Santander 1 year fixed rate ISA

diy1950

I see Santander are offering £50 eVoucher if you  transfer in at least £10000 from a non-Santander ISA. Am I right that the 4.31% interest rate on £10000 equates to 4.81% if you include the £50 voucher?

Also is it better to just transfer the £10000 (to get the voucher) rather than a larger sum as there are better rates than 4.31% available elsewhere. Might need to do a bit of juggling ISAs as you have to transfer the full amount in the ISA you are transferring. Thanks

refluxer

Yes, the voucher effectively adds 0.5% to the interest rate on £10,000 so makes it 4.81% for a 1 year fixed rate which would be better than anything currently available. The effect on £20,000 is less, as you say, but it still takes it to 4.55% which is on a par with the current best 1 year rates.

I've taken advantage of 2 of those eVoucher offers in the past. I choose Amazon vouchers on both occasions and had no issues with the scheme and redeeming the vouchers although you do need to keep an eye on your spam folder, just in case !

I guess one thing to bear in mind is that the £50 voucher is obviously outside of the ISA, whereas £50 of actual interest would be retained within the ISA (if desired).

If you do decide to take advantage of this offer, make sure you read the T&Cs carefully. I've not read the current offer, but the most important part of previous offers was that the transfer had to be a minimum of £10k and a full transfer, as you've spotted. There are also timing deadlines with respect to receiving the transfer requests (and possibly the actual funds). 

diy1950

Thanks refluxer for your very comprehensive reply. Much appreciated.

35har1old

refluxer said:

Yes, the voucher effectively adds 0.5% to the interest rate on £10,000 so makes it 4.81% for a 1 year fixed rate which would be better than anything currently available. The effect on £20,000 is less, as you say, but it still takes it to 4.55% which is on a par with the current best 1 year rates.

I've taken advantage of 2 of those eVoucher offers in the past. I choose Amazon vouchers on both occasions and had no issues with the scheme and redeeming the vouchers although you do need to keep an eye on your spam folder, just in case !

I guess one thing to bear in mind is that the £50 voucher is obviously outside of the ISA, whereas £50 of actual interest would be retained within the ISA (if desired).

If you do decide to take advantage of this offer, make sure you read the T&Cs carefully. I've not read the current offer, but the most important part of previous offers was that the transfer had to be a minimum of £10k and a full transfer, as you've spotted. There are also timing deadlines with respect to receiving the transfer requests (and possibly the actual funds). 

But you don't have to  wait a year to benefit