MSE News: Santander kicks off Isa rate war

Spivved1987

Well, I certainly wasn't aware of this. It seems too good to be true - in effect allowing a transfer in, albeit not a transfer in from another provider. Given that their whole business model is based on the 'juicy worm' principle I shall be surprised if there's no catch. But I will investigate and report back at some stage.

jimbow25

I spoke to Santander by phone last night and a person on the savings team said you can open one of these accounts and fund it after 6th April, to be next year's ISA only - however, he did point out you are wasting a month of the bonus interest rate if you open it this early, because the rate starts from account opening and not the date of funding.

Last year Flexible Issue 1 (3.5%) lasted until 5th April and they tried to get any new accounts for the following year in as Issue 2 (3.2%) so if it sounds like they might do the same again you might want to still try and open it late March.

I also had quite a heated discussion with the guy in my local A&L branch last time who insisted you had to fund the new account with £1 immediately - he went away and made a phone call and then agreed to let me do as above.

Consumerist

bubblesbonbon wrote: »

Also according to their web site, the Flexible ISA does not accept transfers in so this option is not available.
Quote

"Flexible ISA (Issue 3)

Never earn less than 3.15% AER tax free (variable) for a year. For 12 months the rate will remain 2.65% above Bank of England base rate and guaranteed never to drop below 3.15% AER tax free (variable). This limited offer Flexible ISA (Issue 3) does not accept transfers from any existing cash ISAs"

Interesting. Since there seems to be a contradiction, it seems that a phone call will be needed to sort this one out. It'll be disappointing if you can't do an internal transfer to the Flexible ISA 3 and I apologise for raising any hopes if it is not allowed. .

Spivved1987

I hope somebody from Santander reads this site and can clear up the contradiction! But if I were a betting man..........

Consumerist

Spivved1987 wrote: »

It seems too good to be true . . .

Yes, I agree and it probably is, sadly.

Svenena

jimbow25 wrote: »

I spoke to Santander by phone last night and a person on the savings team said you can open one of these accounts and fund it after 6th April, to be next year's ISA only - however, he did point out you are wasting a month of the bonus interest rate if you open it this early, because the rate starts from account opening and not the date of funding.

Last year Flexible Issue 1 (3.5%) lasted until 5th April and they tried to get any new accounts for the following year in as Issue 2 (3.2%) so if it sounds like they might do the same again you might want to still try and open it late March.

I also had quite a heated discussion with the guy in my local A&L branch last time who insisted you had to fund the new account with £1 immediately - he went away and made a phone call and then agreed to let me do as above.

Has anyone tried this, this year? Is it possible to open the account now (or between now & 5th April), but not fund it until the new tax year? If it's likely to get withdrawn on the 6th, I'd like to open it before then and then fund it after that date. One Santander employee telling someone this on the phone doesn't convince me, knowing what they're like, and the website says £1 is needed to open it.

ETA: Their T & Cs have this to say: "If you do not pay into your ISA during a Tax Year and want to pay in a following Tax Year, you will need to make a new application before we can accept your further payment. This is a requirement of the ISA Regulations." So it doesn't sound very likely.

thenudeone

ETA: Their T & Cs have this to say: "If you do not pay into your ISA during a Tax Year and want to pay in a following Tax Year, you will need to make a new application before we can accept your further payment. This is a requirement of the ISA Regulations." So it doesn't sound very likely.

I though that this only applies if the account had been used in a previous tax year and had been dormant for a year, i.e. one tax year missing.
I doubt it applies in this circumstance.

Consumerist

Svenena wrote: »

Has anyone tried this, this year? Is it possible to open the account now (or between now & 5th April), but not fund it until the new tax year? If it's likely to get withdrawn on the 6th,

Can't speak for this year but this is exactly what I did last year (with A&L) to get the 3.5% rate - and that's what I got recently. If last year is anything to go by - 3.5% dropped to 3.2% on [Edit: 6 April 2010] - the bonus rate will drop on, or soon after, 6 April this year.

Edit
If you open the account online before 6 April and, in the application, elect to fund it by bank transfer then you can leave it unfunded till 6 April or after. Again that's what I did last year to bag the 3.5% rate for most of the year. The closer to 5 April you can get to open the account, the longer the bonus will apply on funds contributed after 6 April.

lonsam

planemad wrote: »

I have just transferred out of Santander due to their poor customer service and the dreaded foreign call centres that I had to endure on many occasions.
I have nothing against them and they do seem to be extremity polite but I prefer to talk about my banking matter with someone who can understand what I say without repeating myself over and over again only to feel that I'm being spoken to from a script.

I would not move back to this rubbish establishment what ever they offer.

Hi planemad

Could i possibly ask who you transfer to, as i have been a Santander Customer for many years and i strongly agree their customer service is awlful, as i have had to deal with them a lot lately so when I get one of those foreign call centres on the phone i just put the phone down as they are just so frustrating

lonsam

lonsam wrote: »

Hi planemad

Could i possibly ask who you transfer to, as i have been a Santander Customer for many years and i strongly agree their customer service is awlful, as i have had to deal with them a lot lately so when I get one of those foreign call centres on the phone i just put the phone down as they are just so frustrating

I ask planemad as I am so fed up with this that i at times think about switching accounts?