? I'm assuming it's paid on the total balance at the end of the month but that's a big assumption I suppose.

Is anyone getting any good interest from this account? I intended to open a separate account for my partner and have my stoozing money in there with a 1k deposit and withdrawal each month to validate the account criteria.

If you have a constant balance of £2500 and pay in £1k a month then you should be getting £10 a month net interest if you are a basic tax payer.
Ive just had a complaint against Santander that resulted in them paying me £70 compensation, plus 9 months of interest that was underpaid. They do not know how to run this account.

My advice is to open a Halifax reward account each if you havent already and get £10 or £15 if you also get a joint account and put your £2500 somewhere else a long way from Santander

PC_Gabriel_Kent

Rate is now 5%.

partlydave

PC_Gabriel_Kent wrote: »

Rate is now 5%.

Blimey, they couldnt work out 6%, now theyve got to do a new calculation they'll be having forty fits

jfke

I suppose it was a massive assumption but then the banks don't seem to mind you cycling a transitory 1k through these accounts to qualify for the interest in the first place I thought they might be similarly daft. I guess I'll keep a constant 2.5k balance in it.

I like the three reward accounts idea very much as well! I guess there's another thread addressing this but do they not mind you making these "token" 1k deposits in order to qualify for the £5 monthly payment?

Baldur

jfke wrote: »

I like the three reward accounts idea very much as well! I guess there's another thread addressing this but

New customers are currently restricted to one sole and one joint Reward account, the option to open up to three was changed at the end of last year.

do they not mind you making these "token" 1k deposits in order to qualify for the £5 monthly payment?

They keep paying the £5 rewards, and there's nothing in the Ts & Cs to prevent it, so whether they 'mind' or not is immaterial.

Philip624

Three reward accounts? I thought you could only have one per person?

blueberrypie

Philip624 wrote: »

Three reward accounts? I thought you could only have one per person?

The limit is now one individual and one joint, but until late November 09, the limit was three per person. Those who opened three accounts prior to that change have, so far, been allowed to keep them.

jfke

Perhaps my phrasing regarding the use of the word 'mind' was taken a bit too literally. I guess what I was saying is has anyone been pulled up on this 'cycling' and is there any plans for them to retrospectively adjust the accounts. You've addressed that concern for me, so thanks!

Sorry to be misleading about the three accounts, I thought I implied that it would've been one for me, one for my partner and one joint account for us. £15 for nothing is quite impressive.

partlydave

jfke wrote: »

Perhaps my phrasing regarding the use of the word 'mind' was taken a bit too literally. I guess what I was saying is has anyone been pulled up on this 'cycling' and is there any plans for them to retrospectively adjust the accounts. You've addressed that concern for me, so thanks!

Sorry to be misleading about the three accounts, I thought I implied that it would've been one for me, one for my partner and one joint account for us. £15 for nothing is quite impressive.

You can have 3 reward accounts on that basis:)