Santander ISA's launch on 8th March

gwapenut

I have a current account with FD and santander. Some may find it strange, but I think I'd tend to trust Santander @2.5% for a year rather than FD @ 3% for TBC, despite FD's reputation for excellent customer service.

Why?
a. As has been said, FD are almost as bad as other banks for dropping rates
b. FD have had this rate for > 1 year in a different ISA rates era, I think it will drop shortly after ISA season
c. Don't like FD internet banking so want to move my account away!
d. When FD drop rates, they do it without rolling the issue number. My rate could fall within 3 months
e. Santander drop rates by rolling the issue number. I know my rate for a year.
f. Santander allow ISA transfers from their own ISAs, and achieve the transfer in 5 minutes by redesignating the account. Nationwide took 3 months for an internal transfer for me, with my money disappearing for 1 month (!) and FD don't allow internal transfers. So in a year's time I should have more options for moving my money with minimum hassle
g. A year or two ago, Santander launched an ISA at 3.3% then bumped it up a week or so later to 3.5% in response to competition. They also bumped up the rate for those who had already taken out the previous version, without anyone needing to ask for the higher rate.

oldfella

at a balance of £40K you make around £4 a week more at FD. Should the rate go down in 3 months time, you can transfer it, allowing a generous 2 weeks with no interest and you are still ahead

innovate

It is a myth that you will lose interest because of transferring your ISA. You get interest until day x from your old provider, and interest from day x +1 from your new provider. Some providers even pay you the new interest from the day they receive the transfer form, so you get a double whammy for a few days.

The fact that your money might disappear from view whilst in transit doesn't invalidate the interest rules.

The ISA transfer rules can be downloaded from the bottom of this page http://www.bba.org.uk/media/article/revised-version-of-the-cross-industry-cash-isa-to-cash-isa-transfer-guideli

mace

I have nearly £60K worth of ISA sitting with Skipton @ 3.1% this will drop to 2.6% in April.

I have a current account with Santander. So keen to know what their new ISA rates will be. Thier highest ISA rates in the past seem to only be available to current account holders.

I am seriously considering switching my current account to First Direct to get the 3% ISA rate and take advantage of the £100 cash they give you for switching.

In addition First Direct are also doing a regular monthly saver (max £300/month) @ 6% which is pretty nice.

Like others have said my only worry is that First Direct might drop the ISA rate but it is an easy access account so can move it any time! Their other savings rate are pretty poor though.

Will wait a week before deciding...

Purple_Rein

Have been in Santander this morning - staff gave me a leaflet which is due for release on Monday:

2.8% Major ISA - 2 year fixed rate
123 customers get enhanced rate of 3%
Additional one-off bonus of 0.1% if Rory wins eligible golf tournament (only if you apply by 11 April)

funnyguy

Thanx for that.do you know if they accept transfers?

Purple_Rein

Hi - yes you can transfer in existing ISA accounts

PotatoPotato

Purple_Rein wrote: »

Have been in Santander this morning - staff gave me a leaflet which is due for release on Monday:

2.8% Major ISA - 2 year fixed rate
123 customers get enhanced rate of 3%
Additional one-off bonus of 0.1% if Rory wins eligible golf tournament (only if you apply by 11 April)

Does it have a limit on the number of deposits allowed? thanks

innovate

PotatoPotato wrote: »

Does it have a limit on the number of deposits allowed? thanks

with almost guaranteed certainty.

Why don't people just wait until Monday when they can read the entire T&Cs on the Santander website?

PotatoPotato

innovate wrote: »

with almost guaranteed certainty.

Why don't people just wait until Monday when they can read the entire T&Cs on the Santander website?

I think we're just excited over a competitive ISA, since the rest have been really poor

We can only wait till Monday to apply anyway but since someone has some information and asking for it cant hurt. It'll also give us an extra day of decision making

My existing ISA has its rate dropped for a week now, I should really take action.