Santander 2year fixed isa @ 4%

KTF

Cross posted from the best ISA thread...

I have gone for the Santander 4% 2 year one over the phone as my existing ISA was with them and I wanted to transfer it.

Although it wasnt due to mature until the beginning of April they upgraded it over the phone to the new rate as its an instant access one so its now earning 4% rather than the 3.x is was currently on.

Took about 20 mins to setup as they had to read out all the legal t&c, explain the features, etc. (the call centre guys must get fed up of that after a while) but at the end of the call the upgrade was done and already showing online.

Will top it up with next years allowance in April then think about applying for the Zero account after 3 months.

Edit: Seems the Zero Current account has been pulled with the launch of the 123 account

Ageing_Stick_Insect

If I've understood things correctly then my 2 year Santander ISA which matured on 1 March 2012 will be eligible for immediate transfer into this new 4% ISA and then on 5 April I can add the 12/13 allowance to it.

Sounds like a brilliant deal as I'm only getting 0.5% since last Thursday. Hard to see anyone beating it.

innovate

lanstrom wrote: »

What happens if Barclays takes longer than 14 days to do the transfer ? When I went from Barclays to Lloyds last time it took a full 28 days

Santander CS advised me to take the completed transfer form into a branch to have it stamped. They will them pay interest from the date they stamped the transfer form.

So no need for you to worry how long the transfer actually takes.

I haven't tested this with Santander yet, but worked along exactly the same lines when I transferred 3 ISAs to Lloyds. Seems to be an industry standard - - but confirm it for yourself with Santander before relying on my say so.

Ifts

Mr_K wrote: »

yes, but its Santander. Can you guarantee you'll ever be able to access your money again

I see what you are saying but hopefully they have improved their service now, this from that article above:

Santander missed out on a place in our 'five favourites' hot-list last year due to lingering customer service concerns.
It was plagued by transfer delays in 2010 and This is Money was deluged with hundreds of gripes over its service. A relatively bungle-free 2011 and very impressive best buy rates have secured its return.

http://www.thisismoney.co.uk/money/saving/article-2110522/Here-come-big-guns-Santander-overshadows-Halifax-THREE-best-buy-Isas.html#ixzz1oGqfhVnC

Apart from their FP limit, I have not had any problems with Santander myself (although plenty on here have) maybe I have been lucky!

I see from the Halifax thread you were having problems with the correct rate being displayed online for your ISA, they are probably having the problem of incorporating the Lloyds and Halifax systems just like the days when Santander incorporated the Abbey computer system (when they had the nightmare customer service experience).

No I cant guarantee you'll ever be able to access your money again if you go with Santander BUT one thing for sure about Santander coming out with good ISA rates, it might just give a kick up the @rse to the other financial institutions to offer better ISA rates. One can only hope!

dollywops

My son transferred his loyalty flexible ISA over the phone last night. Apart from having to listen to tedious recordings and the operator repeating herself, it was all done and within seconds of the conversation ending, the ISA was showing as a Fixed Rate ISA on his internet banking details.

Will be putting in next year's allowance on 6 April.

If you are an exisiting Santander ISA customer and going to do this over the phone, make sure you have your NI no to hand - the operator asked my son for this.

innovate

dollywops wrote: »

Will be putting in next year's allowance on 6 April.

I hope your son will be able to do this - - they told me that there is only a 14 day window for funding the ISA, so it might not be possible to put new money in on April 6 on anything opened already.

Mind you, your son could probably open a second 2-year fixed ISA for 2012/2013.

KTF

From: http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237908316644&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_ViewSelector

• Transfer in your existing cash ISAs.
• Pay in up to your 2012/13 cash ISA allowance between the 6th and 14th April 2012.

Looter

This might sound like a daft question but at the end of year one, ie the end of 2012/13 tax year, will 4% interest be calculated and added to the lump sum or will interest just be calculated at the end of the term?

bxboards

innovate wrote: »

I hope your son will be able to do this -

On the phone they told me I could pay in my 2012 - 2013 allowance between 6th and 14th April.

dzug1

Looter wrote: »

This might sound like a daft question but at the end of year one, ie the end of 2012/13 tax year, will 4% interest be calculated and added to the lump sum or will interest just be calculated at the end of the term?

It's a bit academic really - it will be 4% AER whenever it's paid. If interim payments are made they won't be at 4% but at a rate that when compounded at the end of the term equates to 4%

It will almost certainly actually be be calculated on a daily basis.