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

Wings_of_Ambition

Quick question - I've had this account for years. Just looking at the Santander 123 account, which also pays 3% on balances up from £3k to £20k. I understand there is a monthly fee and cashback on bills, but purely from an interest point of view, is there any difference between what I'd get on these accounts with the same amount invested?

afmfifgh

Depends on the amounts. The special home saver special issue 1 pays 3% on balances of £1 to £49,999.99.

The Santander 123 account pays 3% on balances of £3,000 to £20,000.

So if you have over £20,000 or less than £3,000 I would go for the SHSSI1 ac.

Only other differences are the fees and cash back and the 123 pays monthly interest v the other paying yearly.

Hope that answers your question.

beefturnmail

Still paying 3% as at 28/5/14

http://www.santander-products.co.uk/savings/interestratefinder/

One of the best financial decisions I've made, opening this account (and keeping it open after buying a house)

chamelion

worst decision I've made closing it when I got the notice

Jabba_flabba

Has anyone else had a letter from Santander stating that their First HomeSaver a/c will be changing to an Instant Saver? I had a letter dated 30 July to this effect. I am baffled by the fact that the accompanying information sheet about the changes states that the changes will come into effect by 26 September 2013 and yet the letter is dated 30 July 2014. Also, the prior rate is incorrect - it's 3% not 0.10%/0.60%. I'm guessing this is a mistake, perhaps applying to a different issue of First HomeSaver - mine is Special Issue 1. My a/c is still listed as First HomeSaver in Internet Banking and the interest earned and paid in April was at 3% (2.4% after tax). See http://i.imgur.com/6Ri2rE7.png and http://i.imgur.com/GNU9DeH.png

afmfifgh

Not had the letter and the site is still saying it is paying 3% though it still has the error that this is on amounts of £1+ and not on amounts of £1-£49,999.99.

Hopefully just an error! When did you get the letter as opposed to the date on it?

Jabba_flabba

I went into my local branch today and pointed out that very error about the interest rate on balances above £49,999.99 being 0% and not mentioned on the Savings Interest Rate Finder. They took note so expect it to be corrected soon.

I think the letter came w/c 11 August, while I was abroad. My suspicion is that they sent it to me in error, following a request from me for the current terms and conditions of that account. If the a/c had been discontinued by 26 September 2013 then I wouldn't expect it to be displayed via http://www.santander-products.co.uk/savings/interestratefinder/.

afmfifgh

I don't think you have anything to worry about - seems they have got mixed up and sent you the info for the original First Home Saver and not the First Home Saver Special Issue 1.

As for them updating the interest rate info on the website - don't hold your breath I have raised the point with their online team several times and have it in writing that the rate only applies to £1-49,999.99 but I think you would have a case with the ombudsman if you had more in the account and didn't get the interest as it has been advertised as on balances of £1+.

I wouldn't lose any sleep over the letter.

someone

Oh no!

Seems short notice, I thought they had to give 1 month notice for adverse changes to the account?

I think however we all knew this day would come. It's partly why I opened Leeds BS regular saver @ 3.05% (ongoing)

Looks like a Tesco account is going have to be opened now ... soon will have enough bank cards to play solitaire!

beefturnmail

Interest rate is NOT reducing on this account - looks like previous poster received the letter in error