Santander bending rules for Preferred Account

Gollygumdrops

Hi just a word of caution regarding opening a Preferred Current account. We opened ours specifically for the 5% interest and £100 freebie! We transferred most of our direct debits over and pay in well over the required £1,500 per month, so no problem getting interest etc. so we thought.

First month Santander gave us minimal interest as we had only deposited a small amount into our new account to cover the few direct debits that had been transferred from our old account. No worries so far.
However, when the second month's interest was due (27th of month) it didn't show in our account and we had paid in well over minimal amount. I immediately phoned Santander and after an hour (at my cost) was told that unfortunately I would not be getting any interest as the deposit had been paid in a day late!!

I was amazed as I had specifically phoned in and asked the very question two/three weeks earlier. My husband's money always goes into the bank account on 25th of each month. The previous month had gone in on 24th as the 25th fell at the weekend. Now we realised that we wouldn't be getting the £100 bonus for swapping over either!!

Santander are now trying to say that we opened our account on 25th of the month so according to their ruling (not very obvious when opening account!) their monthly span would mean we would have to pay in the money up to the 24th of the month.

However, I opened the account on-line at 8pm on 25th May and at that date didn't know whether I would even be given an account. It wasn't until next day 26th May that I had an email from them confirming that an account had been opened,. although I had no account number or any sort code details etc, so basically unable to use it for anything!

To conclude, my gripe is I see my account as being opened on 26th of the month (even though I still didn't have an account number!) so my month time limit should be based on payments being received between 26th - 25th of the month the date of husband's wages.

I have obviously put in a formal complaint to Santander but as seems the norm, despite emailing for updates etc have heard diddly squat from them (2 weeks).
Incidently I have moved large sum from my current account back to old bank account and will definitely be closing this new account and taking all my savings away if they insist on renegading on their promise!

Thank you for listening and goodnight!

adindas

Yes, you need to pay on a certain agreed date depends on the date when they pay the interest:

"Note 2: You must make the minimum monthly payment within certain dates each month to qualify for a preferential rate. These dates are
different for each customer and we decide on them depending on when we pay the interest. For example, if we pay your interest on the 7th of the month, you must pay money into your account between the 7th of this month and the 6th of the next month. Please see your current account statement or visit online banking to find out which date we will pay your interest"

Gollygumdrops wrote: »

Hi just a word of caution regarding opening a Preferred Current account. We opened ours specifically for the 5% interest and £100 freebie! We transferred most of our direct debits over and pay in well over the required £1,500 per month, so no problem getting interest etc. so we thought.

First month Santander gave us minimal interest as we had only deposited a small amount into our new account to cover the few direct debits that had been transferred from our old account. No worries so far.
However, when the second month's interest was due (27th of month) it didn't show in our account and we had paid in well over minimal amount. I immediately phoned Santander and after an hour (at my cost) was told that unfortunately I would not be getting any interest as the deposit had been paid in a day late!!

I was amazed as I had specifically phoned in and asked the very question two/three weeks earlier. My husband's money always goes into the bank account on 25th of each month. The previous month had gone in on 24th as the 25th fell at the weekend. Now we realised that we wouldn't be getting the £100 bonus for swapping over either!!

Santander are now trying to say that we opened our account on 25th of the month so according to their ruling (not very obvious when opening account!) their monthly span would mean we would have to pay in the money up to the 24th of the month.

However, I opened the account on-line at 8pm on 25th May and at that date didn't know whether I would even be given an account. It wasn't until next day 26th May that I had an email from them confirming that an account had been opened,. although I had no account number or any sort code details etc, so basically unable to use it for anything!

To conclude, my gripe is I see my account as being opened on 26th of the month (even though I still didn't have an account number!) so my month time limit should be based on payments being received between 26th - 25th of the month the date of husband's wages.

I have obviously put in a formal complaint to Santander but as seems the norm, despite emailing for updates etc have heard diddly squat from them (2 weeks).
Incidently I have moved large sum from my current account back to old bank account and will definitely be closing this new account and taking all my savings away if they insist on renegading on their promise!

Thank you for listening and goodnight!

sammi.jo

Unfortunately, they have acted well within their rights and they can say you should have looked this up before relying on it. Santander are a wunch of bankers though...

exel1966

The funding requirement is £1K per 30 days, not £1.5K per month, there is a very distinct difference.

As I see it you applied for an account on the 25th, therefore that's the date mark to be used which Santander are obviously doing. They may as a gesture of goodwill pay you the interest, but I can't see that they've done anything wrong.

Gollygumdrops

Thanks for your replies. No worries if Santander insist on this stance, even after I specifically phoned and was advised there would be no problem with interest each month, its off to the Financial Ombudsman for me. Nowhere in my application did it advise about a date when the interest would be paid or in any subsequent letter.

I shall do what I always do when disatisfied with any service I receive I shall walk away and take all my accounts with me. (almost £100,000!) their loss not mine x

hermante

Gollygumdrops wrote: »

To conclude, my gripe is I see my account as being opened on 26th of the month (even though I still didn't have an account number!) so my month time limit should be based on payments being received between 26th - 25th of the month the date of husband's wages.

When you say you "see" the account as being opened on the 26th, what are the dates on the monthly statement you received?

If you didn't get the interest for the second month, you should also have been charged £2, which is the "underfunding fee". Did you get charged this?

This won't help you, but if anyone else wants to open an Santander current account, you should probably open it in branch and approx 15 days after your salary gets paid in. If you cut it close like the OP there will eventually be a month where you get paid too early or too late (because of weekends and public holidays) and get into trouble.

Toe-Jam

You would have got a statement after the first month, and it is clear on that what your statement cycle is.

Here is mine for example, its hard to miss

Gollygumdrops

Reply to Toe-Jam

Nice looking statement.

- how come yours isn't for 30 days like everyone elses should be???

This manipulation of dates by Santander is exactly my point!

:rotfl:;)