Santander 2year fixed isa @ 4%

Siobhan789

MOPI wrote: »

I was just wondering if anyone got a confirmation on the maturity date of this account, as some are saying that its 2 years from account opening and then others are stating its sometime in May in 2014. Which is correct?

Thanks in advanace!

It's may 2014 so slightly over 2 years

silvermum

Does anyone know what is allowed under the definition of 'closure' of this account?

I know there is a loss of interest equivalent to 120 days,

BUT

- does this just mean if you close the account and withdraw the funds?

OR
- would 'closure' also cover 'closing' the account to transfer to another ISA account before the end of the 2 year term??

At this 4% rate, it might be worth locking in now, but taking the 120 day 'hit' if a substantially better rate came along in 12 months, say?

dsm52

Siobhan789 wrote: »

It's may 2014 so slightly over 2 years

Given that most of best tranfer deals will be around March/April 2014, any advice on how best to handle the transfer? Looks to me like we'll probably miss out on the best deals in May

I've transferred my previous year's ISA into this 4% one, but not sure whether I want to lock away for 2+ years on 2012-13's allowance too. so waiting to see what comes up.

savetilibleed

Closure *can* mean withdrawal, in which case you lose the tax advantage. But you can certainly transfer and either way take the 120 day interest hit.
You could probably do a few calculations, maybe using a spreadsheet, where you can work out a few scenarios at elevated interest rates, so you can see if you would be better staying put or jumping ship in a year, above a certain elevated threshold, depending on what may be on offer then (or not).

dsm52

silvermum wrote: »

Does anyone know what is allowed under the definition of 'closure' of this account?

I know there is a loss of interest equivalent to 120 days,

BUT

- does this just mean if you close the account and withdraw the funds?

OR
- would 'closure' also cover 'closing' the account to transfer to another ISA account before the end of the 2 year term??

At this 4% rate, it might be worth locking in now, but taking the 120 day 'hit' if a substantially better rate came along in 12 months, say?

Based on my calculations, transferring before maturity would mean you'd have earned 2.68% ((365-120)/365 * 4) for that year rather than 4%. Which means a new deal would have to be at least 5.32% (4-2.68+4)to make up for the loss. Can someone confirm I've got my maths right?

Siobhan789

dsm52 wrote: »

Given that most of best tranfer deals will be around March/April 2014, any advice on how best to handle the transfer? Looks to me like we'll probably miss out on the best deals in May

I've transferred my previous year's ISA into this 4% one, but not sure whether I want to lock away for 2+ years on 2012-13's allowance too. so waiting to see what comes up.

Well it matures on the 1 st so really u could apply for a new is amid April n do the transfer then as it takes up to 15 days n most places allow u some time before t transfer form needs to b in by

OnlyMe_08

Weel, I've applied for this, but am unsure if I selected the correct option for transfer in. The option I selected is 'no new savings' - is this correct?

Also, I thought there would be an ISA transfer form to complete during the application process?

Richchad

OnlyMe_08 wrote: »

Also, I thought there would be an ISA transfer form to complete during the application process?

ISA transfer forms should be emailed to you in a couple of days, mine were after applying online.

badger09

I 'upgraded' my Flexible ISA Issue 3 to this 4% offer on 7th March by phone. I told the adviser that I also wanted to transfer in funds from another provider and probably pay in 2012/13 allowance and was told that I would receive a Welcome Pack containing transfer forms.

Account was upgraded and interest credited on 8th March.

I haven't received anything yet. Am I too impatient? Does anyone know whether sending a completed transfer form downloaded from the website will cause any problems? Santander haters do not need to reply :rotfl:

I would send it to Bradford (based on Siobhan789's apparently authoritative advice ) I don't want to miss the transfer in deadline waiting for a form which might not arrive

Vortigern

badger09 wrote: »

I 'upgraded' my Flexible ISA Issue 3 to this 4% offer on 7th March by phone. I told the adviser that I also wanted to transfer in funds from another provider and probably pay in 2012/13 allowance and was told that I would receive a Welcome Pack containing transfer forms.

Account was upgraded and interest credited on 8th March.

I haven't received anything yet. Am I too impatient?

I don't think you're being impatient. I applied online for their Major ISA and received the transfer form by email the following day. Did you give them an email address? If not, your form may be in the post. You know your account number and sortcode from online banking so get the online form now and send it off. I can't see how this would be a problem. (Even with Santander )