Savings Offer

[malagabob]

Was told about a 12 month savings offer that sounds good but have a query .Details as follows.
Pay in up to £200 per month, 5% AER gross interest. Interest payments made on or after April 6 will be paid using the gross rate. This means all the interest paid will be without tax deducted.
Bank staff member said if I save the maximum Over the 12 months I will earn £64 untaxed interest. Does this sound right. TIA

[fiction-factory]

In broad terms average balance over year would be £2400/2=£1200. Interest at 5% would be £60
So, yes

[fiction-factory]

(In practice the first payment is made at the start of the month so interest will be a little higher than my broad brush figure)

[bhg481]

This sort of offer is available from many banks. The thing to be aware of is that you can only save for 1 year and then the savings are transferred to an account paying very little interest. You are free to move it to another account then, if you wish, and can start another 12 month, high interest account. So long as you are aware you need to move it after the year is up it is a good offer (we have such accounts) and it's even worth transferring money from other savings accounts to take advantage of it.

[fiction-factory]

was it santander? I've just discovered this account hidden away on their pages so opened one- but they don't seem to be promoting it much to existing Santander customers