Santander Edge Saver (7.00% AER/6.78% gross for 12 months)

DJSINGH

With the account, it says no interest will be paid on balances over 4k. So do you withdraw the interest immediately? Or is that even if you have over 4k, interest will still be paid on the £1-£4000?

ColdIron

FIREmenow said:

ColdIron said:

You don't need the Edge Up current account, you need the Edge current account. It comes with a £3 monthly fee but if you don't pay the £500 per month or don't set up the direct debits it won't be charged, though you might find the cashback pays for itself

Does this have to be the case from opening the account?  Or if you opened it and paid in and set up 2 DDs (which are required for the newly announced switcher deal) and then cancelled the DDs and stopped paying in money, would the account fee then stop?

I've never tried but I'm 99% sure that once you qualify the £3 will be taken even if you cease to qualify for any subsequent month(s). If the switch bonus requires that you qualify it may scupper your plans, unless you want the cashback which is still a decent deal

Thinking of switching and once the switch cashback has been paid, just keep it open for the 7% savings account.  Don't want to use it as main account for bills or spending so the cashback isn't of interest.

I have the 123 Lite so I just opened the Edge account purely for the 7% saver. My 123 Lite isn't for 'main banking' (whatever that is these days), I just use it for utility cashback

Edit: DYOR but I think if you just want the switch bonus and not the Edge Saver you could switch into the Everyday account and cancel the DDs and pay in once you receive the £185

ColdIron

DJSINGH said:

With the account, it says no interest will be paid on balances over 4k. So do you withdraw the interest immediately? Or is that even if you have over 4k, interest will still be paid on the £1-£4000?

Yes I move the interest as it would not get any interest, though the rest would

The interest is tiered. You get 7.00% AER on the £1 to £4,000 and 0% on the £4,001 plus

where_are_we

DJSINGH -  Set up an alert for when the account goes over £4000. It is a monthly payment of interest at roughly the same time each month depending on when you opened the account and deposited money.

FIREmenow

Thanks @ColdIron will still go for it. With cashback from Topcashback and the switch reward is worth it for however long the 7% lasts.

kyorin

ColdIron said:

DJSINGH said:

With the account, it says no interest will be paid on balances over 4k. So do you withdraw the interest immediately? Or is that even if you have over 4k, interest will still be paid on the £1-£4000?

Yes I move the interest as it would not get any interest, though the rest would

The interest is tiered. You get 7.00% AER on the £1 to £4,000 and 0% on the £4,001 plus

I'm not sure this is correct, having had the account for a few months now, I can tell you that I get more paid in interest each month. I can only conclude that there is small amount of interest interest paid on the portion above £4000 otherwise I'd get the same amount every month. This month's interest is 65p more than last months... A tiny amount of course, but still, every little helps.

ColdIron

Not according to Santander

Different months have different number of days and will affect your account month (or monthiversary)

https://www.santander.co.uk/personal/savings-and-investments/savings/santander-edge-saver

Sue_S

kyorin said:

ColdIron said:

DJSINGH said:

With the account, it says no interest will be paid on balances over 4k. So do you withdraw the interest immediately? Or is that even if you have over 4k, interest will still be paid on the £1-£4000?

Yes I move the interest as it would not get any interest, though the rest would

The interest is tiered. You get 7.00% AER on the £1 to £4,000 and 0% on the £4,001 plus

I'm not sure this is correct, having had the account for a few months now, I can tell you that I get more paid in interest each month. I can only conclude that there is small amount of interest interest paid on the portion above £4000 otherwise I'd get the same amount every month. This month's interest is 65p more than last months... A tiny amount of course, but still, every little helps.

This is probably because of the difference in the number of days in the month

ToastLady

Spot on ColdIron. 30 day month interest is £22.23, 31 day £22.97 on old 7% rate. I have a monthly notification to remind me to remove interest to an easy access account.

solidpro

Doing the sums, I have a Santander current account that pays 2% on 20K @ £4 a month fee, so that's £352 p/a

I was thinking of switching it to this edge so I could get the saver but then I could only get interest on £4k less the £3 a month fee for the edge account so that would be £244.

If I could find anywhere easier to stash the £16k higher than 2% I would but I have savings accounts coming out of my ears already including Skipton, Virgin Money, halifax, etc.