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Santander First Home Saver Account

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I've been looking for an inflation beating saving account and another thread pointed me toward this. Great if your under 35. Typical I'm 36, but my money is as good as it was last year. Ok its worth a bit less thats why I need this account.

How can they get away with this? It's age discrimination!

First Home Saver (Special Issue 1)

Save in order to take that first step on the property ladder

Why choose the First Home Saver (Special Issue 1)?

Further Information

Apply now Back to Top

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Save in order to take that first step on the property ladder

Getting that all-important first step onto the property ladder can be tough. Our First Home Saver (Special Issue 1) gives you a helping hand, offering a competitive variable rate that will help boost your savings for your deposit on your first home. To find out more about the First Home Saver (Special Issue 1), call in to your local branch.

Apply now Back to Top

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Why choose the First Home Saver (Special Issue 1)?

Enjoy – a great variable interest rate of 5.00% gross/AER on your savings for your first home.

Save – Make an initial deposit of between £100 and £5000 and then save between £100 and £300 per month by standing order to get the preferential rate. You will receive a lower rate of 0.10% gross/AER when you pay in under £100 or over £300 in any calendar month, but for that month only. The maximum balance on the account is £50,000. If you miss a payment you will receive an interest rate of 0.10% gross/AER for that month only.

Reward – Get a great rate for saving regularly towards a deposit for your first home and in return all we ask you to do is have a mortgage interview up to 90 days before you come to close the account.

Easy – Instant access to your First Home Saver via branch. Please note there are no partial withdrawals allowed on this account. You can access your funds at any time but will need to close your account. To close your account you will need to bring in two forms of ID plus the validation checklist that you were given on account opening.

Flexible – pay into the First Home Saver by standing order.

Eligibility - To qualify for a First Home Saver (Special Issue 1) you must be:

1. Under the age of 35

2. A first time buyer

3. Able to save an amount between £100 and £300 each month

First Home Saver (Special Issue 1) – rates below are variable

Tier

Gross p.a./AER

£100 - £50,000

5.00%

You will receive a lower rate of 0.10% gross/AER when you pay in under £100 or over £300 in any calendar month, but for that month only. All rates above are variable. For further details on interest rates please visit our rate and fees pages.

Apply now Back to Top

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Further Information

Interest is calculated on the daily balance of the account, and is paid annually on the anniversary of account opening. For example, if you saved £100 per month for 12 months, you will get back your deposits totaling £1,200 (12 x £100), and will have received in total approximately £32.50 gross interest during the year (provided no withdrawals are made during the year).

AER stands for Annual Equivalent Rate and shows what the interest rate would be if we paid interest and added it to your account each year. The gross rate is the interest rate we pay before income tax is taken off.

Rates effective from 1st March 2009.

Apply now

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Have you got the money in a savings account now? A quick search on a price comparison site shows a dozen other accounts paying 5% plus - with hefty conditions though. You should be able to get 3% with no strings in a regular online saver.

Edited by rantnrave

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Sounds awful. Plus I'd sooner give my money to Baby Rapists Bank Plc than Santander (and feel considerably less morally corrupted). Oh wait now I'm tempted, arghhh see?? Devil's bank tbh.

5% isn't beating inflation either... Wait for the NS ILSC to come out again and fill your boots (with 15K rather than 5K). Plus no infants get harmed.

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Have you got the money in a savings account now? A quick search on a price comparison site shows a dozen other accounts paying 5% plus - with hefty conditions though. You should be able to get 3% with no strings in a regular online saver.

The trouble is that 3% is not easy to find and after tax you get 2.4%.

The santander account gives you 4% after tax, something that no isa's are even managing.

Open the acct, take the hit on month 1 and receive only 0.1% interest but fill it with the maximum 50K. You make close to £4k a year in interest.

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The trouble is that 3% is not easy to find and after tax you get 2.4%.

The santander account gives you 4% after tax, something that no isa's are even managing.

Open the acct, take the hit on month 1 and receive only 0.1% interest but fill it with the maximum 50K. You make close to £4k a year in interest.

3% is easy to find! A quick glance at an online comparison site for instant access savings account will reveal all.

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3% is easy to find! A quick glance at an online comparison site for instant access savings account will reveal all.

ok so there are some that are easy to find at 3%, mostly including a bonus, but does that change the facts about what you get after tax and what the homesaver account gives you?

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I think I shall go and check out this account tomorrow on my lunch break. Currently getting 3% pre TAX with the PO. I shall inquire as to whether I could dump 48k in there on the first month and then just save £100 a month and get the 5% (what happens with these types of accounts when you get to the maximum balance?).

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I've been looking for an inflation beating saving account and another thread pointed me toward this. Great if your under 35. Typical I'm 36, but my money is as good as it was last year. Ok its worth a bit less thats why I need this account.

How can they get away with this? It's age discrimination!

Age discrimination laws apply only to employment, not to the provision of other goods and services.

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I've had this account since early 2009 - Not sure about putting 48K in one month, although it doesn't technically say you can't.

I put in the £5000 initial deposit and have been putting in £200 since, so up to around 10k now.

I completly forgot it was paying 5%, may have to up my S/O or deposit a load (if that's allowed) as my other savings account doesn't get much.

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Any news on anyone putting in over the £300? I've got about £7000 I'd like to put in - if I ask the staff if it's allowed they will probably say no because it sounds wrong! I'm tempted to try it as there seems like there's nothing to lose.

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Any news on anyone putting in over the £300? I've got about £7000 I'd like to put in - if I ask the staff if it's allowed they will probably say no because it sounds wrong! I'm tempted to try it as there seems like there's nothing to lose.

yes, wifey did it. Open the account and in the same month fill it to 50k. You get reduced interest for that month alone.....big deal, full interest on the full amount every month after.

