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The Top Easy Access Savings Discussion Area

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Comments

  • dealyboy
    dealyboy Posts: 1,968 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    @Swipe said:
    The Santander easy access news has made my day. That's an extra £85 a month I'll be getting compared to their first incarnation
    ... trying to work out how much you've got ...  :s and remember what the original rate was ...  :* 500k ? am I close ?
  • dealyboy
    dealyboy Posts: 1,968 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Sorry ... just thought of a downer re. new Santander EA saver ... tax on savings interest ... eek!

    Hope you're OK @Swipe.
  • london21
    london21 Posts: 2,196 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    How many bank accounts will have to be opened, I have the Easy access saver limited edition 1 still paying 3.98% so opened Chip 4.84% and Tanden 5% and now Santander have easy access saver limited edition 3 paying 5.2%.

    Opening this will earn me £14.66 extra pm

    Why can't the banks offer the same new rate to existing customers.


  • fabsaver
    fabsaver Posts: 1,308 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 4 September 2023 at 12:31PM
    Have Santander made a mistake on the key facts document when reporting EAR?

    They are showing:
    If interest is paid annually 5.20% AER/gross (variable) for 12 months from account opening
    If interest is paid monthly 5.08% AER/gross (variable) for 12 months from account opening

    I would have expected the AER to be the same 5.20% for both options and the gross rate for monthly interest to be 5.08%. Are they really paying a lower AER if opting for monthly interest?

    https://www.santander.co.uk/assets/s3fs-public/AD_documents/easy_access_saver_limited_edition_issue_3_key_facts_document_save0665sep23hcd_limited_lr.pdf



  • S_uk
    S_uk Posts: 348 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Is there a reason why in the Key Facts for the monthly interest option (paid into the account) it says "5.08% AER/gross". Should it not be 5.20% AER/5.08% gross? I don't plan to withdraw any interest paid into the account.
  • jak22
    jak22 Posts: 407 Forumite
    Third Anniversary 100 Posts
    edited 4 September 2023 at 12:40PM
    An AER is a comparative figure and not used for the actual interest earned - which is one of the 2 gross rates.

    For the issue 1 that was exciting 11 months ago it only took 2 months for others to catch up and was never really competitive since although it might be a convenient account - it was 5 months before they increased the rate and only twice more since. The next BoE is in a couple of weeks which hopefully might lead others to approach this rate.
  • 1spiral
    1spiral Posts: 340 Forumite
    100 Posts Second Anniversary Name Dropper
    S_uk said:
    Is there a reason why in the Key Facts for the monthly interest option (paid into the account) it says "5.08% AER/gross". Should it not be 5.20% AER/5.08% gross? I don't plan to withdraw any interest paid into the account.

    Their savings account interest rates document seems to be correct.
  • london21
    london21 Posts: 2,196 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    The Santander saver account applied through online banking and account already created.

    It does say Interest rate: 5.08% I selected the monthly interest option. Seems to get 5.2% has to be annual interest rate or the monthly interest will also attract interest so maybe works out to 5.2%.
  • Rollinghome
    Rollinghome Posts: 2,740 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 4 September 2023 at 12:50PM
    KevinG said:
    pearl123 said:
    jpsman said:
    Small gripe but the Santander EA Saver doesn't seem to allow monthly interest to be paid away - or am I missing something?
    You can select the monthy interest option of 5.08%.
    That wasn't the question.
    I think pearl123's point was it's normally only fixed term accounts where monthly interest can be paid away.  This is an easy access account, so you can withdraw your interest whenever you want to.

    I notice the summary box says "5.08% AER/gross (variable)" but later says "Balance after 12 months £1,052.00".  Meaning that the AER for monthly with full compounding would be 5.20% as you'd expect, not 5.08%, the rate applied monthly.  You'd get a bit less than 5.20% AER if withdrawing or closing before 12 months.

  • PixelPound
    PixelPound Posts: 3,070 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    london21 said:
    The Santander saver account applied through online banking and account already created.

    It does say Interest rate: 5.08% I selected the monthly interest option. Seems to get 5.2% has to be annual interest rate or the monthly interest will also attract interest so maybe works out to 5.2%.
    I opened in app, all done in a few mins, no faff. 
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