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

pazza2000

I can reiterate what others have already mentioned here, the branches are useless when dealing with this account. Unfourtunetely all issues are best dealth with via mail/email

4tex

I've had a First Home Saver account for a while but have only managed to save about £7000 in total. I'm wondering whether to transfer £25k from another of my saving accounts (current interest = 3%) into this one, and sacrifice that months interest in order to boost my First Home Saver account.

However, the horror stories above have put me off a bit, so any advice would be gratefully received!

I must admit I haven't checked my interest accrued on this before, so will download the spreadsheet and check it out. I hope it's right as I don't fancy going through customer complaints!!!

cheap-information

I take it that others have received the letter from Santander saying that there may have been a mistake on the amount of interest paid.

Also says that they will contact in August to rectify the mistakes.

To my knowledge my interest was correct.

rb10

4tex wrote: »

I've had a First Home Saver account for a while but have only managed to save about £7000 in total. I'm wondering whether to transfer £25k from another of my saving accounts (current interest = 3%) into this one, and sacrifice that months interest in order to boost my First Home Saver account.

Definitely worth doing.

You would lose £23 in interest (4% net) for the month in which you transfer the money in (on a £7k balance - this assumes that you add the £25k at the end of a month).

You would then gain 1.6% net on the £25k, which comes to be around £33 per month.

thepearce

I recently closed my First Home Saver account. A sad day... but it was to buy a house after all. I thought I'd answer a question I wanted to ask myself, or at least make a comment.

I was in the fortunate position of having approx. £49,000 in my account. I'd made a large deposit taking the balance to around £49,000. I knocked my monthly DD down to £100 to give me a while before £50k was reached.

What I'd forgotten about was the interest date and a healthy chunk of interest being added. This took the balance to over £50,000.

* I was still able to add the DD deposit each month

* I still received 5% gross / 4% net interest up until I closed the account.

I was pleasantly surprised as the "maximum" balance is £50k and the interest of 5% seems to be quoted on balances of up to £50k (with no mention of the rate after that).

someone

I think the max balance was increased a while ago (in one of them leaflets no-one reads)

Eponym

Eponym wrote: »

Sorry for the double post. My payment for this month went on 2nd May but I checked my internet banking and another payment went out on 3rd May. My payments go by standing order so it wasn't because of me.

My total is now about £4600 but it should be £4300.

Obviously as a result, if I leave it I will get 0.1% interest for this month. Therefore I was going to call Santander to get them to sort it out but I while I'm sure they can withdraw the payment, I have no confidence that the interest will be paid correctly. Secondly, it occurred to me that it might actually be better for me to lose one month's interest in exchange for the higher amount of money in the account.

These calculations are not my strong suit, can any helpful MSE tell me how to work it out please?

Following adding extra to my FHS after this problem, I have now had an letter saying my interest is wrong and they will contact me to let me know what is happening.

I presume this is just because their systems show 5% interest for that month but now have seen that it shouldn't be.

Has anyone else whose overpaid had a similar letter?

PrecisionPete

someone wrote: »

I think the max balance was increased a while ago (in one of them leaflets no-one reads)

Hi everyone - Does anyone know what the limit has been raised to if this is correct as I'm getting very close to £50k? :j

Cheers

Pete

mili.

Hi all

I emailed the CEO with a spreadsheet showing what interest should have been calculated. However, the problem was my payments were going in on the 29th of the month, and due to bank holidays and such didnt get to the account until a few days later. The adviser at Santander should have mentioned this when I opened the account. Anyways after several phone calls and emails to the CEO I got around £180 compensation - this included the amount I missed on the lost interest. So I would highly recommend to send an email to the CEO to say how the advisers did not mention this.

Hope this helps!

nightsky224

Just wanted to post our experiences really.

We opened a first home saver about a year and a half ago andclosed it a month ago as we were buying a house. My interest rec was fine butmy OH was £70ish short.

We only noticed after leaving the branch so rang customerservices. They refused to speak to him and said he had to go in branch. Inbranch very friendly and agreed that he had been under paid processed a queryand said that someone should get back to him soon. He got a txt with ref no anda tel no to call for update.

A week later nothing had arrived. Rang to get an update.They refused to speak to him as his account was closed which for some reasonmeant they could not take him through security.

Back in to branch, another query logged and more timewaiting. 2 weeks later he got a 2 line letter. Basically said we are right youare wrong if you want to see an interest breakdown send us £10.

We were livid! But we were in the middle of moving andeverything was chaotic! About a week later we got a cheque in the post for theremaining £70ish…. And a lettetr that said the interest had been recalculatedplease find enclosed cheque……

The whole process was so irritating, esp not being able totalk to anyone in the call centre. I shall not be going for another Santanderproduct ever again! (we have a credit card with them , its about to be cancelled!)