Santander eSaver

Almost_2

Hi All,
I have a quick question about the Santander eSaver account, the interest rate is as follows:
3.10% gross/AER including bonus of 2.60% rate for 12 month from opening an account, interest can be paid monthly or annually.
So does this mean I get the bonus AER interest rate each month regardless of my withdrawals or do I get the bonus if I leave my money in for 12 months? It says unlimited withdrawals but I don’t know if this has an impact on the bonus.

molerat

You get the full interest, there are no strings.

newfoundglory

You can make withdrawals, and you don't lose the bonus.

If you have the interest paid monthly, the gross monthly equivalent is 3.06% (because you are then earning interest on the interest being added - but the AER is still 3.10%)

bengal-stripe

The interest is calculated on your daily balance, added up and (if you opt for monthly payments) credited to your account once a month (on the 20th).

Once the year is over, the rate will drop dramatically from over 3% down to 1/2%. At this point (if you want to receive a good interest rate) you will have to open another, better paying account, with whoever offers a good deal in a year's time.

Almost_2

That's great, thanks for all your responses.

boobbby

Just as a matter of interest has anybody tried to take out an Esaver recently. I have taken out 2 but both times have had to do it by phone as the Santander site wont recognise any email addresses I have used !

Not_a_Newbie

I opened one online on Thursday. Didn't have any problems.

boobbby

Not_a_Newbie wrote: »

I opened one online on Thursday. Didn't have any problems.

I was in the Santander branch and one of he staff pointed out he had just opened an Esaver without a problem earlier in the day .. to prove it he pretended to open another one in front of me.. he couldn't as it would not accept his email address !!

toady

Can anyone help with a maths question: which would bring a better yield, a Santander e-saver at 3.10% (basic rate taxpayer at 20%) or a Santander ISA at 2.81% (obviously tax free)?

I don't even know where to start with that one- thanks!

psychic_teabag

3.10 * 0.8 = 2.48

So the taxable e-Saver at 3.10% gross will give you 2.48% after basic tax is deducted.

toady

Aha! Now I see how to do it- many thanks!