Santander have extended their 2.5% Regular eSaver to all Santander current account holders now, and not just their 123 accounts.
Possibly because that rate isn’t a leader at the current time.
The max £200pm would yield just over £32 in a year.
May interest some, hence the post, though I’ll be giving it a pass.
Don’t like that they are forcing you to fund via your santander current account. Just means you have to set up two standing orders
Seems to be no penalty for withdrawals, so could be a handy rate booster
Tried to apply in the app and the Continue button wouldn’t work, so… Not impressed. I wish these accounts were preapproved with your current account and you could just tap a button to start saving.
You also have to watch the auto renew after twelve months, regardless of the rate of the product at that time.
Hmm, yeah, not a fan of so many caveats
Isn’t this the case for all regular savers from high street banks? I assume they exist mainly to encourage people to open or keep current accounts with the bank.
Unlike some other regular savers (e.g. HSBC, First Direct) there is no interest penalty for early closure. So it doesn’t really matter if you are auto renewed into a new 12 month term and then decide you want to close the account before that term ends.
I’m afraid it does, when you do not realise that they have auto-renewed you and you cancelled the standing order as the current rate was undesirable.
This happened to me a few years ago.
My RS matured around the July and I stopped my SO, expecting the RS had finished. Alas not, cos when I “opened” one in the Sep of that year and funded it as normal, it “matured” the following July!! Hence I lost interest as did not save for full twelve months.
Complained to Santander about it as I did not explicitly renew or open a RS in July, but they would not budge.
It was odd though, cos they paid me the rate of the Sep product for that 10 months of saving
Didn’t push it as it was not big money. Perhaps I should have
Instead, vowed not to use their RS again. Simple really.
It is, but I’ve never seen it enforced. Santander seem to be making this a bit more prominent so perhaps intend to push it
I suspect if you had requested closure of the auto renewed account prior to restarting payments in September you could have got a new 12 month term from September. I’m pretty sure I have closed an account in the past and then opened a new one with a new 12 month term. I wanted to shift the month that my various regular savers were maturing and I remember being able to do this with my Santander account.
If auto renewal isn’t desirable I think one way to avoid it is to setup a standing order with an end date in month 12, rather than have an ongoing standing standing order that may still be active on the date of account maturity.