Santander Cash ISA Interest rate Confusion

ramjug

Hello,

I opened my Cash ISA for 2011/2012 last april (april 9th) and rate was 3.3%. Now on 2nd March, i was paid interest by santander prompting me to think that my Cash ISA period is off and rate has been degraded (12 month bonus period is off).

Now yesterday when i called santander, they confirmed that my Cash ISA 3.3% rate is off and my Cash is now earning .5% but they cant change anything on call so i need to go to their branch.

Today i went to their branch and requested my money to be put in some another ISA where i can earn more than .5% for time being, they siad my account is still earning 3.3% but its santander policy to pay interest in march and i'll get another payment(interest) in april for my one month.

Whom should i believe now? Call centre says .5%, Bank employee says 3.3% . I'll call again today and see what come up with.

Cheers :beer:,
Jay

tipsychick

I have this one too. I think the branch staff member is the more correct of the two.

My understanding is that 3.3% interest was paid annually on 1/3/12. You'll continue earning the 3.3% interest until the 12 month anniversary of account opening, so 9/4/12 in your case. After that the rate will drop to 0.5%.

Where I differ from the branch staff's interpretation is that I don't think you'll receive a second interest payment in April 2012 for your one month though. I don't think you'll get that one month's interest until 1/3/13 or until you close the account/transfer away, which I'm sure you'll be doing on 9/4/12 when the rate drops.

Consumerist

tipsychick wrote: »

Where I differ from the branch staff's interpretation is that I don't think you'll receive a second interest payment in April 2012 for your one month though. I don't think you'll get that one month's interest until 1/3/13 or until you close the account/transfer away, which I'm sure you'll be doing on 9/4/12 when the rate drops.

Quite right.

Interest is paid yearly at close of business on 1 March but bonus interest continues to be earned until the account anniversary when it drops. This interest will be paid on transfer.