Santander ISA's launch on 8th March

innovate

All instant access accounts are likely to have variable interest rates. They may have a fixed bonus element to it, but usually the underlying rate is variable.

Fixed term ones are usually fixed rate as well.

gwapenut

innovate wrote: »

All instant access accounts are likely to have variable interest rates. They may have a fixed bonus element to it, but usually the underlying rate is variable.

Fixed term ones are usually fixed rate as well.

That's not been true of Santander in recent times, if you mean it can vary downwards. They've tended to offer instant access with a hefty bonus above base rate, and often a floor guarantee too.

So for instance, the 2.5% might be phrased as "base + 2% with a minimum rate of 2.5%" if it were done like recent offerings.

That is very, very different from First Direct's rate of "3% for ... at least a month? Maybe 6 months? A year? But looks too generous? Who knows? Could be 0.5% in 5 months"

Alex92_2

innovate wrote: »

Just to avoid confusion, the First Direct Cash ISA is an instant access ISA - no 1-year commitment is required. You probably meant the AER is 3% for £40,000+.

Yeah oops, I meant 1 year (12months) AER is 3% on £40K+, not that it was fixed for 1 year.

innovate

Appreciate FD can drop their rate tomorrow but they have had this rate for a long time, without any gizzmos.

Santander have dropped their ISA rates countless times since last April (e.g. 3.3% to 2.5% for the Direct ISA)

http://www.santander.co.uk/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223429657055&cachecontrol=immediate&ssbinary=true&maxage=3600

innovate

Alex92 wrote: »

...1 year (12months) AER ....

The A in AER stands for annual

gwapenut

innovate wrote: »

Appreciate FD can drop their rate tomorrow but they have had this rate for a long time, without any gizzmos.

Any idea how long they HAVE had this rate?

gwapenut

innovate wrote: »

Santander have dropped their ISA rates countless times since last April (e.g. 3.3% to 2.5% for the Direct ISA)

http://www.santander.co.uk/csgs/StaticBS?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1223429657055&cachecontrol=immediate&ssbinary=true&maxage=3600

Actually, in the context of this discussion, you are wrong. Yes they have dropped the rates, but whenever they do this they roll the issue number. The rates are not dropped for existing savers.

If you look at the interest rate tables you have referenced, you will see they back up what I was saying for the latest 3 issues about a hefty bonus guaranteeing the rate to be at least X % (although I see no mention of a floor collar)

Rates effective from 15 October 2012. Includes a variable rate bonus for 12 months of 2.00% tax free/AER (variable) from account opening or transfer

Rates effective from 17 September 2012. Includes a variable rate bonus for 12 months of 2.25% tax free/AER (variable) from account opening or transfer.

Rates effective from 2 August 2012. Includes a variable rate bonus for 12 months of 2.50% tax free/AER (variable) from account opening or transfer.


This is much better than the (non-) guarantee FD are offering. However, FD may be less cynical and may maintain their (very generous) rate for more than a year.

Porcupine

I dig some digging on specifically this point. The rates have been the same for just over a year. It turns out First Direct are equal players in the 'crank the rate down' game, only they do it without renaming the account.

They're also taking 5 weeks and counting to transfer my ISAs

ses6jwg

I have worked for Santander for 3 years and in that time I have NEVER seen them reduce the rate on an existing issue of an easy access account within the 12 month bonus period.

I have seen them INCREASE it once, I think it was on the e-saver issue 3 possibly.

As has been said, they do sometimes bring out a new ISSUE of that product with a lower rate. Hence why we are up to Direct ISA Issue 14.

On the point someone made about "why would you take a 2.8% 2 year fix when you can have a 3% fix with the same bank?"

Try telling that to customers! I have customers who moan about a 0.25% difference on their bonds... but then are quite happy to have 10k sat in their Barclays/Natwest/HSBC bank account and won't even enter into a discussion on the 123 bank account because they've been with Natwest/Barclays/HSBC for 30 years/ their Dad banked there/ they like the colour of the debit card/ they fancy the girl on the welcome desk!

veryintrigued

Maybe the delay is due to Rory's 'wisdom teeth problems'