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Santander 123 Current Account - Interest
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Does anyone have one of these accounts? I take it the interest for balances between £1000 and £20,000 is paid yearly? and not monthly?
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Probably the APR.
thanks for the info.
Still would be a decent amount per month more that any savings account which is not tied to a set period.
There is no interest payable on balances over 20k.
It's a reasonable deal in the current climate and you can have more than one account, though it might be hard to pay £500 into that each month and set up 2DDs in addition to account 1.
But you don't get any interest on the first £1,000.
You get 1% interest on the £1,000 between £1,000 and £2,000, which is £0.83
You get 2% on the £1,000 between £2,000 and £3,000, which is £1.67.
You get 3% on the remaining £7,000, which is £17.50 per month.
You get taxed at 20% on the £20 gross interest
That brings it down to £16 interest per month.
Take off the £2 fee and you are only getting £14 per month for your £10,000.
And you need to fund it with £500 each and every month and have two DDs.
Scottish Power aren't on their energy supplier cashback list.
If your balance is over £1000 and under £2000 you get 1% on the whole amount.
If your balance is between £2000 and £3000 you get 2% on the WHOLE balance.
If your balance is between £3000 and £20000 the you get 3% on the WHOLE balance.
If you have over £20000 then you will receive 3% on the first £20000 and nothing on the balance above that level.
As has been said, you do have to have a couple of direct debits and there is a fee, but that's likely to be offset by the cashback.
If you want multiple accounts (I believe you're allowed 2 per person based on what I read on MSE a while ago) but going to struggle with the £500 per month per account, just set up a standing order from one to the other and back again.
btw once you get above £1000, you do get interest on the whole balance. "Interest rates will apply on the first £20,000 of your entire balance once you have at least £1,000 in your account."
It's not very clear from their website.
£10,000 in a cash ISA (one just before a tax year ends, the other at the start of the next one, for example) at 2% will pay you £200 pa.
But its a very good deal.
I've recently put my savings into two current accounts with Santander. It seems like the best deal at the moment. Only did it a few weeks ago, but the process was very simple and went smoothly. So far so good.
There are daily limits on cash withdrawals and you don't have to use a card if you treat it as a savings account.
To transfer money online requires validation of any new payee. They even rang me up when they noted my mobile was on a new network when I tried to confirm a new payee.
Dave
For example last month my balance was approximately £13500 and I have 7 direct debits coming out (council, water, utilities, tv and phone. the interest paid was £31.31 (hubby is a non tax payer) and the DD cashback was £6.72 minus the £2 fee. so the account earned me £36. 03 in a month
OH and I have a joint 123 account and today set up another one each - I distinctly remember the staff member saying that the £500 has to come from a non Santander account, presumably to prevent what you've just suggested.
We used the current account switching service last month and was pleasantly surprised at how smoothly it went.
thanks everyone for the info.
You can set up reminders and Santander will text/email you to say money has been withdrawn or text/email if a large payments has come out your account. I switched 18 months ago and I have been very happy with all the service I have received.
edit : the only thing that annoys me is you can only pay-in 5 bags of coins.