Santander 1.5% on £20,000

[Deleted User]
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edited 29 November 2017 at 3:02PM in Savings & investments
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  • badger09
    badger09 Posts: 11,205 Forumite
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    DeletedUser wrote: »
    Hi,
    I was under the impression that £20,000 would earn £300/year, or £25/month. However, it appears it only earns £225/year or £18.78/month.
    I had wondered if this was due to the £5 account fee, but i have checked, and this is deducted seperately.

    Can anyone explain this?


    The £5pm is deducted separately.

    Where are you getting the £225 & £18.78 from?
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    edited 29 November 2017 at 3:02PM
    Edited post
  • westv
    westv Posts: 6,084 Forumite
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    DeletedUser wrote: »
    Because £18.78 is listed as the interest payment on the account.

    That's not for part of the month is it? When was the account opened?
  • Nick_C
    Nick_C Posts: 7,458 Forumite
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    Works out at about £24.83 for a full month, less the £5 fee

    AER is 1.5%. Actual interest is 1.49%. If interest is left to be compounded its 1.5%,but you can't get compound interest on a £20k balance.
  • caveman38
    caveman38 Posts: 1,297 Forumite
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    Although I have since closed all my 3 San123 accounts (Myself, wife & joint) I can confirm that the last two interest payments were around £25 each time ( £24.45 & £25.30)
    I realised that with the £5 fee each month, the total interest was a mere 1.2% and that's before any tax due at years end.
    The only (in my opinion) benefit was Instant Access. That is unless you use it for cashback.
  • eskbanker
    eskbanker Posts: 30,995 Forumite
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    Were there two active direct debits on the account throughout the monthly period in question?
  • JustAnotherSaver
    JustAnotherSaver Posts: 6,709 Forumite
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    Send a secure message to Santander to ask them to explain?
  • caveman38
    caveman38 Posts: 1,297 Forumite
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    DeletedUser wrote: »
    Hi,
    I was under the impression that £20,000 would earn £300/year, or £25/month. However, it appears it only earns £225/year or £18.78/month.
    I had wondered if this was due to the £5 account fee, but i have checked, and this is deducted seperately.

    Can anyone explain this?


    Has this been the figure for a number of months or is this the first month and has it been a complete one?
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    edited 29 November 2017 at 3:03PM
    Edited post
  • Nick_C
    Nick_C Posts: 7,458 Forumite
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    Well thanks for your feedback on what are intended as helpful comments OP!
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