Santander eSaver Issue 5

pqrdef

Go to this page and click on "Click here"

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1237891697979&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateG

The answer is 3.1%.

I did see 3.0% stated somewhere but that must have been a mistake.

pqrdef

If there were rumours about the Spanish parent company, I don't see the great British public saying "we don't care, our money is safe". I see them queuing round the block.

So the question is whether the financial structure would make it possible to mount a quick rescue of the UK operation, irrespective of the state of the parent group.

srcandas

SavingSteve wrote: »

MiserlyMartin should read post 16 of this thread.

https://forums.moneysavingexpert.com/discussion/3911701

Steve I appreciate you pointing to my post but I would hate anyone to miss understand the concerns about Spain.

Miserly points out some issues with Spain but does not mention the level of open corruption and the fact the banks (in general there may be an exception but my spanish contacts do not see one) are running out of cash. Many have an enormous portfolio of domestic housing which is valued way above any achievable sale price.

Further in Spain dole money is not paid forever (the social safety net is not anything like that in the UK). With 50% youth (16-25) unemployment rising and those that are employed being on short contracts with no security civil unrest I believe is a certainty on a scale not yet seen in Europe.

No one has any solutions to these problems apart from the extreme pain and suffering withdrawal from the Euro would have. But at least they could then devalue the new peseta and become competitive once again (although that is but one of many problems). Another route might be the break up of Spain but the underlying problems would still need to resolved.

So I think one has to take the possibility of serious disruption to the Santander operation seriously. It is certainly good news to hear the bank uses strong ring fencing from an ex employee and that being so the risk to UK investors may be very small - but not zero.

So agree Miserly´s comment may not have been tactful or necessarily in context of the thread but the status of Spain should not be ignored.

With large numbers of unemployed family there I hope it comes good but I really don´t see how.

LeafGreen

I get monthly interest on mine so it's possible to see from one month to the next if the IR has changed. Not sure if it's possible to change from annual to monthly interest but worth a try - I don't think you lose out much overall, if at all.

RetiredInThailand

atypical wrote: »

The way there isn't a mechanism of notifying holders of any changes suggests changes will be in the customers favour.

Well, that's certainly one way of looking at it. I cant say it sounds at all likely to me though.

I have had many years experience of banks cutting deposit rates quietly without telling anyone, but I have rarely if ever known a bank to increase a rate without making a song and dance about it.

If Santander really intended the "variable" to only mean that they might put the rate up at some point to match competitors then I think that they would probably have said "upwardly variable" instead, or said "minimum bonus rate". To use the word "variable" on its own can only be because they want to retain the right to change it by as much as they like, whenever they like, and in whichever direction they like. Say for example that average interest rates dropped significantly elsewhere during the term; I'm sure that Santander would have used this as a reason to cut the bonus.

All that said, the rate will probably stay where it is until the end of the 12 month term, given the current economic situation.

SavingSteve

MiserlyMartin wrote: »

Whats pathetic to me seems to be your grasp of economics and even current affairs.

:rotfl: :rotfl:

ses6jwg

MiserlyMartin wrote: »

Whats pathetic to me seems to be your grasp of economics and even current affairs. I will keep it simple so you understand...

Spain: Is in recession
Spain: Civil unrest on the streets due to budget cuts and unemployment
Spain: 10 year bonds rose above 6% once again only last week
Spain: Spain's debt-to-gross domestic product ratio will soar to 79.8 percent in 2012 say it's government (nearly as bad as the UK)
Spain: The government expects the jobless rate, already the highest in the industrialised world - to hit 24.3 percent this year as the economy continues to reel from the collapse of a property boom in 2008

If there is a run on Santander I would rather not have the hassle of having the money in there. The only thing they offer is half decent rates, then so did Icesave so you take the risk if you like.

Now where was your link to Santanders webpage which shows the current rate for the esaver issue 4 account to be still 3.1%?

Santander has a smaller exposure to the Spanish economy than many "British" banks such as RBS and Barclays.

Around 29% of their assests are based in Spain/ Portugal. Just under half are based in Latin America.