Santander Cash ISA 2014

savetilibleed

Archi_Bald wrote: »

One of the offers is apparently 2.3% for a 2 year fixed ISA for 123 and Select customers. http://forums.moneysavingexpert.com/showpost.php?p=64891568&postcount=73

I don't know where the 2.3% comes from, except I also saw it quoted elsewhere. But according to Santander it is 1.8%.
Confused.

Poppcorn87

Any news on the interest on their 123 current account? My Natwset ISA rate has dropped ridiculously and I'm now getting around £7 interest a month instead of £15! I was thinking about moving all my savings to the SA 123 account but worried the rates might not stick. Any advice appreciated.

Archi_Bald

The 123 rate is variable so can change any time they like.

I have seen some theories that say Santander will not change the interest rate since the account is called 123. I must admit, I am completely baffled by the apparent logic and don't see any reason why the interest rate should be linked to the account title.

Anyway, my theory is: make hay whilst the sun shines.

anna42hmr

hi
this is from the savings champion email
Santander has announced plans to launch three new ISAs from Monday 10th March. Of particular interest is the new 2 Year Fixed Rate ISA paying 2.30% tax free/AER, exclusively available to those with a 123 current account, 123 credit card or for Santander Select customers. Also being launched is a 2 Year Fixed Rate ISA paying 2% tax free/AER that is open to everyone and a variable Direct ISA Saver paying 1% tax free/AER.

Gizmo247

The Direct ISA Saver rate is too low compared to the industry even prior to the 'isa season'. I would have liked to have seen at least a special variable rate for 123 customers of 1.75% to match Nationwide.

bobbydubs

Am I missing the point here? I have a Santander123 current account which pays 3.00% (2.4% after tax) on balances over £3000, so why would I want to settle for anything less? I'm not a higher rate tax earner. Or is the 3.00% likely to be withdrawn?

drlabman

I realise the new Santander 2-year 2.3% ISA isn't available yet but I'm looking for a home for my matured Halifax ISA whose rate has now dropped to 0.5%. If I transferred this to Santander when it becomes available next week, would I be be able to add next year's subscription to it on April 6th? I'm never sure because often fixed rate savings accounts don't allow additional deposits after the opening deposit.

drlabman

bobbydubs wrote: »

Am I missing the point here? I have a Santander123 current account which pays 3.00% (2.4% after tax) on balances over £3000, so why would I want to settle for anything less? I'm not a higher rate tax earner. Or is the 3.00% likely to be withdrawn?

Yes you're missing something. Santander only pay 3% upto £20K. Any surplus earns nothing.

Archi_Bald

drlabman wrote: »

I'm never sure because often fixed rate savings accounts don't allow additional deposits after the opening deposit.

You need to check the T&Cs - usually there is a date by which you must have made all deposits.

anna42hmr

bobbydubs wrote: »

Am I missing the point here? I have a Santander123 current account which pays 3.00% (2.4% after tax) on balances over £3000, so why would I want to settle for anything less? I'm not a higher rate tax earner. Or is the 3.00% likely to be withdrawn?

Yes, the tax free allowance. As onces it's in an isa as long as you do not withdraw it, it's tax free for life, therefore, adding to the tax isa each year means that when rates rise the more money you have sheltered from the tax man.

That said, whilst I have opened a ash isa to transfer my matured funds into, I won't be paying in for the 2014-2015 tax year till the end of it, as earn better rates elsewhere in meantime (nationwide flex direct, Yorkshire direct, lloyds/tsb accounts etc) even though pay tax on the interest. I will be paying in the years allowance at the end of the year, just so that don't loose this years allowance for when the rates do rise.

Plus if you accumulate large sums in isa's some pay higher rates, I.e for over 20k, 25k, 40k etc.