Santander First Home Saver Savings Account

MOPI

Hi I have just opened one of these accounts today in branch and I was told by the advisor the following:

1. The 5% rate only lasts for 12 months then like a regular saver account the rate goes down to something like 0.5%. I know that the 5% rate is variable however I was under the impression that the first home saver account WASN'T like a regular saver account, where its basically useless after the initial promotional rate period.

2. The standing order into the first home saver account has to be the same value each month i.e. the value I set the standing order up for today has to be the same throughout the life of the account.

Are the above 2 points correct?

Thanks in advance!!!

finder

MOPI wrote: »

Hi I have just opened one of these accounts today in branch and I was told by the advisor the following:

1. The 5% rate only lasts for 12 months then like a regular saver account the rate goes down to something like 0.5%. I know that the 5% rate is variable however I was under the impression that the first home saver account WASN'T like a regular saver account, where its basically useless after the initial promotional rate period.

You are right and the advisor is wrong. The first home saver offers a variable rate of interest which is paid back into the account on an annual basis on the anniversary of account opening (point 5 in the account Legal Details)

MOPI wrote: »

2. The standing order into the first home saver account has to be the same value each month i.e. the value I set the standing order up for today has to be the same throughout the life of the account.

Are the above 2 points correct?

Thanks in advance!!!

Advisor is wrong again. Again, in point 2 of the account legal details it states that you may vary the amount that you deposit each month as long as it remains between £100 and £300.

Moral of the story - wish some of these so called banking advisers were a bit more professional!

notahopeinhell

Your experience of Santander's expertise is mirrored by my own.

Having submitted an ISA transfer form to them to transfer my ISA to the Yorkshire Building Society they proceeded to send it to the Clydesdale Bank!

When I asked why they had done so given that I don't have any dealings with the Clydesdale Bank they informed me it was all the same company. It isn't of course that's the Yorkshire Bank.

Took them several weeks to get their act together which lost me interest and my letter of complaint was ignored. Three months later I'm still waiting for an apology which I'm clearly not going to get.

Never will I use Santander again they are incompetent and totally uninterested in their customers. :mad:

MOPI

Hi thanks for the reply’s!

I have had nothing but bad customer service from Santander from pretty much day one of opening the account. I knew to expect this, I just keep reminding myself of the £100 I should be getting.

What I don’t quite understand is how Santander can offer such good rates of interest on savings? This is obviously the draw that Santander has to people.

xrjtg

You don't have to keep your monthly contributions between £100 and £300 either: they just slash the interest for that month if you don't. I'd be nervous about over contributing though; it was suggested at one point that you could pay in £20000 in the first month and keep it ticking over thereafter, but I think this crosses the line into taking the mickey, and might be stamped on.

edinburgher

I'd be nervous about over contributing though; it was suggested at one point that you could pay in £20000 in the first month and keep it ticking over thereafter, but I think this crosses the line into taking the mickey, and might be stamped on.

You can only open it with £100-5000 and can't pay in more than £300/mth by SO - how is this possible?

MOPI

edinburgher wrote: »

You can only open it with £100-5000 and can't pay in more than £300/mth by SO - how is this possible?

I think I read this somewhere else on this forum - someone was suggesting that you could submit a larger sum than the suggested £100-£300 e.g. £1000's. As the terms and conditions of the account state that if you dont pay in between £100-£300 or more than £300 you will only receive a low rate of interest for that month only, it will then revert back to the higher rate (currently 5%) the following month.

As other people have said I think this may be crossing the line a bit too much.

edinburgher

As other people have said I think this may be crossing the line a bit too much.

Agreed - sounds a bit too clever for its own good Also, the account is aimed at under 35s and while it's hardly the rule, I doubt that many of them (well, outside the SE) would have £20k+ to dump into an account straight away?

Manual_Reversion

I have suggested a similar idea recently, so it may have been my posts you're referring to. (Paying in a large sum at the beginning and forfeiting the interest for that month)

I've been into my local Santander branch and they confirmed it would be possible to do this.

As for the moral side, I acknowledge it's perhaps a bit cheeky, however I won't be losing any sleep over it.

xrjtg

There was a lot of discussion several months ago when the account first came out (or at least got attention). Morally I think you're fine: I've not done it myself, but only because I'd rather not risk losing the account.

edinburgher

Morally I think you're fine

I don't think morals even comes into it as they're a business, not a person Not that I'm advocating robbing banks or anything...