Santander fixed rate ISA

ajbrunster

Can someone explain how investing £20.000 into a Santander ISA that after one year it’s made £33.53 in interest, Santander recommended this ISA and it’s done nothing. Have a chosen the wrong ISA?

Dazed_and_C0nfused

ajbrunster said:

Can someone explain how investing £20.000 into a Santander ISA that after one year it’s made £33.53 in interest, Santander recommended this ISA and it’s done nothing. Have a chosen the wrong ISA?

You don't usually "invest" in a fixed rate ISA, they are usually a cash ISA (savings not investments).

When did you add the £20,000 and what interest rate did you sign up for?

refluxer

Santander's 1 year fixed rate cash ISAs were paying over 5% this time last year, so you should be looking at over £1000 in interest on a one year fix that matures around now. 

Has yours actually matured yet ? If not (or it's matured today), bear in mind that they don't add the final interest payment until the day after maturity.

Have you checked to see when the £33.53 interest payment was actually credited ? They tend to make a small, interim interest payment near the start of the fix, so it's possible that it was credited a year ago. This can happen when their fixed rate cash ISAs have a fixed maturity date (eg, 1st October) so if you fund the account a week or two before that date (eg. mid-September), they'll credit the account with the appropriate amount of interest for the time leading up to 1st Oct (so that the final payment is for exactly 1 year).

Ayr_Rage

Was the ISA recommended during a meeting with a Santander financial adviser?

What was the rate and term?

ajbrunster

Thanks for the info, money put in 20/10/23, interest paid 02/11/23 at 5.10% not sure of the term without finding the paperwork, yes advised by bank during appointment. 

Dazed_and_C0nfused

ajbrunster said:

Thanks for the info, money put in 20/10/23, interest paid 02/11/23 at 5.10% not sure of the term without finding the paperwork, yes advised by bank during appointment. 

Not sure if you are being serious with your original post but given the interest paid was for just 12 days £33 looks fine to me.

Your next interest payment may well be due in 10 days from now and will be more like £1k.

refluxer

ajbrunster said:

Thanks for the info, money put in 20/10/23, interest paid 02/11/23 at 5.10% not sure of the term without finding the paperwork, yes advised by bank during appointment. 

So that was the interim interest payment, as I suspected. You'll get the full 1 year payment the day after the maturity/account anniversary date.

ajbrunster

Thankyou for the responses, much appreciated. I’ll update this in a week or two 👍

ajbrunster

A quick update on the interest, over a thousand pounds was added to the account on the same date as the initial interest payment. Thanks for the information 👍