Santander First Home Saver, Small Print & Making a Large Deposit

fp04

Hello dearest moneysavers,

I yesterday opened a Santander FHS with £5k. Pretty exciting, I know. I also have another large amount (£10k+) I want to put in it, as it is not forbidden by the conditions of the account. If you put in over £300 a month, you lose the interest for that month - but in the long run, gain more due to the larger amount in the account.

HOWEVER

In the small print of the account, it states that "if you deposit more than £300 in a single month we reserve the right to close the account."

Is this really likely? Has anyone heard of this before? Is it worth the risk of losing the 5% interest!?

Thanks for any advice or experience you can offer!

SeminoleCAG

Run that past me again, you lose interest if you put money INTO the account :eek::eek::eek:

Not sure I can help with your question but they don't call them Satan's bank for nothing.

fp04

You lose interest if you put TOO MUCH money into the account! Put it in, by all means, but only under very strict conditions!

rb10

There are a couple of other threads on here about the exact same question.

I haven't seen anyone on here who's actually had their account closed by doing that.

Lokolo

TBH the account also can have up to £30k in it, so I wouldn't see the point in saying £30k as it would take you almost 7 years if you went by the £300/£5K max rule...!

Essex123

The limit is £50k, but not sure what exactly happens if you breach it.

As for making a large deposit, I did so with an amount much larger than the OP is suggesting and everything was fine (it was over a year ago, and the interest they paid was on the full amount except the month I made the large deposit).

The OP is in a great position to make the £10k deposit before the end of April, and that way the loss of interest will only be for 10 days (21-30 April).

LB1985

Any update on whether you did this and, if so, whether there were indeed any consequences, other than one month of lost interest?

gt94sss2

Essex123 wrote: »

The OP is in a great position to make the £10k deposit before the end of April, and that way the loss of interest will only be for 10 days (21-30 April).

The loss of interest would be for the full month not just 10 days..

LB1985 wrote: »

Any update on whether you did this and, if so, whether there were indeed any consequences, other than one month of lost interest?

Many people including me have done this in the past with no issues - there are a number of longish threads on this issue if you search the boards..

Regards
Sunil

Essex123

gt94sss2 wrote: »

The loss of interest would be for the full month not just 10 days..

The OP opened their account on 21st April, and so if they made a large deposit before the end of April they would only lose interest for those 10 days between a/c opening and the end of that calendar month. The full rate of interest would apply from 1st May.