Santander Fixed Rate Bonds - STUCK - HELP!

CastleKeeper

I have had Santander fixed rate bonds for a few years now. They always gave additional bonus interest for loyalty etc, so the interest rate matched the best in the market. In previous years, taking money out within the bond year just lost interest as a penalty.

This year, 2 bonds that I have rolled into bonds where I get a measly 0,5% whereas new customers get 1%. Also, I am looking to buy a house this year, so need the cash for a deposit. However, the bond small print suggests that unless I am critically ill or in financial difficulties, I cannot get to my money. It's trapped in for nearly another year.

I feel like my money is trapped in a low interest situation whereby I am not being rewarded for customer loyalty, and also unable to access my money, for minimal benefit.

Can anyone advise please? Thanks a lot.

xylophone

You say that they rolled over - were you given no choice as to what happened at maturity?

Surely you didn't choose a fixed rate of 0.5%?

enthusiasticsaver

The Santander bonds allow no withdrawals or deposits so if you chose to roll it over then you are stuck. Have you checked the terms and conditions of your rolled over investment as it seems you have been stung with an awful rate and locked in as well? I would be complaining to Santander and saying you need it back for a house purchase - ie financial difficulty. That is an atrocious deal!


You really should not have allowed it to roll over at that rate though.

Ifts

If you agreed to roll over at this low rate then I don't think there is much you can do. Unless it was rolled over recently then there may be a cooling off period that may allow you to get your money back early.

You really do have to keep an eye on the maturity date of any fixed term bonds you have (you usually receive a request for maturity instructions 2-4 weeks before its due to mature) so they don't get rolled over again at a poor rate without access.

It's not just Santander that roll over fixed term bonds when they mature, other financial intuitions do so to:
http://www.fca.org.uk/static/documents/thematic-reviews/tr13-04.pdf

badger09

CastleKeeper wrote: »

I have had Santander fixed rate bonds for a few years now. They always gave additional bonus interest for loyalty etc, so the interest rate matched the best in the market. In previous years, taking money out within the bond year just lost interest as a penalty.

This year, 2 bonds that I have rolled into bonds where I get a measly 0,5% whereas new customers get 1%. Also, I am looking to buy a house this year, so need the cash for a deposit. However, the bond small print suggests that unless I am critically ill or in financial difficulties, I cannot get to my money. It's trapped in for nearly another year.

I feel like my money is trapped in a low interest situation whereby I am not being rewarded for customer loyalty, and also unable to access my money, for minimal benefit.

Can anyone advise please? Thanks a lot.

Are you sure the bonds have rolled over into a fixed term bond?:cool:

From Santander's website:
'When the term ends (at maturity) the money will be transferred into an account which allows you access to your money in branch and over the phone, unless before the end of the term you tell us otherwise. We will write to you to confirm product details and rates at least 14 days before your bond matures.'