Santander Easy Access Saver - What to do with it?

wiseonesomeofthetime

To my Cahoot at 5.20% or my Beehive at 5.20%

Both options still available to me, though Cahoot one has £3k limit.

Beddie

I'll be closing mine, see no point keeping it.

Brie

I'll be leaving mine as it's a hassle to change these too frequently that I would prefer to avoid.  If it was just me I might go for something else but OH has this idea that both our names should be on accounts (just in case) and that opens a whole bucket of worms as far as I'm concerned.  

Sea_Shell

Ours is joint too, and our CA is also with them, so could benefit in keeping a small emergency balance in it, as we usually run the CA to almost empty.

£100 or so.

I've no idea exactly how much interest we'll get in September (or in May if closed)...as I haven't been keeping that close an eye on the day on day balances, but we've had anything between £13k and £4k during that time.

Should've had a spreadsheet 😉

soulsaver

soulsaver said:

It will still pay 4.20% after may 20th, so interest is compounding but at a lower rate than you can get elsewhere, at least for the moment.

Note the account itself is NLA, so the 4.20 is only available to existing holders - so you can't close to get the interest and then reopen. 

I used it to fund my Sant savings hub - so funds have been going in and out - but my spreadsheet records my estimated interest accrued at £1100 to date.

So 3.3 months to 'maturity' at start of Sept from May 20th at 1% below the top EA rate ATM ... a potential 'loss' of
c.£3.00 to leave it open to 'maturity'. 

Omitted to add it'll be empty May anyway for me. I have a few other 5.20% EA options, assuming they don't disappear in the mean time.

Bazzalona13295

Sea_Shell said:

I'd read on another thread, that their new app doesn't support cheque pay in!!

I haven't been moved to it yet, so don't know for sure.

I wrote that - quite surprised when I found out.

Bazzalona13295

I have the Skipton account at 5.5% so I will transfer funds into there, I will probably keep it open just in case I need to make small transfers - won't hurt to leave the odd £50 or £100 in at times.

35har1old

sausage_time said:

I plan to close and move the balance plus interest to Chase Saver (at 5.1% with the 1% bonus I was opportunely able to obtain). 

Chase is now a tracker account so the interest can change faster

ToastLady

I'm going to keep the account open with minimal funding, just will be handy for future accounts and transfers.

allegro120

Sea_Shell said:

What are peoples plans once the rate drops on this account on 20th May.

Move the money out, obviously 

But what of the account itself, especially if you opted for annual interest (Like i did)

Will you leave a £ in and then just wait for the interest to be credited, at the anniversary (Sept for me), in the (vain) hope that the rate may increase again in the future.

All in same tax year, so no consideration needed on that score.

Or ask for it to be closed, so interest is credited to date, and take a chance on any new products in the future?

This way you can keep the compounding going, at whatever better rate you find elsewhere.  

Thoughts?      Closure seems to be the best option, but have I missed anything?

I'm not in this position because I chose monthly interest.  But if I was I would close the account.  It is unlikely that 4.2% will become a competitive rate before September and after that it will turn into Everyday Saver and will become totally useless anyway. However, it is still three weeks to go until the reduction and the overall picture will be a little bit clearer at the time.