Money Insider: Santander – up front with savings interest
Saturday 12 November 2011
It's been a hive of activity in the savings market over the last couple of weeks, with some cracking new fixed rates being launched as well as an eye-catching new promotion from the Spanish banking giant Santander.
As part of its continued aggressive drive to win more personal bank accounts, Santander has come up with a new product which will pay three years' worth of savings interest up front for customers with or who open a Santander current account.
As well as the requirement to hold a current account with the bank, you'll also need a minimum savings balance of £10,000 to be eligible to open one of the new Upfront Savings Bonds.
The option to be able to earn three years' worth of interest in advance, even though the rate is less than market leading, will no doubt appeal to some savers, particularly those who rely on their interest income to help with day-to-day living costs.
You can currently get better fixed rates of 4.30% gross with Yorkshire Bank and 4.15% gross with AA Savings where a £12,000 balance would net you £1,238 and £1,195 respectively after three years, compared with the £1,000 net which you'd receive under the Santander deal.
The concept is unique in the UK savings market and even though the rate being offered is not a best buy, I'm sure some people will be content to accept a lower return as a trade-off for 3 years' worth of interest up front.
As well as a means of increasing its share of the current account market, the maximum savings limit of £2m could bring in a significant amount of new credit balances for Santander too.
It's an interesting move in what has become a lacklustre and sterile savings market. Time will tell if it's enough of a carrot to convince many people to switch their bank account.
It's refreshing to see this sort of innovation, giving savings customers more options in this low interest rate environment, and comes a little after a month after high-street rival Halifax launched its monthly Savers Prize Draw. Maybe it will inspire other providers to respond with their own fresh ideas.
Coventry launches Poppy Bond
The latest edition of the popular Poppy Bond from Coventry Building Society is now on sale, paying 3.55% gross/AER fixed until 30 April 2013.
The bond can be opened in branch, online or by phone, and has a minimum balance requirement of just £1. There is a monthly interest option of the account available, but as with the majority of fixed rate accounts, be aware that there is no access to your capital until the bond matures.
The rate on this 18-month deal is competitive but doesn't live up to the current best buy rates for one and two year bonds. However with this particular savings bond, it's not all about what's in it for the customer, it also delivers an important contribution to one of our most worthy charities.
Coventry Building Society will donate 0.05% of the total amount invested in this bond to the Royal British Legion. Previous bond sales have raised in excess of £5m for this cause since the poppy product range was launched in 2008. The much-valued work of the Royal British Legion is as important and relevant now as it has ever been and let's hope this latest bond leads to another significant donation.
Clydesdale and Yorkshire blitz fixed rate best buys
Savers looking for a decent return on their fixed rate savings will welcome the latest range of table-topping deals from Yorkshire Bank and Clydesdale Bank.
It's quite normal to see a bank or building society launch a one-off best buy deal targeted at a specific term, but Yorkshire Bank and Clydesdale Bank has thrown down the gauntlet across the board, offering the top rate for 1 year (3.60%), 2 year (4.00%), 3 year (4.30%) and 5 year (4.70%) bonds.
There are monthly interest versions of these bonds available, but this facility is only available if you have a separate account with Yorkshire Bank for the interest to be paid to.
The rates for 1 and 2 year bonds are still only paying barely half what they were three years ago, but it's time to move on and accept that we're not going to see savings rates at that level for some considerable time.
We need more examples of this sort of competition to drive up interest rates. It will be interesting to see how long these products remain on sale and whether it will provoke a positive reaction from the rest of the market.
Andrew Hagger – Moneynet.co.uk
Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk
Buying property overseas? Check out these hotspots
China stock collapse: Five things you need to know about 'Black Monday'
Kate Hudson's online sports brand Fabletics drains your account if you don't say 'stop'
Bargain Hunter: Exclusive discount on a SmartGlider - a self-balancing electric scooter
Number of parents moving to their desired school catchment area is increasing, according to Santander research
- 1 Huawei Mate S and Huawei Watch: new products take on iPhone 6 Plus and Apple Watch
- 2 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
- 3 If these extraordinarily powerful images of a dead Syrian child washed up on a beach don't change Europe's attitude to refugees, what will?
- 4 Senior British politicians tell David Cameron: When dead children are being washed up on beaches – it's time to act
- 5 German police forced to ask public to stop bringing donations for refugees arriving by train
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Senior British politicians tell David Cameron: When dead children are being washed up on beaches – it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don't change Europe's attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...
£20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
Day In a Page
With four bedrooms, this spacious maisonette in a mid-terrace period-style house in Holland Road is well-maintained and offers high ceilings and period features.
The terraces of this two-bedroom penthouse apartment offer panoramic views that stretch over fifty miles from the cliffs of Beachy Head.
In the heart of the coastal village of Mumbles and moments from the pier, this five-bedroom Victorian terrace is set over three floors and retains many original features.
In a sandbanks location, moments from the beach, this three-bedroom apartment has a large open-plan living area and a south-west facing balcony.
This four-bedroom home has an annexe accessed from the side of the house, with potential for improvement and conversion subject to the necessary permissions.
In the heart of the hamlet of Wardley, this five-bedroom period home offers countryside views and a stylish interior, with original features and open fireplaces.
Offering countryside views and landscaped gardens, this three-bedroom Grade II-listed lodge has a spacious conservatory and a large cellar that could serve as a workshop.
