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Santander Easy Access Limited Edition

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  • coey
    coey Posts: 34 Forumite
    Sixth Anniversary 10 Posts Name Dropper
    baser999 said:
    friolento said:
    coey said:
    So much for the "12 month term" then......another one to keep an eye on is the edge saver account , the 7% interest reduces to zero for anything above the 7K max so make sure you transfer any interest out of the account sharpish , ps you can't have the interest paid to a different account but you can sign up for notification of when balance exceeds 7K.

    I thought the limit for interest on the Edge Save is £4,000?
    So did I. I make a point of transferring the monthly interest out to keep the balance at £4k
    baser999 said:
    friolento said:
    coey said:
    So much for the "12 month term" then......another one to keep an eye on is the edge saver account , the 7% interest reduces to zero for anything above the 7K max so make sure you transfer any interest out of the account sharpish , ps you can't have the interest paid to a different account but you can sign up for notification of when balance exceeds 7K.

    I thought the limit for interest on the Edge Save is £4,000?
    So did I. I make a point of transferring the monthly interest out to keep the balance at £4k
    sorry , now corrected
  • BooJewels
    BooJewels Posts: 3,006 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    coey said:
    So much for the "12 month term"  [snip]
    It was quite clear in the information on this product that it was a variable interest rate (it says variable in brackets everywhere the interest rate appears) - the account is only held for a year - but the interest rate was always potentially subject to change.  Have a look at the important documents you downloaded when you opened the account - and agreed to having read.  A key factor for me was that the terms stipulated that they had to give 60 days notice of reductions, which is the best I've encountered - most are 14 or 21 days.  As we signed up in September, we've all got around 8 months at the higher rate.
  • My Santander EA Saver Interest is dropping by 1%  from 5.08% as from May
    So it looks like the race is on to shift cash savings to avoid losing out on the coming interest rate cuts coming soon 

    Anyone got any ideas on the banks or building societies which are more likely to be last to drop their interest rate 
  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 11 March 2024 at 12:09PM
    Rates aren't just determined by BOE base rate. Despite the fanatical coverage it receives. Lenders set their deposit / savings rates according to their own demands for cash. 

    Any account which offers a rate above base rate (or is similar too) is worth locking into. 
  • 35har1old
    35har1old Posts: 1,927 Forumite
    1,000 Posts Second Anniversary Name Dropper
    edited 11 March 2024 at 12:09PM
    Rates aren't just determined by BOE base rate. Despite the fanatical coverage it receives. Lenders set their deposit / savings rates according to their own demands for cash. 

    Any account which offers a rate above base rate (or is similar too) is worth locking into. 
    Others could also decrease rates and I wouldn't close the account just reduce to minimum requirement 
    You are not going to get a easy access account that you can hold a large sum in that pays above base rate.
    Currently a 1yr fix 5.28 min dep £10000
    The current best easy excess with Virgin 5.11% but restricted to 3 withdrawals before rate is reduced
    Cynergy may be a better bet 5.1% but only for a year





  • BooJewels
    BooJewels Posts: 3,006 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    The only people mentioning the relationship to the base rate are posters here - Santander, in the letter, say it's 'because of expected changes in the interest rates we receive'.
  • WillPS
    WillPS Posts: 5,160 Forumite
    Part of the Furniture 1,000 Posts Newshound! Name Dropper
    edited 11 March 2024 at 1:04AM
    BooJewels said:
    The only people mentioning the relationship to the base rate are posters here - Santander, in the letter, say it's 'because of expected changes in the interest rates we receive'.
    Which could well be from the Bank of England. And if it isn't, and 'the interest they receive' is less than what they could get from the Bank of England, they could deposit the funds there instead, then track the base rate.
  • BooJewels
    BooJewels Posts: 3,006 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    WillPS said:
    BooJewels said:
    The only people mentioning the relationship to the base rate are posters here - Santander, in the letter, say it's 'because of expected changes in the interest rates we receive'.
    Which could well be from the Bank of England. And if it isn't, and 'the interest they receive' is less than what they could get from the Bank of England, they could deposit the funds there instead, then track the base rate.
    I thought it was more to do with their recently announced cuts in mortgage rates and that most new mortgages will now be around 4%.  Maybe my view of this is simplistic, but I was under the impression that lenders needed a good differential rate between what they charge borrowers and what they reward savers, in order to make money (I know there's more to it than that) - and a good balance between how much money is involved on each side of that equation.  After recent high mortgage rates, maybe they've not sold as many new mortgages as they'd need to support our deposits at 5.2%.  
  • callum9999
    callum9999 Posts: 4,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 11 March 2024 at 5:43AM
    WillPS said:
    I think putting the interest down a whole % point on limited issue, 12 month fixed term, account is a bad look for Santander, especially since the base rate hasn't shifted at all since it was launched and when it does it's highly unlikely to come down by anything like as much.

    I accept totally it's their right to do this but I'm not full of gratitude that they've done it, extra notice or otherwise.
    Why do you think the base rate is relevant?

    Santander evidently don't need as much money as they're currently paying out 5.2% interest on so are reducing it - the base rate could be 100% and it wouldn't make a difference (aside from the economy crash obviously!) - if they don't need it, they don't need it. You'd presumably do the same in reverse (i.e. you're paying out interest on an overdraft while you have excessive amounts of money in your savings account)?

    Your suggestion that they just put the excess in a BOE account and pass on the interest doesn't seem particularly logical when they're likely going to drop below 5.2% in the near future.
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