Santander Easy Access Saver - What to do with it?

Sea_Shell

I'd forgotten that it reverts after a year.

Stargunner

Bazzalona13295 said:

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.

I am surprised that you have not already transferred your funds from Santander to Skipton?

gt94sss2

poseidon1 said:

I will be keeping it open with around a nominal £100 to ensure I can easily access the year end tax certificate for 2023/24 for self assessment  tax return purposes.  

I always retain small balances for this purpose, since it can be a real inconvenience trying to recreate all the monthly interest receipts for my tax return from the different saving institutions I utilise each year ( 9 such accounts last tax year all paying monthly!). 

Santander are quite good in that they issue a online statement showing your consolidated taxable interest per account and in total for all your accounts after the tax year has ended.

This includes accounts closed during the tax year in question, so no need to keep your account open

where_are_we

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'. 

Obviously you empty your account on May 20 and move the funds to a better than 4.2% easy access account.

I have opted for annual interest paid in September. I then have 2 options.

(1) Leave the account with £1 in it from May 20 and withdraw the interest when it is paid in September.

(2) Close the account on May 20 and put the interest up to that point in my alternative easy access account - lets say it pays 5.2% until September

To be clear - In September will I be better off having taken option (2) rather than option (1) ?

gravel_2

Thinking about full premium bond subscription and the leftover either to my existing Chip EA (4.84%) or open something new closer to 5%

ColdIron

where_are_we said:

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'.

To be clear - In September will I be better off having taken option (2) rather than option (1) ?

Yes because your interest will be earning interest elsewhere. £1 will earn maybe 1 penny interest but the interest accrued to 20/05 will earn no interest

surreysaver

I opened an Edge and filled that up. Rest I put in an ISA.
I was only using it as my float to store money in when I got paid/for maturing regular savers and it typically emptied at the beginning of each month with money funding regular savers anyway 

2010

From recent experience;
Transfer all the money except for £1 and then request it to be closed.
They usually do it by cheque within 8 working days.

mebu60

I have some headroom in three accounts currently paying 5.1% but will see how the land lies on 20th. The bulk of the funds in the saver will be leaving Santander.

Santander has my main current account so I will retain the saver until it reverts on the 1 year anniversary and keep a modest float in there rather than the two current accounts and transfer cash shortly before it is required. 

myth123

Will be moving my remaining funds to Cahoot and then Barclays Rainy Day.