Santander 2 year Fixed Rate ISA

CONFUSEDMAC

Rules seem to be up to £5940 until 31 May and then up to a total of £15000 before 31st August. So no more of the £15000 can be put into this (or any other ISA) for the rest of the year. Why? The bank said that this is a government restriction. What is the story?

eskbanker

CONFUSEDMAC wrote: »

Rules seem to be up to £5940 until 31 May and then up to a total of £15000 before 31st August. So no more of the £15000 can be put into this (or any other ISA) for the rest of the year. Why? The bank said that this is a government restriction. What is the story?

It's perfectly normal for a fixed rate product only to be available for a short period after opening, but in this case with the change in annual allowance, Santander (as with many others) are relaxing their rules to allow contributions within multiple windows. If you want a product that you can contribute to for a longer period, go with a variable rate one or a Lloyds fixed rate one (one of the few exceptions to the rule).

badger09

badger09 wrote: »

I suspect the 2 year fix @ 2% or 2.3% for 123 account holders, will not be around for long though.

intalex wrote: »

I suspect the same, which is why I called this morning and opened one.

ColdIron wrote: »

Too true, they pulled the easy access and 2 year fix for non Santander customers last year on 8th April. I don't think the Exclusive Major 123 lasted much longer

Still available

Must pay more attention when polishing my crystal ball

badger09

CONFUSEDMAC wrote: »

Rules seem to be up to £5940 until 31 May and then up to a total of £15000 before 31st August. So no more of the £15000 can be put into this (or any other ISA) for the rest of the year. Why? The bank said that this is a government restriction. What is the story?

How much were you expecting to be able to pay in?

£5940 is the current cash ISA subscription limit, which will be increased to £15k in July.

These limits apply to new money being paid in during this tax year, but not to money built up in cash ISAs over previous years.

JGal

I've been told by a member of staff that the select rate of 2.3℅ will be reducing to 2.1% for new account openings from Monday.

Edit : Looks like it's actually dropped to 2%

irm

JGal wrote: »

I've been told by a member of staff that the select rate of 2.3℅ will be reducing to 2.1% for new account openings from Monday.

Edit : Looks like it's actually dropped to 2%

My 123 FR ISA has been open with them since mid-April, and I see it now shows:

The detailed product name for this account is 123 2 YR FIXED RATE ISA 01/06/2016.

It's also had interest credited to it dated June 2nd. Hopefully it's just their systems sorting things out, but I really hope it doesn't mean I've been credited 2.3% interest until the end of May, and then they're only going to give me 2.0% from now on. That's not a fixed rate in my book!

bsms1147

irm wrote: »

My 123 FR ISA has been open with them since mid-April, and I see it now shows:

The detailed product name for this account is 123 2 YR FIXED RATE ISA 01/06/2016.

It's also had interest credited to it dated June 2nd. Hopefully it's just their systems sorting things out, but I really hope it doesn't mean I've been credited 2.3% interest until the end of May, and then they're only going to give me 2.0% from now on. That's not a fixed rate in my book!

The rate will still be the 2.3% one.

innovate

They have always had strange interest payment dates on their FRISAs. I wouldn't worry - but hopefully you have kept screenprints etc for the 2.3% in case you need it.

irm

Santander have now confirmed all is as expected:

Your account is a 123 2 Year Fixed Rate ISA and this is paying 2.3% Gross AER (fixed for the term).
Santander have recently reduced the interest rate of this account, which only applies to new customers.
The date of 01/06/2016 is the maturity date of your Fixed Rate ISA.
The interest settlement period on this account falls on the 1st of June and as your account was opened before this date, interest was received on the 01/06/2014.
This interest payment was calculated from the date of account opening until the 01/06/2014. You will next receive interest on the 01/06/2015.
Therefore everything is in order with your Fixed Rate ISA account.

where_are_we

What interest rate will I get on the new deposit (up to £9060) I make tomorrow to my 123 2Year Fixed Rate ISA which I opened in April with a deposit of £5940 and a fixed rate of 2.3% and maturity date of 1/6/16. I am assuming it will be at the reduced rate of 2% and a new maturity date of 1/7/16. This will in effect give me two 123 2Year Fixed Rate ISA`s with different interest rates for this tax year. Is this correct?
Have other providers of Fixed Rate ISA`s reduced their rates from April? They know we are a captive market because we cannot open another cash ISA with a new provider this tax year.