Santander (Loyalty) Tracker Bond

Arthurian

Saw Martin's news item about this and thought it looked good, but on closer inspection realised I don't qualify for the loyalty bonus, so it would give me 3% at the moment. Then any tracking increases might be delayed by 3 weeks. So, given that they also offer 2.8% instant access in their esaver account, I'm wondering if it's worth applying for the bond instead of the esaver. Probably not as I'm only thinking of placing £23K with them, I think. Then I can shuffle my cash out of the esaver asap if another provider comes up with a better offer over the year. I'd be interested in other people's views, though.

alastair_h

Arthurian wrote: »

I'm only thinking of placing £23K with them, I think. Then I can shuffle my cash out of the esaver asap if another provider comes up with a better offer over the year. I'd be interested in other people's views, though.

Why don't you set up 3x Lloyds TSB Classic Vantage accounts (no banking charges on this particular account - some of the others do charge £8 to £25 a month basically).

http://www.lloydstsb.com/current_accounts/compare_bank_accounts.asp?WT.ac=VCOA0609

Place £7,000 in each account. Set up 3x monthly standing orders which transfers £1,000 from

Vantage 1 to Vantage 2
Vantage 2 to Vantage 3 and
Vantage 3 to Vantage 1 all on the same day (suggest middle of the month - then no problems with missing required monthly payment with end of month falling on a weekend / bank holiday etc).

This satisfies the account criteria (£1,000 paid in each month) and you get 4% AER interest.

You can put the rest in an instant access account such as AA Internet saver at 2.8% or Santander 2.75% etc