You still have to have money going in every month and they told her that anything over 50k gets paid at a lower rate.

You can put in what you like but you take a hit on the interest for that month so do it in one go and best to keep it to about 48k so that you dont have extra cash in their not earning.

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I've opened one of these now and transfered 48k in. The woman at Santander also didn't know the answer to a lot of questions, and even replied: "Well anyone with that amount would have found a place to buy!" to which I replied "I have more than that and I haven't bought". She then wanted me to put the lot into 3-4year bonds "Er... no thanks".

Anyway I eventually got to the bottom of the paying in a lump sum and the feedback was that I could pay in any amount but I would loose the interest in that month if it was less than £100 or more than £300.

Also if you go over the £50,000 apparently you don't get any interest at all! But in a year when my first interest lump is paid and I go over £50k I suspect there will be other places to put my money.

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Oh I'll also add my experience of Santander has been a poor one.

Earlier this year I tried to open a new current account but couldn't because at the time I didn't have the required ID. This is despite holding a A&L account. Anyway as I explained this to the woman who was setting up my home saver she said "thats odd... as it seems you are on the system as 'registered' and you shouldn't have needed any ID".

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I've opened one of these now and transfered 48k in. The woman at Santander also didn't know the answer to a lot of questions, and even replied: "Well anyone with that amount would have found a place to buy!" to which I replied "I have more than that and I haven't bought". She then wanted me to put the lot into 3-4year bonds "Er... no thanks".

Anyway I eventually got to the bottom of the paying in a lump sum and the feedback was that I could pay in any amount but I would loose the interest in that month if it was less than £100 or more than £300.

Also if you go over the £50,000 apparently you don't get any interest at all! But in a year when my first interest lump is paid and I go over £50k I suspect there will be other places to put my money.

That needs investigating. Wifey was told that if the account exceeds 50k then you get the 5% on the 50k and 0.1% on the ammount over and above.

I dont see how they can justify stopping all interest. If they did that then the account will be emptied the same day.

One thing that we didnt get any answer on was how the money will be paid out/transfered on the closure of the account. Did you get any answers or just lots of staff that dont know fk all?

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You can - sort of. I asked the same question at my local branch. From what I remember, you can only deposit up to 5k max to open it. You can then add a lump sum, but this would only be for month 2. I can't remember whether the initial deposit, if over £300, also means only 0.1% that month. Obviously the loss of one/two month interest impacts the overall rate. Example: start with 5k, 2nd month 48k then 300 per month equates to rate of 4.16% on 56k total, versus the 5% offered (where first 2 months at 0.1%). Still not terrible if you can get a lump sum in early.

Bear in mind as a general point that it's not really paying you 5% over a year. You're adding a sum each month that compounds at an annual rate of 5% which does not mean that the final sum will be anywhere near 5% of the total you pay in (example if you were to pay in 5k then 300 each month - and the first month is 0.1% - the annualised return is actually a simple rate of 3.8% on the total paid of 8300 so if you had that total amount available today that's the rate you should be comparing with others).

Edit: should add the person I spoke to at santander didn't seem sure herself and had to check with the manager and even then appeared surprised, so if I was to go for it I'd want to get something in writing confirming the payments.

Yes, but you still get whatever interest rate you were getting on the money that isn't in there. It really is 5% on the money that is there, just that you can't get as much as you would like in the account.

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That needs investigating. Wifey was told that if the account exceeds 50k then you get the 5% on the 50k and 0.1% on the ammount over and above.

I dont see how they can justify stopping all interest. If they did that then the account will be emptied the same day.

One thing that we didnt get any answer on was how the money will be paid out/transfered on the closure of the account. Did you get any answers or just lots of staff that dont know fk all?

You need to go and see a mortgage advisor within 90 days of closing the account and then the money is yours to do as you wish. Thats the clause that annoyed me a bit but I can live with taking an hour out of my day to sit in the branch and fob off their monkey (forces me to take my lunch hour which I never do - so really its free time out of the office).

I think I'll just ******** the advisor and say I'm buying for cash don't need one then the money can be transferred into my nominated account.

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Just seen this in term and conditions:-

To close your account you will need to bring in two forms of ID plus the validation checklist that you were given on account opening.

Can someone please explain what the validation checklist means. I am thinking of applying even though I am an STR as I sold up over 4 years ago. I dont think they will check my credit file for a morgage.

Edited by FLASH_2007

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I have just opened one of these accounts today, being as I turn 35 in just a few months I figured I'd best get in there pronto. I noticed in the small print it said that if you deposite more than £300 in one month, they reserve the right to close the account. However, I explained that I would want to stick up to £30k in the account in one hit, after my £5k deposite and she didn't seem to think there would be a problem with that. She did look at fix rate bonds (which I wouldn't have taken her up on!) but said that even then, putting £30K odd in this account would still give me a better rate of return.

I need to put the initial deposite in via cheque and then set up the standing order for the following month. However, it seems the only way I can get the big lump in is to increase my standing order to that level for one month and then returning back to the 100-300 figure again for the next month. Is this how others on here transfered their buig lump in, or where there other option ie did they allow an addditional cheque payment to be made into it?

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Just had a letter about my account.

The 5% is dropping to 3%, and also some other changes (you can now put in as much as you want up to the £50,000)

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Thought it was too good to be true to expect it to carry on! Did they say when the new lower rate takes effect? Looks like it's time to find somewhere else to dump it.

From mid November. On the positive side the account then becomes instant access with no withdrawal limits or monthly quotas, and no need to speak to them about a mortgage when you close it.

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  • 312 Brexit, House prices and Summer 2020

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      • down 5% +
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