Santander 2.75% Account

Freedommm

Thanks posters! Santander does NOT inform me as an existing customer of any new products ever. I only found out just now and it only took a few taps inside their app to apply for it! 

Heinzbean

I am already with Santander and was quite enthusiastic to open one of these savings accounts .So probably a few mouse-

clicks.Then i thought back to when NS and I were the last to lower their interest rates. And everyone was stampeding to put their cash with them. Then they reduced the rates.NS and I knew what they were doing , They knew that there would be nowhere to move cash to. So they would be fully cashed up.Unless they are just slow and incompetent. And did it by accident.

Should i open one of these VARIABLE accounts or Shouldn't I cant decide .

Sea_Shell

There is a risk that if one has moved money in from regular savers paying less than this account, but FIXED, that this account may reduce its rate, and then you can't put the money back in your RSs

Even more so, if those RS's have been closed!   

I think the risk is very small.   They'll close for new applicants shortly (defo by 1st Nov), but I doubt they would reduce the interest rate in the current climate....but....

I've hedged my bets, in that I haven't closed my RSs, but just reduced the SOs to them, so i'll still be able to move some money to them if Santander do something left field with this account.

InvesterJones

Does anyone know what time of day the account balance is assessed for interest? I can only find 'daily' in the documentation.

refluxer

InvesterJones said:

Does anyone know what time of day the account balance is assessed for interest? I can only find 'daily' in the documentation.

I don't ever remember seeing that level of detail mentioned in the T&Cs of any accounts that I've opened. Isn't it normally the highest or lowest balance during that day, depending on which they choose ? I know that it's the lowest balance for OakNorth which means any large deposits don't start earning interest until the following day.

Section62

Heinzbean said:

I am already with Santander and was quite enthusiastic to open one of these savings accounts .So probably a few mouse-

clicks.Then i thought back to when NS and I were the last to lower their interest rates. And everyone was stampeding to put their cash with them. Then they reduced the rates.NS and I knew what they were doing , They knew that there would be nowhere to move cash to. So they would be fully cashed up.Unless they are just slow and incompetent. And did it by accident.

Should i open one of these VARIABLE accounts or Shouldn't I cant decide .

Not sure I understand the BiB - there is always somewhere to move cash to when the rate paid on one account is significantly reduced.

If the stampeding is the event I'm thinking of (August 2020), it wasn't that NS&I were the last to lower their rates, they increased the rate on the Income Bond (to 1.16%), completely against trend.  When they reduced the rate to 0.01% (December? 2020) the money flowed back out again.  In my case mainly to a PO Online Saver which was paying 0.83%.

The takeaway from that event, if there is one, should be that when an +ve outlier (variable) interest rate is on offer then grab it ASAP, as you have no way of knowing how long you may be able to benefit from it.

You don't have to fund it with more than £1, and having somewhere to put savings at 2.75% just as an option alone is a decent return on the investment of time/energy into a few mouse clicks.

murmeltier

Anyone else who is an existing active customer still waiting to hear from Santander after applying more than 48 hours ago?

My wife applied on Weds, nothing apart from initial acknowledgement email (and no new account showing on online banking).
I applied yesterday evening, again nothing so far.

MX5huggy

murmeltier said:

Anyone else who is an existing active customer still waiting to hear from Santander after applying more than 48 hours ago?

My wife applied on Weds, nothing apart from initial acknowledgement email (and no new account showing on online banking).
I applied yesterday evening, again nothing so far.

Yes, well worse, Since Tuesday 18:00, and we’re “proper” existing customers, but then maybe they know 2 regular savers are about to be moved internally so it’s not going to bring anymore money in.

DannyCarey

Just opened one up, took seconds as I am already a customer, haven't read the detail just yet.

Are there any caveats to getting the 2.75%, do you have to add in a certain amount every month, or setup direct debits etc? Or can you just add money as you want?

refluxer

DannyCarey said:

Just opened one up, took seconds as I am already a customer, haven't read the detail just yet.

Are there any caveats to getting the 2.75%, do you have to add in a certain amount every month, or setup direct debits etc? Or can you just add money as you want?

Nope - no catches or hoops.