Santander 1.5% on £20,000

[Deleted User]

Edited post

badger09

DeletedUser wrote: »

Hi,
I was under the impression that £20,000 would earn £300/year, or £25/month. However, it appears it only earns £225/year or £18.78/month.
I had wondered if this was due to the £5 account fee, but i have checked, and this is deducted seperately.

Can anyone explain this?

The £5pm is deducted separately.

Where are you getting the £225 & £18.78 from?

[Deleted User]

Edited post

westv

DeletedUser wrote: »

Because £18.78 is listed as the interest payment on the account.

That's not for part of the month is it? When was the account opened?

Nick_C

Works out at about £24.83 for a full month, less the £5 fee

AER is 1.5%. Actual interest is 1.49%. If interest is left to be compounded its 1.5%,but you can't get compound interest on a £20k balance.

caveman38

Although I have since closed all my 3 San123 accounts (Myself, wife & joint) I can confirm that the last two interest payments were around £25 each time ( £24.45 & £25.30)
I realised that with the £5 fee each month, the total interest was a mere 1.2% and that's before any tax due at years end.
The only (in my opinion) benefit was Instant Access. That is unless you use it for cashback.

eskbanker

Were there two active direct debits on the account throughout the monthly period in question?

JustAnotherSaver

Send a secure message to Santander to ask them to explain?

caveman38

DeletedUser wrote: »

Hi,
I was under the impression that £20,000 would earn £300/year, or £25/month. However, it appears it only earns £225/year or £18.78/month.
I had wondered if this was due to the £5 account fee, but i have checked, and this is deducted seperately.

Can anyone explain this?

Has this been the figure for a number of months or is this the first month and has it been a complete one?

[Deleted User]

Edited post

Nick_C

Well thanks for your feedback on what are intended as helpful comments OP!