Santander 3.5% additional deposit timeframe

blueberrypie

You are correct about paying in extra money. It's a variable-rate ISA, so you can add funds whenever you want.

However you've misunderstood the bonus. You will get 3.3% for the first twelve months, regardless of whether you withdraw/transfer funds before the end of that time. The bonus is simply a way of them saying "you'll get this rate (including bonus) for the first twelve months, and then this rate (without the bonus) after that".

Again, though, it is a variable rate, so the interest rate could change, even within the first twelve months.

Adammmmm

I guess I am a bit dense when it comes to ISAs, but my situation is a little awkward.

The Santander terms state 'For accounts opened in the 2011/12 tax year, additional deposits are allowed between 6 April 2012 and 14 April 2012 - which means you can also deposit your 2012/2013 cash ISA allowance', So the account would need to be opened before April 6th in order to pay 'New Money' in next year (Before 14th April).

Also, you only have 14 days from opening the Santander account to credit it, so I thought it might make a little more sense to me if i drew this up in a bit of a table to try and understand it.

Does this look right to you folks?


I am basically thinking of doing the following:
- Open Santander ISA on April 5th (still the 2011/12 tax year)
- Credit the account with my full allowance of £5,640 on 6th April
- Then finally transfer my existing Halifax ISA across to the Santander account on 16th April (The Halifax 1 year term does not end until the 15th April)

Do you think that would all be ok?
Sorry for the awkward diagram and everything, I am just having a little confusion as to the best way to get this sorted...

You folks really have been a huge help as ever though!
Thank you so so much for all of your help with everything

mbailey

The first thing that comes to mind is if you are not putting any money in for the 2011/2012 tax year and you are also not transferring in this tax year, why bother opening the account on the 5th April?

There is a very big BUT here and that is we don't know how long Sandander will keep the deal open for.

There is nothing to stop them keeping the deal open for the new business into the next tax year. There is nothing in the T&C's which state that the account must be opened in the 2011/12 tax year, BUT as I mentioned Sandander could close the account for new business anytime.

For example they could decide to close it tomorrow for new business if they have taken enough money in already.

Vortigern

Adammmmm wrote: »

I am basically thinking of doing the following:
- Open Santander ISA on April 5th (still the 2011/12 tax year)
- Credit the account with my full allowance of £5,640 on 6th April
- Then finally transfer my existing Halifax ISA across to the Santander account on 16th April (The Halifax 1 year term does not end until the 15th April)

Easier way.

• Open Santander account now before they withdraw it
• Complete transfer form and tick the box to "serve notice period before processing"
• Credit new money on 6th April

You need submit the transfer form within 14 days of account opening, but the actual transfer can happen later.

Nice diagram though

mbailey

Vortigern wrote: »

Easier way.

• Open Santander account now before they withdraw it
• Complete transfer form and tick the box to "serve notice period before processing"
• Credit new money on 6th April

You need submit the transfer form within 14 days of account opening, but the actual transfer can happen later.

Nice diagram though

I hadn't released the form allows that so that looks like a perfect option!

From what I have read as long as Sandander have the transfer form with in 14 days of account opening it should be ok.

Adammmmm

mbailey wrote: »

The first thing that comes to mind is if you are not putting any money in for the 2011/2012 tax year and you are also not transferring in this tax year, why bother opening the account on the 5th April?

The Santander terms state 'For accounts opened in the 2011/12 tax year, additional deposits are allowed between 6 April 2012 and 14 April 2012 - which means you can also deposit your 2012/2013 cash ISA allowance', So the account would need to be opened before April 6th in order to pay 'New Money' in for the 2012/13 year (Before 14th April).

Vortigern wrote: »

Easier way.

• Open Santander account now before they withdraw it
• Complete transfer form and tick the box to "serve notice period before processing"
• Credit new money on 6th April

You need submit the transfer form within 14 days of account opening, but the actual transfer can happen later.

Nice diagram though

Wow that does sound perfect! I shall get it all sorted this evening once I get home!

Thank you everyone so much for all of your assistance! This really is one of the most helpful sites on the web! Have a great day everyone!

mbailey

Adammmmm wrote: »

The Santander terms state 'For accounts opened in the 2011/12 tax year, additional deposits are allowed between 6 April 2012 and 14 April 2012 - which means you can also deposit your 2012/2013 cash ISA allowance', So the account would need to be opened before April 6th in order to pay 'New Money' in for the 2012/13 year (Before 14th April).

Not necessarily. That just says "For accounts opened in 2011/12...", it doesn't specify that it must be open before end of 2011/12 tax year.

If an account is opened in 2012/13 tax year you would just have 14 days to open the account and make any deposits or transfer from the day you opened the account.

BUT as I said, we don't know how long Santander will keep the account open for. It could be a gamble waiting to see what happened though.

Of course we could have another bank come along in 2 weeks time with an even better deal, but all we can do is make a decision with the information we have today.

I agree the suggestion from Vortigern looks the perfect solution to do now.

keeleyh

mbailey wrote: »

This is how I would answer the questions:

a) Yes - close current ISA account (ie Halifax). You have to transfer the whole balance, so no reason to keep it open.
b) Yes
c) Yes - (This just means you can pay in upto the £5340 this tax year if you haven't already paid in this amount into your halifax account.)
d) Yes - as you opened this tax year, you need to transfer the whole amount.

Thanks Mbailey, thats was what I did think first but the pdf document is abit clever with the check boxes, and does not allow me to choose them with that combo. I will call them up and see what they say, I'm new to transferring isa's. I think it's the first 2 questions, I choose yes to both but under them it says this...

=====================

If you answered Yes to question (a), please ignore questions (c) and (d).
If you answered Yes to question (b), please complete questions (c) and (d).
=====================
I answered yes to both so would i complete questions c and d? thats where it is going wrong I think

mbailey

keeleyh wrote: »

Thanks Mbailey, thats was what I did think first but the pdf document is abit clever with the check boxes, and does not allow me to choose them with that combo. I will call them up and see what they say, I'm new to transferring isa's. I think it's the first 2 questions, I choose yes to both but under them it says this...

=====================

If you answered Yes to question (a), please ignore questions (c) and (d).
If you answered Yes to question (b), please complete questions (c) and (d).
=====================
I answered yes to both so would i complete questions c and d? thats where it is going wrong I think

I think the form is correct.

If you say yes to a) then it doesn't matter about c) and d). If you have said you are closing the account then it must mean that everything is being tranfered.

The answer to b) is relevant as the new bank will want to know if you are planning to (or able to) pay any more in this tax year. Again because you have said yes to a) it doesn't matter about the amounts so you can ignore c) and d) again.

So I think you tick yes to a) and yes to b) and you can ignore c) and d).

But yes I agree the form is confusing and not very clear!