Santander ISAs - 1 year or 18 month term - what have you chosen? Plus funding?

GlasgowExpat2

eskbanker said:

Answered in product summary box under 'deposits':

The ISA allowance for the 2022/23 tax year is £20,000 and deposits can be made up to and including 5 April 2023. The ISA allowance for the 2023/24 tax year is £20,000 and deposits can be made from 6 April 2023 up to and including 30 April 2023. No further deposits will be allowed.

Thanks. It was the “no further deposits allowed” that confused me 

howryoo

refluxer said:

howryoo said:

Wonder if they'll have loyalty ISA rates at those times seeing there's an exodus of maturing accounts? 

I haven't had an ISA with Santander long enough to know whether they offer special rates on maturity or not, but I don't remember seeing this mentioned on the forum. This is pretty rare though I think - not many providers do this, at least in my experience.

howryoo said:

If I went with 12 months at 4.15%, what would interest have to be to get back to same position if I went with 18 months at 4.25% from the outset?  4.44%?

Yes, that's about right so it obviously all depends on where you think rates will be in a year's time.

One thing to bear in mind is that, because interest is added annually, if you go for an 18 month fix then the actual return will be higher than the quoted 4.25% AER due to compounding. For example - if you put £20k into the 18 month ISA then you'd be starting that last 6 month period with £20k + 4.25%, so around £20,850.

As I'm considering the 18 month ISA myself, I've just done a few quick calculations (using this simple interest calculator) and I think the overall return would be around 6.46% over that 18 month period, so divided by 1.5 (years) = 4.31% for comparison purposes... or 4.47% if you transferred £20k, got the £50 eVoucher, considered it as cash and added it to the total interest earned in the same calculation

Thanks - glad I was on the right track.

My thinking was if I committed to 4.15%, I'd need an account to offer ~4.45% in 12 months time.

howryoo

3card said:

My wife has just signed up for a Santander fixed ISA for the 18 months. 
The 4.25% was suited to her for the 18 month account but we will be keeping an eye on things

The transfer in from what i saw stated that the transfer in needs to be done within 14 days of opening the account and thats what we are also looking at

Have you requested a transfer in?  If so, did you get an email confirmation?

Oasis1

So just to confirm, I can open a fixed ISA with Santander now to lock in the rate and then choose to deposit £20k from 6 April, if I decide it's the best option, as long as its within 14 days of opening? Or does it have to be a transfer in from another ISA?

Also could you request a transfer in from another ISA before 5 April, and then top it up by another 20k deposit from 6 April as long as its before 30 April cut off?

eskbanker

Oasis1 said:

So just to confirm, I can open a fixed ISA with Santander now to lock in the rate and then choose to deposit £20k from 6 April, if I decide it's the best option, as long as its within 14 days of opening? Or does it have to be a transfer in from another ISA?

Any transfers need to be initiated within 14 days, but if you're not transferring then you need to deposit an opening balance of £500, and then the window for subsequent deposits runs until 30 April, as per their published information about deposits pasted on the first page of this thread yesterday afternoon....

homerhotspur

eskbanker said:

Oasis1 said:

So just to confirm, I can open a fixed ISA with Santander now to lock in the rate and then choose to deposit £20k from 6 April, if I decide it's the best option, as long as its within 14 days of opening? Or does it have to be a transfer in from another ISA?

Any transfers need to be initiated within 14 days, but if you're not transferring then you need to deposit an opening balance of £500, and then the window for subsequent deposits runs until 30 April, as per their published information about deposits pasted on the first page of this thread yesterday afternoon....

So, does this condition mean that you can't open one of these accounts ready for the 23/24 year, IF you have already used your full 22/23 allowance ?

eskbanker

homerhotspur said:

eskbanker said:

Oasis1 said:

So just to confirm, I can open a fixed ISA with Santander now to lock in the rate and then choose to deposit £20k from 6 April, if I decide it's the best option, as long as its within 14 days of opening? Or does it have to be a transfer in from another ISA?

Any transfers need to be initiated within 14 days, but if you're not transferring then you need to deposit an opening balance of £500, and then the window for subsequent deposits runs until 30 April, as per their published information about deposits pasted on the first page of this thread yesterday afternoon....

So, does this condition mean that you can't open one of these accounts ready for the 23/24 year, IF you have already used your full 22/23 allowance ?

If you've used your full 22/23 allowance then you can't make a minimum opening deposit of £500 until on or after Thursday, but there doesn't appear to be anything specified about how long you have to deposit that minimum opening balance or what happens if you don't do it.  Without actually going through the application process it's difficult to say - as above, there's no minimum opening balance needed if transferring, but it does seem possible that at account opening you'd need to either deposit or request a transfer there and then....

homerhotspur

eskbanker said:

homerhotspur said:

eskbanker said:

Oasis1 said:

So just to confirm, I can open a fixed ISA with Santander now to lock in the rate and then choose to deposit £20k from 6 April, if I decide it's the best option, as long as its within 14 days of opening? Or does it have to be a transfer in from another ISA?

Any transfers need to be initiated within 14 days, but if you're not transferring then you need to deposit an opening balance of £500, and then the window for subsequent deposits runs until 30 April, as per their published information about deposits pasted on the first page of this thread yesterday afternoon....

So, does this condition mean that you can't open one of these accounts ready for the 23/24 year, IF you have already used your full 22/23 allowance ?

If you've used your full 22/23 allowance then you can't make a minimum opening deposit of £500 until on or after Thursday, but there doesn't appear to be anything specified about how long you have to deposit that minimum opening balance or what happens if you don't do it.  Without actually going through the application process it's difficult to say - as above, there's no minimum opening balance needed if transferring, but it does seem possible that at account opening you'd need to either deposit or request a transfer there and then....

Yes, thanks, that was my reading of it. I don't think its worth the potential hassle to me .I'll just wait and hope for similar rates etc from 6 April. I did start the online application but was quickly faced with the ISA declaration for 22/23 when I wanted it to be for 23/24.  At first, I thought it would be ok but the terms and conditions on this matter are somewhat vague and, even if I could speak with an actual adviser, I don't think I would totally trust them to get it right.

TiVo_Lad

eskbanker said:

If you've used your full 22/23 allowance then you can't make a minimum opening deposit of £500 until on or after Thursday, but there doesn't appear to be anything specified about how long you have to deposit that minimum opening balance or what happens if you don't do it.  Without actually going through the application process it's difficult to say - as above, there's no minimum opening balance needed if transferring, but it does seem possible that at account opening you'd need to either deposit or request a transfer there and then....

I opened the 1 year account and neither deposited nor transferred during the application process since I wanted to register for online banking first. It seems as long as I either get the transfer request in before the 14 days are up, or get some new cash in before 30th April (after 5th April since I'm maxed out for this tax year) it looks like everything will work okay.

myname15

If you applied for this with the intention of transferring in funds, then intend to fund the account with your 2023-24 allowance after 6th April (but before 30th April), how would you answer this?

How are you saving for this account?

- I will transfer money from an account in my name

- I will not be depositing new savings

- Other

Option 1 seems to expand with fields to populate with your Santander account.

Option 2 and 3 does nothing.