Santander 5% savings
Options
The_Jester
Posts: 230 Forumite
I took out a 5% savings account with Santander last year. The maximum I could invest was £2400 for a year so I put away £200 every month. It's due to mature next week.
I mistakenly thought I'd earn £120 interest (5% of £2400) but I learned today the way it was calculated on the amount each month i.e 5% of £200 the first month then 5% of £400 the next and so on.
It turns out I've only made around £60. Better than a kick in the gonads I know but I'm pretty sure the way it was sold to me let me think I was earning 5% of £2400.
Anyway I received a call today from my local Santander office telling me if I closed down that account on Monday and withdrew my money and then opened up another savings account I'd start a new savings account 5% for another year. The deal closes on Tuesday.
I could kick myself for not looking at the T&C's correctly and I'd rather go elsewhere but if there's no better out there then I'll do what he mentioned.
So is there any better out there or am I best taking out a new savings account with Santander?
I mistakenly thought I'd earn £120 interest (5% of £2400) but I learned today the way it was calculated on the amount each month i.e 5% of £200 the first month then 5% of £400 the next and so on.
It turns out I've only made around £60. Better than a kick in the gonads I know but I'm pretty sure the way it was sold to me let me think I was earning 5% of £2400.
Anyway I received a call today from my local Santander office telling me if I closed down that account on Monday and withdrew my money and then opened up another savings account I'd start a new savings account 5% for another year. The deal closes on Tuesday.
I could kick myself for not looking at the T&C's correctly and I'd rather go elsewhere but if there's no better out there then I'll do what he mentioned.
So is there any better out there or am I best taking out a new savings account with Santander?
0
Comments
-
This misunderstanding comes up many time on here. Santander are very clear in showing how much interest the account will earn, the information currently shows £64.33 at the end of term. The account, as does any other, only pays interest on the amount that is actually in it on a daily basis. They are not going to pay you interest on money that is not actually in the account. If you can find an account that pays more than 5% on money that is actually in it then by all means go elsewhere. These monthly savers should be used as part of your overall savings strategy, keep the money somewhere it will get the next best interest until you move it into the 5% saver thus maximising what that money earns overall.0
-
Yup! As the Americans say OP,
your bad!
Mine matures at the same time as yours btw.Space available for rent0 -
Thanks Molerat. My head was elsewhere at the time when I opened the account . I'll pay more attention next time0
-
The_Jester wrote: »I took out a 5% savings account with Santander last year. The maximum I could invest was £2400 for a year so I put away £200 every month. It's due to mature next week.
I mistakenly thought I'd earn £120 interest (5% of £2400) but I learned today the way it was calculated on the amount each month i.e 5% of £200 the first month then 5% of £400 the next and so on.
It turns out I've only made around £60. Better than a kick in the gonads I know but I'm pretty sure the way it was sold to me let me think I was earning 5% of £2400.
Anyway I received a call today from my local Santander office telling me if I closed down that account on Monday and withdrew my money and then opened up another savings account I'd start a new savings account 5% for another year. The deal closes on Tuesday.
I could kick myself for not looking at the T&C's correctly and I'd rather go elsewhere but if there's no better out there then I'll do what he mentioned.
So is there any better out there or am I best taking out a new savings account with Santander?
Forget about the interest 'issue'.
What did the person over the phone mean by the above in bold, underline AND in italics?
:eek::grouphug:
Official MSE canny forumite and HUKD VIP badge member :grouphug:0 -
Well now you understand and looking back can hopefully see that it was never reasonable to expect them to pay you interest on the money while it was not in the account. It is calculated based on the daily balance.
The trick with 5% regular savers is to have a few of them with different banks with offset opening dates across the year so you always have a rolling balance earning 5%. My view is the Santander and Nationwide ones are best as they also offer penalty free early access.
Alex0 -
Peelerfart wrote: »Yup! As the Americans say OP,
your bad!
Mine matures at the same time as yours btw.
Are you opening up a new one on Monday?
I guess I was also wondering why he mentioned I would still get interest if technically I'm taking out the money a few days before it officially matures (Oct 6th)0 -
Yeah, I probably will, it's still one of the best aroundSpace available for rent0
-
-
The_Jester wrote: »Exactly that. He said if I want to start a new savings account as my existing one the deal closes Tuesday.
Time will tell I guess whether this is the end of Santander's 5% regular saver.:grouphug: Official MSE canny forumite and HUKD VIP badge member :grouphug:0 -
I have a couple of 5% reg savers ending in November, not had any news from them that it is ending or a decrease in % rate, in fact they renew is automatic now0
This discussion has been closed.
Categories
- All Categories
- 343.5K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.9K Spending & Discounts
- 235.6K Work, Benefits & Business
- 608.6K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards