Santander's "Test Your Loyalty" ISA

studio_two

Jeannine wrote: »

I tried to open a Loyalty Flexible ISA with Santander in branch on Monday, but was told I would have to make an appointment. :cool:

In actual fact, isn't this the "Loyalty ISA" that has nothing to do with "Loyalty"?

I've been a santander isa customer for years, but I was told I would need to open a Current Acount with them to get the 3.5% Rate.

I then enquired about the 3.3% offer and was then told that I wouldn't be able to move my existing ISa Balance into that one.

The actual rate or "loyal" customers who already have an ISA with them is something like 2.5%.

Consequetly, I'm a little tired of jumping through hoops.

Stephen

Baldur

studio_two wrote: »

I then enquired about the 3.3% offer and was then told that I wouldn't be able to move my existing ISa Balance into that one.

It's clearly advertised that the Flexible ISA doesn't accept ISA transfers.

The actual rate or "loyal" customers who already have an ISA with them is something like 2.5%.

.....only for those who wish to transfer previous tax year's/years' funds within Santander - be 'loyal' to yourself and transfer your old Cash ISA funds to someone like Halifax, who offer 3% and accept ISA transfers.

studio_two

Baldur wrote: »

Be 'loyal' to yourself and transfer your old Cash ISA funds to someone like Halifax, who offer 3% and accept ISA transfers.

Many thanks. I am in the process of doing just that.

I must say though, it hadn't occurred to me that I might still open a Santander 3.3% Flexible ISA for the purposes of investing my allowance for THIS tax year. That IS what you are saying, yes?


Stephen

Baldur

studio_two wrote: »

I must say though, it hadn't occurred to me that I might still open a Santander 3.3% Flexible ISA for the purposes of investing my allowance for THIS tax year. That IS what you are saying, yes?

Yes - but be prepared to transfer it elsewhere when the rate drops next year.

studio_two

Baldur wrote: »

Yes - but be prepared to transfer it elsewhere when the rate drops next year.

I already took that hard lesson. :mad:

Many thanks once again.

yorks808

they've been doing a flexible loyalty ISA at Santander for over 12 months now, all on or around the same rate, in 09-10 when I opened I think rate was 3.5%, this year it was 3.3 or 3.5 % not sure now lyk. I dont think they'll be taking this ISA off sooon lyk!

Baldur

aheetun wrote: »

they've been doing a flexible loyalty ISA at Santander for over 12 months now, all on or around the same rate, in 09-10 when I opened I think rate was 3.5%, this year it was 3.3 or 3.5 % not sure now lyk. I dont think they'll be taking this ISA off sooon lyk!

The rate on all Santander 'best buy' ISAs drops to a pittance after 12 months (currently 0.5%) and has done for many years.

yorks808

I know that, I just closed the ISA I opened in 09-10 and put it in my 10-11 ISA when I opened that one last month. Its best that is!

Baldur

aheetun wrote: »

.....Its best that is!

It's OK for current tax year's allowance but not if you have built up many tax years' Cash ISA funds.

If you had opened and fully funded a Cash ISA every tax year since they were introduced, you'd have £44,640 + accrued interest (if under 50 on 5/4/2009) or £46,140 + accrued interest (if 50 or over on that date) earning tax free interest - pretty substantial interest, compared with a relatively minute £186.90 interest on £5,340 with Santander's Loyalty ISA.

yorks808

Baldur wrote: »

It's OK for current tax year's allowance but not if you have built up many tax years' Cash ISA funds.

If you had opened and fully funded a Cash ISA every tax year since they were introduced, you'd have £44,640 + accrued interest (if under 50 on 5/4/2009) or £46,140 + accrued interest (if 50 or over on that date) earning tax free interest - pretty substantial interest, compared with a relatively minute £186.90 interest on £5,340 with Santander's Loyalty ISA.

True that is...only I dont have many tax years allowance as I'm pretty young! lol.
The lady int Santander branch told me to close and get a cheque out to put in the new IISA that way.