Set in approximately 1.5 acres, this four-bedroom home comes with a second, detached property that's currently used as an annexe.
In the hamlet of Newchurch, this former parish church is now a four-bedroom home complete with clock tower and eyrie.
Offering scenic views from a large balcony and sun terrace, this four-bedroom home has a wraparound garden and a heated swimming pool.
Offering views across the Humber and East Yorkshire Wolds from a glass panelled balcony, this four-bedroom barn-style home befits a life of leisure.
This four-bedroom home offers versatile accommodation with annexe potential; features include a hot tub, sauna and Norwegian BBQ hut.
Well-located for schools, colleges and the town centre, this contemporary thatched cottage offers flexible living space with six bedrooms.
Built in 1907, this four-bedroom Edwardian period home has been refurbished by the current owners, retaining many original period features.
Surrounded by landscaped gardens, this five-bedroom home offers living space across three floors.
This lovely country home in Burnham Market is currently run as a popular holiday cottage, with five en suite bedrooms and colourful gardens.
This three-bedroom 17th-century former village bakery is just a few miles from the East Sussex coast.
Set on a landscaped plot, this light and airy four-bedroom home comes with a log burner in the lounge, a fitted kitchen and an open-plan ground-floor layout.
Set sail for this four-bedroom farmhouse in Cowes. With five acres of land and an indoor pool, this home oozes character. There is even potential to let a one-bedroom annexe.
Built on a former chapel site, this impressive four-bedroom home boasts balconies, stunning views and contemporary modern living.
This three-bedroom house is situated in a quiet mews and set over three floors. Features include glazed staircases and high ceilings.
A period townhouse set over four floors, this five-bedroom home was built in the 18th Century and retains many original features.
With five bedrooms, this spacious home offers beautiful gardens and modern interiors - set within the popular market town of Bingley.
A few miles from the seaside at Perranporth, this four-bedroom farmhouse sits amongst nine acres of idyllic grounds - including a lake and two barns used as holiday lets.
In the pretty market town of Bungay, this grade II-listed Mill House is arranged over four floors, offering four bedrooms and three reception areas.
This first-floor flat comes with two bedrooms, an impressive open-plan reception room and two lovely roof terraces.
This five-bedroom home comes with a range of outbuildings including a large barn which could be converted into a self-contained granny-flat or rental.
Moored at Taggs Island and reached via a pretty garden, this two-bedroom houseboat has a vaulted reception room and skylit garden studio - currently a beauty salon.
On the edge of the city, this six-bedroom home comes with an outdoor swimming pool and a large garage block that has annexe potential.
A contemporary house spread over three storeys, this three-bedroom detached home has large sliding doors that open out to the River Quaggy.
Moored in Chelsea's Cheyne Walk, this houseboat offers two double bedrooms and a teak deck that's ideal for al-fresco dining.
This former village bakery, dating back to the 17th century, is now a three-bedroom detached home just a few miles from the East Sussex coast.
On the picturesque Isle of Man, this four-bedroom character home has a ground-floor shop that's currently run as a newsagents and a flat that would make an ideal holiday let.
In a new collection of flats, this first-floor two-bedroom apartment offers ample entertaining space and a prime view of Furze Green from a private balcony.
This three-bedroom stone-built cottage currently trades as the village store with a restaurant in the annexe and family accommodation on the upper floors.
Previously two semi-detached properties, this five-bedroom home is spread over three floors with a large breakfast kitchen, orangery, office and gym on the second floor.
This five-bedroom home enjoys countryside views over the Blyth estuary to Southwold, offering flexible living space with a ground-floor annexe - ideal for use as a holiday let.
Close to the market town of Eye, this four-bedroom detached home offers a double-height living room which takes the place of the original, 19th-century, chapel nave.
Dating back to the 19th century, this four-bedroom home needs modernising. Spanning three storeys, the red-brick house has a fireplace, a small terrace and a cellar.
Just outside of Cambridge, this single-storey home offers three double bedrooms, a living room with vaulted timber ceiling and ladder steps that lead to a mezzanine study area.
This six-bedroom Georgian home is on three floors with open fireplaces, a two oven Aga, an annexe, and cottage gardens with outbuildings and a car barn.
A former coach house, Glebe Farm Stable is now a three-bedroom cottage with a double car barn, an attached office, kennels and an outbuilding that's currently used as a gym.
Located beside an impressive Victorian viaduct, this four-bedroom home has an open-plan living area that is glazed on two sides, with skylights and high ceilings.
A former furniture workshop, this three-bedroom home has high ceilings and painted brick walls, in a village setting only fifteen miles from the coast.
This five-bedroom stone townhouse features a pine staircase and an Inglenuk fireplace, double doors from the lounge give access to an enclosed courtyard.
This five-bedroom, detached home blends traditional and modern design; the sleek kitchen features a gas hob and oven set within an exposed chimney breast.
Capitalise on the fabulous views of Trevone Bay by taking two homes and creating one spacious boutique B&B. Just a cliff-top walk from Padstow.
Surrounded by woodland, this five-bedroom manor house has plenty of outdoor storage space in the form of three converted loose boxes, two smaller outhouses and a woodstore.
This six-bedroom home is set amongst three acres of grounds. Currently a large family home, Clift Hill has potential to make a B&B or countryside retreat, subject to change of use permissions.
This Grade II-listed three-bedroom home is situated on a private road, just a short walk from the sandy beaches of Frinton-on-Sea.