Santander eSaver?

Catbells

I've just sold my house and after buying a new one am able to put £50k away for investment purposes. I have talked to the local Santander manager and was thinking about their eSaver which has 2.75 variable rate of interest and can be managed online. Being a total idiot about these things I just wanted to ask if anyone else would recommend this account and what variable means. Any information welcomed. Thanks.

Rafter

Variable means that the interest rate is not fixed. It means that Santander can raise or lower interest rates and this may or may not be in response to changes in the Bank of England Base rate - under new rules they will at least have to write and tell you.

2.75% is not a bad rate for instant access savings right now.

You could do better if you are prepared to lock your money away for a year - but the risk for your is that base rates rise and you are stuck on a relatively low rate.

£50k is a 'safe' amount to invest with one institution too as your funds are guaranteed by the FSCS. This limit is also likely to rise to c. £80k in the next few months following a european directive.

Hope that helps.

R.

Catbells

Rafter wrote: »

Variable means that the interest rate is not fixed. It means that Santander can raise or lower interest rates and this may or may not be in response to changes in the Bank of England Base rate - under new rules they will at least have to write and tell you.

2.75% is not a bad rate for instant access savings right now.

You could do better if you are prepared to lock your money away for a year - but the risk for your is that base rates rise and you are stuck on a relatively low rate.

£50k is a 'safe' amount to invest with one institution too as your funds are guaranteed by the FSCS. This limit is also likely to rise to c. £80k in the next few months following a european directive.

Hope that helps.

R.

Thanks Rafter. I am lucky to be able to lock this amount away for a year and thought this eSaver was about the best one around. It was in the Times a week or so ago as being among 3 good choices for investing in. Which others are there do you know or where would I find information about them.
On base rates, I get the feeling that they are not going to rise (much) over the next year or so??

premierfella

Not necessarily a recommendation, but did the local Santander manager not make any mention of their One Year Tracker/Loyalty Tracker Bond?

Catbells

premierfella wrote: »

Not necessarily a recommendation, but did the local Santander manager not make any mention of their One Year Tracker/Loyalty Tracker Bond?

Yes I think he did from memory but the loyalty was only for Santander account holders which I am not. Am going to see him this week so will check. Thanks.

Catbells

MarkHill wrote: »

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Funny you should mention this. I get alerts from them. This week I got an alert which was very rambling in nature which I found off putting. I hadn't heard of the company they seemed to be recommending and felt slightly uneasy that they should be going to such rambling lengths to 'persuade' investors to get involved. I could be wrong of course.

fullstop

Catbells wrote: »

Funny you should mention this. I get alerts from them. This week I got an alert which was very rambling in nature which I found off putting. I hadn't heard of the company they seemed to be recommending and felt slightly uneasy that they should be going to such rambling lengths to 'persuade' investors to get involved. I could be wrong of course.

Have you considered it could be SPAM?

LongTermLurker

Catbells wrote: »

Funny you should mention this. I get alerts from them. This week I got an alert which was very rambling in nature which I found off putting. I hadn't heard of the company they seemed to be recommending and felt slightly uneasy that they should be going to such rambling lengths to 'persuade' investors to get involved. I could be wrong of course.

WHY did you thank this one? It's one of many spam posts - better to press the spam button instead

Catbells

LongTermLurker wrote: »

WHY did you thank this one? It's one of many spam posts - better to press the spam button instead

Had no idea it was spam Lurker. Merely someone trying to be helpful. I'm learning.

Catbells

fullstop wrote: »

Have you considered it could be SPAM?

Not at the time but I do now.

Aberdeenangarse

Where's the spam button? Don't newbies get it?