santander esaver 3.20%

inkydolphin

wiseonesomeofthetime said:

Not really. For many of us the 12 months anniversary is fast approaching so account has been emptied already, I guess.

Why do they have different editions of savings accounts with limited terms? Genuinely interested in the reasons banks do this. I can understand it for fixed interest accounts but not variable. The cynical reason would be to "trick" people into moving to a low interest account without noticing for a few months. Is it to do with being able to "launch" each new edition with a fanfare? 

I know someone will have an explanation that makes me say "Ah yes of course, makes perfect sense now you mention it"...

Section62

inkydolphin said:

Is it to do with being able to "launch" each new edition with a fanfare? 

A bit of that, but it also means they can offer a special rate or reward loyalty, whilst containing the total amount it will cost them.

As an example, Coventry BS have recently had a policy where the on-sale issue of their Limited Access saver had a slightly lower interest rate than previous issues... after an issue went off-sale the interest rate would eventually go up to match other previous issues.  Doing it that way means Coventry could give existing customers a better rate whilst avoiding a deluge of new customers applying for the on-sale product.

Qyburn

Which account was the original post discussing? The account which hit the headlines here in the Autumn was "eSaver Limited Edition (Issue 1)" staring off at 2.75% and increasing to 3.25% then 3.75%. It's never been 3.20%, or at least neither of ours have.

wiseonesomeofthetime

Qyburn said:

Which account was the original post discussing? The account which hit the headlines here in the Autumn was "eSaver Limited Edition (Issue 1)" staring off at 2.75% and increasing to 3.25% then 3.75%. It's never been 3.20%, or at least neither of ours have.

I suspect that 3.20% is the same account but with monthly interest option, instead of annual.

refluxer

Qyburn said:

Which account was the original post discussing? The account which hit the headlines here in the Autumn was "eSaver Limited Edition (Issue 1)" staring off at 2.75% and increasing to 3.25% then 3.75%. It's never been 3.20%, or at least neither of ours have.

3.20% was the gross monthly interest figure for the 3.25% AER Issue 1 account.

Qyburn

That makes sense. I was thinking it might be a completely different account, in which case the rise to 3.75% might not apply.

Regarding banks creating new "issues" that's always been the case right back to the days when you had to go into a branch with your passbook. My take was and is that it let them advertise a nice high interest rate to attract customers, without necessarily having to pay that rate to their existing savers.

MACKEM99

I was Spain recently and used Santander card to get cash out which was very easy and received bank rate with no charges.

😀

artyboy

Too little, too late. Bye bye Santander

inkydolphin

Section62 said:

inkydolphin said:

Is it to do with being able to "launch" each new edition with a fanfare? 

A bit of that, but it also means they can offer a special rate or reward loyalty, whilst containing the total amount it will cost them.

As an example, Coventry BS have recently had a policy where the on-sale issue of their Limited Access saver had a slightly lower interest rate than previous issues... after an issue went off-sale the interest rate would eventually go up to match other previous issues.  Doing it that way means Coventry could give existing customers a better rate whilst avoiding a deluge of new customers applying for the on-sale product.

Ah yes of course, makes perfect sense now you mention it!

Doctor_Who

I've had an email this morning from Santander saying:

We’ll be extending the term of the interest rate on your eSaver Limited Edition (Issue 1) from 12 to 20 months. We'll contact you with more details of when this rate ends closer to your new maturity date.