Transfer Santander Edge monthly interest

cisko65

Three weeks ago I opened the Santander Edge Saving. I put £4000 so the interests gained montly will not get any interest.

I want to set a standing order to transfer them to another Santander account. I don't understand how to calculate the amount, as it says 6.00% AER / 5.84% gross but also variable: 

6.00% AER / 5.84% gross (variable) interest on balances up to £4,000 (includes 2.50% AER / 2.47% gross (variable) bonus rate.

Thanks.

danny13579

These (last column) are the monthly amounts you get in interest, assuming your balance never goes below £4,000 and the interest rate remains the same for the entire year.

Ayr_Rage

You get 64p/day interest.

£4000 x 0.0584 = £233.60/365 = £0.64

So a 31 day month = £19.84

However, as it varies from month to month you need to do a manual transfer to move the interest.

friolento

cisko65 said:

I want to set a standing order to transfer them to another Santander account. I don't understand how to calculate the amount, as it says 6.00% AER / 5.84% gross but also variable: 

Afraid, you cannot set up a standing order on an Edge Saver account

You need to skim off your interest once a month. Alternatively, you could deposit just £3,800 or thereabouts and let the interest accumulate.

danny13579

friolento said:

You need to skim off your interest once a month. Alternatively, you could deposit just £3,800 or thereabouts and let the interest accumulate.

£3773.59 would be the perfect amount to do this. 

Edit: The above figure is if you were opening your Edge Saver today. As your Edge Saver has been open for 3 weeks, the easiest thing to do would be to withdraw your interest for October/November (£19.84) the day you get it on your first month-iversary, and then reduce the balance in the Edge Saver to £3,792.34.

If you do this, with your compounded interest for the remainder of the year, you'll end up with exactly £4,000 in the account exactly one year after opening it. No need to move your interest payments every month.

cisko65

friolento said:

cisko65 said:

I want to set a standing order to transfer them to another Santander account. I don't understand how to calculate the amount, as it says 6.00% AER / 5.84% gross but also variable: 

Afraid, you cannot set up a standing order on an Edge Saver account

You need to skim off your interest once a month. Alternatively, you could deposit just £3,800 or thereabouts and let the interest accumulate.

Yes, I just realised standing orders between different account in the same bank are not possible. I've made a note in my diary to transfer monthly. Thanks.

grumpy_codger

cisko65 said:

friolento said:

cisko65 said:

I want to set a standing order to transfer them to another Santander account. I don't understand how to calculate the amount, as it says 6.00% AER / 5.84% gross but also variable: 

Afraid, you cannot set up a standing order on an Edge Saver account

You need to skim off your interest once a month. Alternatively, you could deposit just £3,800 or thereabouts and let the interest accumulate.

Yes, I just realised standing orders between different account in the same bank are not possible. 

Generally, they are possible if the receiving account has a sort code and a 10-digit number. A standing order from Santander current account to Santander Edge account is possible.The problem is that very few savings accounts have this option.

Bobblehat

grumpy_codger said:

cisko65 said:

friolento said:

cisko65 said:

I want to set a standing order to transfer them to another Santander account. I don't understand how to calculate the amount, as it says 6.00% AER / 5.84% gross but also variable: 

Afraid, you cannot set up a standing order on an Edge Saver account

You need to skim off your interest once a month. Alternatively, you could deposit just £3,800 or thereabouts and let the interest accumulate.

Yes, I just realised standing orders between different account in the same bank are not possible. 

Generally, they are possible if the receiving account has a sort code and a 10-digit number. A standing order from Santander current account to Santander Edge account is possible.The problem is that very few savings accounts have this option.

I agree, because I have "done it" to skim off the interest from my two Edge Savers. The "done it" bit was actually a suggestion from a Santander CS agent when I phoned to inquire if there was an automatic way to move the interest out of the saver. The agent said that, although there isn't a way a customer can set up the "standing order", the agent said they could do it for me if I was happy to have a "set" amount chosen for the SO (they didn't actually call it an SO).

I chose £20pm to be moved on the day the interest is paid and it has been working OK for a couple of months. I don't mind the fact that the balance will slowly drift down from £4,000, It'll mean a few pennies less interest overall and there is nothing to stop me manually dropping a quid in once in a blue moon to take it back up to £4,000.

People cleverer than me will no doubt work out some sort of average such that the "SO" amount will make the monthly balance oscillate above and below the £4,000 mark  ... I don't have the gall to ring up again and ask for my existing "SO's" to be adjusted by a few pence, just to gain a few pence in optimising the nicely working arrangement ...YMMV 

The only downside is that I can't see the so-called SO's in online banking .... but it is working nontheless!

surreysaver

I like to see and keep track of how much interest I'm earning, so I need to log on to do that anyway, so only another couple of clicks to move the money myself