Santander Fixed Rate ISA - interest payment issues

Wonka_2

I’ve a couple of Santander fixed rate ISA’s with weird interest payments (and Santander live chat isn’t helping)

Account 1 - £20k deposited 30/09/25 with interest of £2.14 paid on 02/10/25

Account 2 - £20k deposited 09/04/2026 with interest of £50.03 paid on 02/05/26

Anyone any plausible reasons why or do I have to wait to talk to someone on the phones ?

intalex

By my calcs, one possibility looks like

Account 1: 1 day's interest @ around 3.90% gross

Account 2: 22 days' interest @ around 4.15% gross

So all monthly gross interest credits up to the end of the month

molerat

What are you actually querying ? Many Santander accounts pay interest on a set annual date and on maturity.

Wonka_2

https://forums.moneysavingexpert.com/discussion/comment/82081014#Comment_82081014

I’m querying why the apparent random payments so soon after opening.

The explanation from @intalex fits in terms of numbers so I’ll just accept the randomness of the payment dates

molerat

https://forums.moneysavingexpert.com/discussion/comment/82081052#Comment_82081052

The dates won't be "random", if you read the key facts document it states "We'll pay interest into the account once a year and at the end of term". That annual date is generally the beginning of the 12 month term of the ISA - it will be a set maturity date rather than a set period from opening - paying interest for the "pre-funded" period, if you are late to the party you won't get that early interest payment.

MarkFromCornwall

https://forums.moneysavingexpert.com/discussion/comment/82081052#Comment_82081052

It’s not just you. I got a small interest payment on 2nd May for a Santander FR ISA opened in April. It’s strange, but not a problem.

friolento

https://forums.moneysavingexpert.com/discussion/comment/82081294#Comment_82081294

similare here - my FRISA started 24 April and they paid interest on May 2. As you say, strange but not a problem

molerat

What is strange about interest being paid on dates in accordance with the account terms and conditions ?

friolento

https://forums.moneysavingexpert.com/discussion/comment/82081424#Comment_82081424

which term would you suggest states that they pay interest on May 2?

molerat

Not directly in the T&Cs but in the Key Facts, "We'll pay interest into the account once a year and at the end of term". The current ISA issue has a maturity date of August 1st so interest is paid on that date each year for all the 1 to 5 year terms. The availability of each issue starts up to one month before the start of term and interest is paid on that date each year even if the account has only been open matter of days.

Altior

The current fixed rate ISAs state:

We work out the interest we’ll pay on your account each day.
We’ll pay interest into the account once a year and at the end of the term. It will be available to
you the next day.

I suppose slight unusual, fixed until the 1st of the month (inclusive). In that case, the next day is the 2nd. I guess each month definitely has a 1st!