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MSE News: Santander to pay interest upfront but is it a good deal?

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MSE News: Santander to pay interest upfront but is it a good deal?

edited 3 November 2011 at 11:48AM in Savings & Investments
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MSE_GuyMSE_Guy MSE Staff
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I've been Money Tipped! Newshound! Chutzpah Haggler
edited 3 November 2011 at 11:48AM in Savings & Investments
This is the discussion thread for the following MSE News Story:

"Santander will pay interest upfront on its new account in the latest move by banks to tempt savers ..."
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Replies

  • What about inflation? The cash now will have more value than in 3 years. Shouldn't this be factored in as well?
  • edited 2 November 2011 at 8:18PM
    celtic123celtic123 Forumite
    116 posts
    edited 2 November 2011 at 8:18PM
    cant open that link atm. depends on length of bond and interest offering. i wouldnt invest any money that wouldnt be on par with inflation. boe predict it will drop sharply in jan. but no one knows yet how the quantative and credit easing will affect inflation in next year or so. in normal times you can predict to a large degree of accuracy. but in normal times the stock market booms with low base rate and bond interest drops. we are seeing reverse lol.hard to predict atm
  • ViolaLassViolaLass Forumite
    5.8K posts
    If you can't withdraw the money early then I don't see that it matters when it's paid.
  • The rate seems poor, so why bother?
  • ViolaLass wrote: »
    If you can't withdraw the money early then I don't see that it matters when it's paid.

    why not? alot of people investing alot of money are interested in such schemes, such as pensioners.
  • ViolaLassViolaLass Forumite
    5.8K posts
    celtic123 wrote: »
    why not? alot of people investing alot of money are interested in such schemes, such as pensioners.

    Because if you can't withdraw it early, then whether you're paid at the beginning, end or in the middle, you will end up with the same lump sum at the end (when you can access the money).
  • ViolaLass wrote: »
    Because if you can't withdraw it early, then whether you're paid at the beginning, end or in the middle, you will end up with the same lump sum at the end (when you can access the money).

    yeah thats true to adept ppl. but trust me alot of ppl are interested in accounts like that. if you want liquidity i guess you are best with 'real bonds'.
  • callum9999callum9999 Forumite
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    celtic123 wrote: »
    yeah thats true to adept ppl. but trust me alot of ppl are interested in accounts like that. if you want liquidity i guess you are best with 'real bonds'.

    You're making no sense?

    As they understood it (and how I understand it - but am sceptical I've got it right), the only difference is you will have a bigger digit written down next to your name for 3 years.

    If you aren't allowed to make a withdrawal for 3 years, it makes zero difference when you are paid the interest within the period. It makes so little sense to me that I'm sure it must have been explained wrong?
  • callum9999 wrote: »
    You're making no sense?

    As they understood it (and how I understand it - but am sceptical I've got it right), the only difference is you will have a bigger digit written down next to your name for 3 years.

    If you aren't allowed to make a withdrawal for 3 years, it makes zero difference when you are paid the interest within the period. It makes so little sense to me that I'm sure it must have been explained wrong?

    what doesnt make sense to you? there are numerous 'bonds' like this. that indicates demand. however for someone more proficient they would be better getting regular bonds you can sell before maturity. does that make sense?
  • slopemasterslopemaster Forumite
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    No, it makes no sense at all!
This discussion has been closed.

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