Santander Easy Access Savings account

acstewart

September 2023 I applied through this site for a Santender easy access savings account with a  rate of 5.2% fixed for 12 months, or so I thought, and I saw nothing to the contrary during the application process. I have now been informed by Santander the rate is dropping to 4.2% in May 2024. Santander tell me it is a variable rate account and that I was missed informed by MSE. Has anyone else encounted this.

Rheumatoid

acstewart said:

September 2023 I applied through this site for a Santender easy access savings account with a  rate of 5.2% fixed for 12 months, or so I thought, and I saw nothing to the contrary during the application process. I have now been informed by Santander the rate is dropping to 4.2% in May 2024. Santander tell me it is a variable rate account and that I was missed informed by MSE. Has anyone else encounted this.

It is subject to a lot of discussion here. It was never a fixed rate and was never advertised as such.

Bridlington1

The interest rate was never fixed and has always been variable. From the summary box:



The account pays 5.2% variable for 12 months. After 12 months it converts into an Everyday Saver 

friolento

acstewart said:

September 2023 I applied through this site for a Santender easy access savings account with a  rate of 5.2% fixed for 12 months, or so I thought, and I saw nothing to the contrary during the application process. I have now been informed by Santander the rate is dropping to 4.2% in May 2024. Santander tell me it is a variable rate account and that I was missed informed by MSE. Has anyone else encounted this.

You might have seen information about this account on MSE but you would have applied through Santander, not through MSE.

I reckon you are not the only one who fell victim to some clever/cheeky Marketing, as the account was advertised for 12 months. The interest rate was not fixed, however, so they are withing their rights to drop the rate. It's also highly unlikely that MSE said that it was a fixed rate.

mebu60

Variable rate, fixed term for product. 

And by the time it reduces it'll have been approx 8 months at the high rate, two-thirds of the product duration. 

If it had been a fixed rate for 12 months it would almost certainly not have been an easy access account. 

callum2010x

Perhaps a silly question related to the above, so forgive me. 
If I opted for annual interest when I opened the account in September at 5.2%, obviously now the interest rate has dropped.

When I get my interest, will it all be at 4.2% or will they do some clever maths and give me 5.2% on my balance up until the point it changes, then 4.2% interest on everything after that? 

Basically, am I better off moving at another account now that is say around 5% or will I give up some interest at 5.2%?

Bridlington1

callum2010x said:

Perhaps a silly question related to the above, so forgive me. 
If I opted for annual interest when I opened the account in September at 5.2%, obviously now the interest rate has dropped.

When I get my interest, will it all be at 4.2% or will they do some clever maths and give me 5.2% on my balance up until the point it changes, then 4.2% interest on everything after that? 

Basically, am I better off moving at another account now that is say around 5% or will I give up some interest at 5.2%?

Interest is calculated daily, and then paid annually. They will give you 5.2% on the balance up until the rate changes, then 4.2% from then onwards so you will be better off sticking with Santander until the rate change comes into effect and then moving your money to a better paying account..

ColdIron

callum2010x said:

Perhaps a silly question related to the above, so forgive me. 
If I opted for annual interest when I opened the account in September at 5.2%, obviously now the interest rate has dropped.

When I get my interest, will it all be at 4.2% or will they do some clever maths and give me 5.2% on my balance up until the point it changes, then 4.2% interest on everything after that? 

Basically, am I better off moving at another account now that is say around 5% or will I give up some interest at 5.2%?

The first 9 odd months (Sep - May) will be at 5.20% AER, the remainder will be at 4.20% AER

Move it to a better account as soon as the rate drops, 20/05/2024