Santander 3.3%/3.5% Flexible ISA i3

joyceyjo

Did anyone take out the Santander 3.2% April 2010? My rate is due to run out 8th April and will then dop to a minimal level,so i rang Santander to ask if i could have it converted to the new Loyalty ISA. Errr no. The new loyalty isa and flexible isa's don't accept isa transfers. "But surely this is just a conversion not a transfer" No! So it seems like Santander are happy enough to refuse existing customers the opportunity to receive a decent rate when their rate runs out. They don't really seem to care that anyone who keeps up to date with rates will not keep it with them and transfer it out. Whereas they could probably hang onto quite a few isa's if they offerred customers a decent rate after the first year. I really don't get the thinking behind this. They are offerring market rates for new money but losing so much in transfer outs. If anyone has a Santander isa and the rate is due to drop then have a look at Halifax Reward 4 ISA- 3% instant access and accepts transfers in

2sides2everystory

Thanks for that jj. Maybe I could do no worse than move mine to Halifax. Am I right in thinking that if omething better comes along accepting transfers that I can transfer it again within months? Or does the 3% only get paid if you stick with it for a whole year?

All the banks do this dropping you off the cliff after 12 months thing of course. It should be banned because they are deliberately trapping elderly and other forgetful customers.

I actually would argue it is worse than credit card companies who offer a stupid loss-making promotional rate relying on forgetful or vulnerable customers who blunder into the disgracefuly high "normal" rates at the end of the promotion.

One reason it is worse is because elderly customers are generally not the type to get suckered into credit cards but they are certainly easily suckered into headline savings deals.

I have elderly parents and just recently they asked me to take a look at their ISAs. Their bank who shall remain nameless until I get fed up enough had let some of their ISAs get as low as .10%. Others they had picked off at various times suitable to them to steer into Stocks and Shares ISA products which my parents had not the slightest clue about and which had labels on them that in one case had changed three times because the bank had compulsorily altered the portfolio and sold it on to different managers. Suffice to say the value of the things have gone up and down like a demented yoyo ever since. My parents had no idea what they had bought. Luckily my parents had kept all the paper but it was filed all over the place because of the changes of names, changes of account numbers and lack of clarity of what belonged to what. The way the financial institutions involved merrily increased the "management charges" incensed me too. Three increases in eighteen months on one product.

I side with you and very strongly believe that this type of short term marketing of long term investments relying on punters caught in the headlights and not knowing where to move next or at all must be stopped, but this government certainly hasn't the b*lls for it.

joyceyjo

2sides2everystory

The halifax reward 4 is actually a very good isa. Interest is calculated daily so if you open one or transfer into one and then if something else comes along with a better rate either within halifax or externally you can redesignate to it (if within halifax) or transfer out elsewhere and you still get all your reward interest up to date.

One thing i would say is that if anyone does go for the 3% reward then don't just forget about it for a year, keep checking if they bring out any new reward campaigns. Because if the bring out for example reward 5 in 6mths time with higher rate you can just have your reward 4 redesignated.
And another good thing is this is the 4th reward. So when your reward rate is due to run out they usually have another reward in place which you can convert over to rather than being forced to transfer it out like Santander.

ilsonreject

Thanks for your reply rb10, much appreciated.:beer:

Renfro

Jackie47 wrote: »

I was in Santander this afternoon too and was told that it went up today...3.5 for non-customers and 3.7 for customers with no strings!

I'm confused. :huh:

The Santander web site has recently changed to show 3.3% and 3.5% (same as Martin's ISA rates guide). I can't find any mention of 3.5% and 3.7%.

Lokolo_2

Renfro wrote: »

I'm confused. :huh:

The Santander web site has recently changed to show 3.3% and 3.5% (same as Martin's ISA rates guide). I can't find any mention of 3.5% and 3.7%.

Me neither, maybe Jackie47 knows something that we don't know?! :rotfl:

ultrawomble

joyceyjo wrote: »

Did anyone take out the Santander 3.2% April 2010? My rate is due to run out 8th April and will then dop to a minimal level,so i rang Santander to ask if i could have it converted to the new Loyalty ISA. Errr no. The new loyalty isa and flexible isa's don't accept isa transfers. "But surely this is just a conversion not a transfer"

Tell them to read their own advice that suggests that such a transfer should be possible:

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237836201044&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateA1

Transferring an existing Santander cash ISA to another Santander cash ISA

If you wish to transfer an existing Santander cash ISA to another Santander cash ISA this can be done simply by going into any Santander branch or by calling 0845 600 0181. You will not need to complete a new online application form.

As an existing Santander Cash ISA customer you will continue to be able to use all other details of your account including your existing card, PIN and any telephone and on line banking etc., as normal.

rb10

ultrawomble wrote: »

Tell them to read their own advice that suggests that such a transfer should be possible:

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237836201044&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateA1

That is in the general case - e.g. if you wanted to transfer to the Direct ISA.

The terms of the Flexible ISA clearly state that it is not possible to transfer into it.

adindas

Barclay and Santander are in the fierce battle now in term of interest rate. I think as a general rule is that we should never just believe what the other competitors are saying.

Jackie47 wrote: »

Went into Barclays straight after to be told the Santander ISA does have strings so who to believe? :rotfl:

luvpump

Is this ISA easy access does anyone know ? cheers