The Top Easy Access Savings Discussion Area

london21

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

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

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

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

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

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

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

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. 

S_uk

Rollinghome said:

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.

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.

Isn't that example for for when the interest pays yearly not monthly though?

To work out the estimated balance, we’ve assumed that:

-We pay interest yearly back into the account.

chris_the_bee

dealyboy said:

Sorry ... just thought of a downer re. new Santander EA saver ... tax on savings interest ... eek!

Hope you're OK @Swipe.

It's a privilege to pay taxes.