Update! Santander First Home Saver Account: 5% on up to 50k savings (up to 35 only)

atypical

Theone1 wrote: »

Is 5% the best available these days?

Very much so, especially for the terms on the account. The best 5 year fixed term deposit is 5.05%.

Theone1 wrote: »

I thought real inflation is about that?

March's CPI was 4%, RPI was 5.3%.

adonis10

Due to having less disposable income this month I had to lower my usual payment. However, I didn't realise that anything less than £100 attracts 0.1% interest in that month. I changed my SO to £50, which has been debited, and am wondering if it's possible to make a payment for the additional £50? I can afford £100 if it means getting the 5% in that month.

Anyone had similar experience?

atypical

The site says "you will receive a lower rate of 0.10% gross/AER when you pay in under £100 or over £300 in any calendar month".

If you make two deposits in the same month that add up to £100 it shouldn't be an issue. You'd need to check the wording of the T&Cs to be definite though.

Ants1337

Just thought I'd sign up and add to this discussion.
I opened this account with a cheque for £100. Later that month I overpayed £27000 into it.
It's now 2 full months since doing that and the regular payments of £100 have been taken, so I assume the account is still open...
It'll take a year to find out it the 5% interest has been added, but I remain hopeful.
(I'm looking to buy at the moment though, so if I need to get the money out earlier (at which point they'll credit any interest I have gained) I'll let you know...)

Ant.

hopeful_saver_3

Hi all

Was hoping if anyone would be able to help with a couple of points, sorry if they're a bit long winded but want to give enough info for any comments to be well informed

1) I opened a first saver the beginning of the year (without too much hassle ) and have so far received 1 quarterly statement, which shows my initial deposit of £5000 and my monthly £300 deposits. It doesn't show what interest has been accrued. I presume as the interest is only paid on the anniversary of the account (and/or upon account closure) the interest accruing invisibly in the background (based on the daily balance) doesn't get shown on the statement and you won't find out until you close or the end of the year? In which case will it show automatically on the year end statement or would I have to request the interest breakdown (could I do this before year end also)?

2) I am currently buying my own home. When I opened the account i met all the criteria (ie. under 35, no mortgage before, hadn't owned my own home etc).

I will be taking out a mortgage (with HSBC). The current rate is 2.39%. I am considering leaving my home saver run and continuing to pay in, as the rate i will get on these savings outstrips the interest I will be paying on the mortgage at present (my mortgage will allow unlimited overpayments and lump sums without penalty so if this changes at any point I could just close the account and pay this money off the mortgage).

I have looked through the t & c's and the thread but cannot see anything regarding the feasibility of this. Obviously this isn't in the spirit of the account, but do you think Santander would clock on or just let run? I know I would have to have the mortgage meeting with Santander to close the account, but from what i've gathered they wouldn't check if i'd taken out a mortgage with someone else in the interim and all i'd need say is that their products didn't suit my requirements to close the account and get my money (with applied interest)?


I'd appreciate any thoughts and comments, many thanks

rb10

hopeful_saver wrote: »

1) I opened a first saver the beginning of the year (without too much hassle ) and have so far received 1 quarterly statement, which shows my initial deposit of £5000 and my monthly £300 deposits. It doesn't show what interest has been accrued. I presume as the interest is only paid on the anniversary of the account (and/or upon account closure) the interest accruing invisibly in the background (based on the daily balance) doesn't get shown on the statement and you won't find out until you close or the end of the year? In which case will it show automatically on the year end statement or would I have to request the interest breakdown (could I do this before year end also)?

No interest will be shown until it's been paid. It'll automatically show the total amount on the statement at the end of the year, but not the breakdown as to how it's been calculated.

If you want to know the breakdown, then you can either
1) Calculate it yourself;
2) Ask Santander; or
3) Post on here and someone will probably calculate it for you.

I'd go with (1) if you're happy with the maths; otherwise (3).

hopeful_saver wrote: »

2) I am currently buying my own home. When I opened the account i met all the criteria (ie. under 35, no mortgage before, hadn't owned my own home etc).

I will be taking out a mortgage (with HSBC). The current rate is 2.39%. I am considering leaving my home saver run and continuing to pay in, as the rate i will get on these savings outstrips the interest I will be paying on the mortgage at present (my mortgage will allow unlimited overpayments and lump sums without penalty so if this changes at any point I could just close the account and pay this money off the mortgage).

I have looked through the t & c's and the thread but cannot see anything regarding the feasibility of this. Obviously this isn't in the spirit of the account, but do you think Santander would clock on or just let run? I know I would have to have the mortgage meeting with Santander to close the account, but from what i've gathered they wouldn't check if i'd taken out a mortgage with someone else in the interim and all i'd need say is that their products didn't suit my requirements to close the account and get my money (with applied interest)?


I'd appreciate any thoughts and comments, many thanks

As you say, there's nothing in the T&Cs that prevents you from doing this.

Also, there is no way that Santander could find out that you have a mortgage with HSBC.

So go for it!

Just keep an eye on it as rates of the mortgage and/or First Home Saver change, and do the maths. Consider all possibilities - if you closed the FHS and paid the money off your mortgage, would this reduce your LTV, allowing you to get a better mortgage rate?

And remember to use the net rate of the First Home Saver for comparisons, and not the 5% gross rate.

hopeful_saver_3

Hi rb10!

Fab, many thanks for your comments!

I have a big deposit even without the money in the FHS, my current LTV being about 58% (excluding FHS). The best rate mortgage from HSBC (which has the mortgages that best suit my needs at present) requires a max LTV of 60%, so I just manage to creep under the mark.

I'm a lower rate tax payer, so the FHS is effectively 4% (after tax), still quite a good difference between the current mortgage rate (2.39%) and the interest rate on the FHS. Will definitely be keeping an eye on both interest rates though! :rotfl:if it becomes more worthwhile or less hassle i'll just close the FHS and pay the money off the mortgage (as I said, I can make unlimited overpayments including lump sums, so I can afford to juggle a bit).

Glad to know they wouldn't be able to find out about the mortgage with HSBC. If they were bothered to do a credit check would there be an indication of the mortgage on there though or would they just see I have a credit agreement with them, which could be just a loan?

spikyone

hopeful_saver wrote: »

Glad to know they wouldn't be able to find out about the mortgage with HSBC. If they were bothered to do a credit check would there be an indication of the mortgage on there though or would they just see I have a credit agreement with them, which could be just a loan?

AFAIK it doesn't matter anyway - it's only at the point of account opening that you have to meet the "never had a mortgage and under-35" criteria.

MiserlyMartin

ses6jwg wrote: »

If you are older than 35 and try to apply the option will not be availiable to the adviser under the "Savings" opening process, just as if you attempted to open a c/a the 11-15 account would not be in the list for selection.

In short, the answer is absolutely impossible, unless you lie about your age, which is fraud.

So not content with appalling customer service, Santander are now age discriminating!

rb10

MiserlyMartin wrote: »

So not content with appauling customer service, Santander are now age discriminating!

There are loads of 'over 50s' savings accounts.