Another Santander ISA Warning

delia

I recently applied for a Santander FLEXIBLE Cash ISA (current interest rate 3.3%). I have not received anything in writing about the account apart from how to set up online access. When I set up online access to the account, it showed it was an EASY ISA. This has an interest rate of 0.1%! When I contacted Santander, they told me it was my fault, even though I know I applied for the Flexible ISA. If anyone else has applied, it might be worth checking to see if you have the correct ISA. It's easy to miss it. I have not yet put any money into this account, so am I correct in thinking I can close it and then open the correct ISA for this tax year? I'm currently trying to get Santander to switch it for me but they seem unable to do this, despite it stating on their website that they can ("That's not my problem" to quote the Santander employee!)

ses6jwg

delia wrote: »

I recently applied for a Santander FLEXIBLE Cash ISA (current interest rate 3.3%). I have not received anything in writing about the account apart from how to set up online access. When I set up online access to the account, it showed it was an EASY ISA. This has an interest rate of 0.1%! When I contacted Santander, they told me it was my fault, even though I know I applied for the Flexible ISA. If anyone else has applied, it might be worth checking to see if you have the correct ISA. It's easy to miss it. I have not yet put any money into this account, so am I correct in thinking I can close it and then open the correct ISA for this tax year? I'm currently trying to get Santander to switch it for me but they seem unable to do this, despite it stating on their website that they can ("That's not my problem" to quote the Santander employee!)

yes you can just close it as long as you havnt funded it

try a branch

System

On opening the account you should have a copy of the Terms and Conditions which should give you a time period which allows you to change your mind - impliment what it tells you to do in the T&Cs - cancel opening the account and my own opinion would be to select a more reliable bank.

System

The important bit of the Santander General T&Cs is:

18 Cancellation and closing your account

Summary: this section explains how you can ask us
to close your account and how and why we may close
the account.
18.1 If, within 14 days of first opening your account, you would
like to cancel your account, let us know by using the contact
details given in your User Guide. Otherwise the account will
continue until you or we close the account. If you cancel your
account within 14 days of first opening your account we will
not charge you for the cancellation. This right to cancel does
not apply if the interest rate on your account is fixed for a
period of time.
If you ask us to, we will help you switch to a different account.
If your account is in credit, we will (and within 30 calendar
days of you cancelling) give you back all the money in the
account (less any pending payments and interest incurred)
together with any interest earned on it.

delia

Many thanks for the clarification of ISA rules. What disturbs me, however, is that Santander have opened the wrong account for me. They also said it was impossible to switch the ISA from Easy to Flexible, even though it says this on their website,

"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."

ses6jwg

The terms used around ISAs are confusing. You cannot "transfer" an Easy Isa to a Flexible ISA as the Flexible ISA does not allow transfers in.

You need to close the easy ISA and open a brand new flexible isa with new account number.

Funkyfreddy

delia wrote: »

......I have not yet put any money into this account, so am I correct in thinking I can close it and then open the correct ISA for this tax year? .......

If this is the case I'd just forget about it.

If your within the 14 days cancel/close under the T&C but if not just ensure you don't fund it at all and you can open and fund a different one elsewhere.

Go with an alternative ISA from somebody else - forgoing maybe a little in the headline rate but making life much less stressful in having not to deal with Santander.


FF

philbostavros

Hi

I have posted here previously in support of Santander, as after many years with A&L, the transfer to Santander went smoothly for me.

HOWEVER - my wife and I have had a nightmare with this year's "move the ISA game".

Firstly, we couldn't get an appointment at our local branch for 8 WEEKS (this was at the beginning of April). Went on shopping trip to Bluewater and managed to get to see an advisor.

We couldn't transfer existing funds to ISA with decent rate so decided to transfer to 1 year fixed rate postal ISA and opened new Loyalty Flexible ISAs for this year's funds. So far so good?

Several weeks later, relised we still hadn't received paperwork so tried ringing them. Wont bore you with all the details but wife couldn't pass their security questions - they said they couldn't say why but I suspect it was for questions like: what date did you open account, account number etc. Problem was that having not received paperwork, we didn't have these details!!!!!

Told us to go into local branch - did this armed with passports etc and staff said that as it's a postal ISA, we had to ring in!!!!

Managed to get her to call in for us and confirm wife's ID and call centre gave us the account number etc and said paperwork would be issued.

Waited another week and when it arrived - shows a 2 YEAR postal ISA - prompting another Victor Meldrew moment!

We'll be off to branch again tomorrow - I will give them a week to sort it out otherwise ALL investments will be heading elsewhere.

I will also ask why Santander do not issue a certificate of investment like all the other companies I have funds with. Their "welcome" letters only give account number and no mention of date investment made, amount invested etc.

"Calm down dear"

Gordon_the_Moron

If you have not funded the easy ISA you can simply leave it and open the flexible ISA without even bothering to close it if you don't want to, as long as you don't pay new money in more than one account a year you are fine.