Santander esaver 5 interest up?

SnowMan

10_66 wrote: »

Many thanks for confirming that. Could you just expand on the calculation above, please? I don't know what the symbol after the bracket means.

The ^ symbol means to the power of.

So another way of saying

(1+0.0315/12)^12 is

1.002625 x 1.002625 x 1.002625 x 1.002625 x 1.002625 x 1.002625 x 1.002625 x 1.002625 x 1.002625 x 1.002625 x 1.002625 x 1.002625 = 1.032

where the bit in the brackets 1 + 0.0315/12 = 1.002625

What it means in words is that if you have £1 at the beginning and get 0.2625% interest each month (i.e one twelth of the monthly rate of 3.15%) and then that compounds up 12 times (i.e. you get interest on interest), hence the multiplication, you end up with £1.032 at the end of a year.

This is clearly the same as getting one interest payment of 3.2% at the end of a year (i.e. £1.032 including the initial £1)

Because the 3.15% gross paid monthly is equivalent to 3.2% paid annually it is clear that the intention is that the monthly and annual options are equivalent (i.e. both pay 3.2% AER).

lushplus4

:eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek::eek:

tushingham

matty17r wrote: »

I am another mse who is having problems getting tax deduction certificates for the last tax year for closed accounts. Need to send another secure message to them asking what the problem is for something simple. With regard to issue 5 when do you get the interest paid when you close issue 4 and where do you look? Sorry to be thick!

Hi Matty,
I found it far more useful to ring them rather than secure message if you want a tax certificate. Nightmare on secure message and only a little better on fone but still better.

In terms of the interest on the issue4 you can send them a secure message or ring (better?) and ask them to close issue 4 and pay the calculated accumulated interest into issue 5.

As Ifts says above you could see my prev post #37 and leave issue 4 open in order to make it easier to get a certificatge next year? You would need to keep an eye on when they pay the interest into issue 4 though and transfer straight into 5 manually?

Whatever you do....they're better on the phone!

t

bigfreddiel

savetilibleed wrote: »

Only problem its a bit of a faff to close the zero balance account as I did recently with an Iss 3 eSaver. You can't just close it online - you have to call them.

i just leave mine open with a few pence in each - i don't really care if they're closed or not - its no skin off my nose

molerat

You can take them down to zero balance then just delete from on-screen view. You can bring them back into view as long as they are still open. Monthly interest makes the process easier.

buffman

The bonus on the E-Saver accounts is 'variable'. There are examples of it being raised. What about the bonus being decreased?

debralee_2

I opened the Esaver Issue 5 online yesterday and transferred over my money from my Esaver Issue 4. Sent them an online message and this morning they have closed the account and paid the outstanding interest into the new Esaver. Can't believe how quick and easy it was.

savetilibleed

I opened a esaver 5, transferred the £27 I had in the esaver3 to it. Then a few days later, on 2 June, on the phone, asked for esaver3 to be closed. I thought I'd transferred at a point when there would be no interest, but no - I got a cheque for £0.01 this morning! It'll cost me more than that in shoe leather to take to the bank! :rotfl: They said a tax deduction certificate will follow.

b814sn1

Mmm. I have opened Esaver5 and closed esaver4 via secure message.

I had approx 60K in the old account since Sept last year. At 3.1% for 8 months at 20% tax I reckon I should have

600000 x 3.1/100 x 0.8 x 8/12 = £992 interest due.

However they have only put £93.56 into my esaver5 !!!!

As the interest is paid on the anniversary of opening I know I haven't had any interest yet.

Have I made a big mistake here? Have I missed some smallprint about closing the account within a year?

Ifts

b814sn1 wrote: »

Have I made a big mistake here? Have I missed some smallprint about closing the account within a year?

I am not aware that you had to keep the eSaver 4 open for the full 12 months to receive 3.1%. I and others in this thread didn't and just transfered their issue 4 to 5 before the 12 months was up.

Interest rate conditions - Not applicable. No conditions. Variable rate bonus interest paid in the first 12 months.

eSaver issue 4 T&Cs: http://www.santandercards.com/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223420520571&cachecontrol=immediate&ssbinary=true&maxage=3600

From what you say in your post I also make it ~£992 interest due (for 8 months, although depending when you opened it in Sept-11 it may be closer to 9 months considering this latest eSaver issue 5 rates are effective from 9th June 2012), so don't know where they got £93.56 from (almost as if they forgot to put a 9 before the 93!), although I did read in this thread some got a cheque in the post (maybe there is one on its way to you?).

Whatever answers you get on here will probably be as good as a guess as yours.
If I was you I would give Santander a call to get to the bottom of it.

Here is a free phone number for Santander: 0800 7317 774

If possible please do update your post with the outcome.