Anyone one got Santander 123 account?

WeeksyWeeksy Posts: 6,139
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How do you find it? This is the one with 3% interest on balances above £5k and cash back for direct debits?

I've got approx £10k in savings I'm looking to put away but vaguely accessible (I.e. Not locked up for 4 years), and the 3% interest rate is better than most savings accounts at the moment!
Fully aware there's a monthly fee, of £2 but that seems fair if, as by their calculator I'll be earnings around £400 interest with the cash back scheme.

It appears that if you have £1k and risk dropping into the red it's not good as the charges are high, but that's not an issue for me.

Anyone with any feedback, very interested to hear it. Seems too good to be true! Don't plan to be touching it for over 12 months.

Edit: some is already already sorted with an ISA, can't add any more this year :)

Comments

  • davidmcndavidmcn Posts: 12,086
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    Weeksy wrote: »
    Anyone with any feedback, very interested to hear it. Seems too good to be true! Don't plan to be touching it for over 12 months.

    Works fine for me. Note that it is meant to be used as a current account - you need to fund it with at least £500 per month, so you can't just dump £10,000 in and leave it.
  • Pumping IronPumping Iron Posts: 29,891
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    I've just set up a couple of accounts.
  • dmpdmp Posts: 3,242
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    I've got 3 accounts, don't forget you also need 2 active direct debits as well, but you also earn interest on these as well, could be council tax, phone bills, water rates and gas/electric. Certain ones have more interest, also get their credit card, 3% on fuel and free for the first 12 months then you cancel it. As Davidmcn said you have to have £500 a month going in.
    Dave
  • Judge MentalJudge Mental Posts: 18,593
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    It's a really good account and the £2 fee is more than taken care of by the cash back on bills. Me and my husband both have one and we've split our utilities between the two accounts to get the maximum benefit.
  • InkblotInkblot Posts: 26,889
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    davidmcn wrote: »
    Works fine for me. Note that it is meant to be used as a current account - you need to fund it with at least £500 per month, so you can't just dump £10,000 in and leave it.

    Yes - although there is a workaround where once a month you withdraw £500 in cash and then pay it back in again!
  • DMN1968DMN1968 Posts: 2,875
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    I have one and provided you are one of those who can keep a bit of cash in there and not keep on going overdrawn you will make fair bit of cash from the interest and the cashback on the bills. The ISA that goes with it is pretty good as well.

    I do believe that this £2 monthly fee is an attempt to condition people into paying for a current account, and expect them to start ramping this up over the next few years. But if they do, I will vote with my feet.

    If someone is unable to live within their means and keeps going overdrawn then better accounts are available.
  • WeeksyWeeksy Posts: 6,139
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    Thanks for this guys, appreciated. I don't expect to be going anywhere near the overdraft facility so not too concerned about the large OD fees.

    Any other thoughts welcomed, but all looking positive!
  • [Deleted User][Deleted User] Posts: 153
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    I've got one - it's great. I get £10 back a month on my mortgage alone, and some for council tax. I'd go into the branch and do it. You need to have a couple of direct debits set up on it so take in details of your existing accounts.

    The interest is only 2.4% after tax, mind (but that's still better than most ISAs).

    For the best possible deal ~
    I get my wage paid into the Halifax current account (they give you £5 a month for doing that - has to be £1000 or more) and then have most of it transferred out straight away into the Santander 123 account by standing order. Set it all up electronically at the start and it's all sorted every month - nothing to do & you're quids-in.
  • wenchwench Posts: 8,928
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    Maleficent wrote: »
    I've got one - it's great. I get £10 back a month on my mortgage alone, and some for council tax. I'd go into the branch and do it. You need to have a couple of direct debits set up on it so take in details of your existing accounts.

    The interest is only 2.4% after tax, mind (but that's still better than most ISAs).

    For the best possible deal ~
    I get my wage paid into the Halifax current account (they give you £5 a month for doing that - has to be £1000 or more) and then have most of it transferred out straight away into the Santander 123 account by standing order. Set it all up electronically at the start and it's all sorted every month - nothing to do & you're quids-in.

    Not sure if you realise that you have to deposit £500 per month CASH into your 123 account, which means that your standing order may not qualify as a cash deposit.

    I tried to set it up so it transferred from my other 123 account into my new 123 account I was using just for savings but was warned by Santander I couldn't do this and had to transfer it in cash manually each month.
  • [Deleted User][Deleted User] Posts: 153
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    wench wrote: »
    Not sure if you realise that you have to deposit £500 per month CASH into your 123 account, which means that your standing order may not qualify as a cash deposit.

    I tried to set it up so it transferred from my other 123 account into my new 123 account I was using just for savings but was warned by Santander I couldn't do this and had to transfer it in cash manually each month.

    Yeah, it's fine. I've had it for months and they're paying me the interest. I went in to the branch to arrange it and he said lots of people were doing that (Halifax transfer thing) and it didn't matter how it got there as long as it got there each month.

    I've had lots of porkies in the past from Santander staff though - people telling me I couldn't close a certain account, that I couldn't shorten my mortgage term etc. Persevere!!!
  • WeeksyWeeksy Posts: 6,139
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    wench wrote: »
    Not sure if you realise that you have to deposit £500 per month CASH into your 123 account, which means that your standing order may not qualify as a cash deposit.

    I tried to set it up so it transferred from my other 123 account into my new 123 account I was using just for savings but was warned by Santander I couldn't do this and had to transfer it in cash manually each month.

    So does that mean my salary won't count, as its going in as a BACS? Who has £500 a month cash to put in?! I can withdraw my salary and pay in as cash, but that seems a bit odd. I read it as £500 in any variety.
  • John146John146 Posts: 12,926
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    wench wrote: »
    Not sure if you realise that you have to deposit £500 per month CASH into your 123 account, which means that your standing order may not qualify as a cash deposit.

    I tried to set it up so it transferred from my other 123 account into my new 123 account I was using just for savings but was warned by Santander I couldn't do this and had to transfer it in cash manually each month.

    Don't think it has to be cash?, we have our state pensions plus my occupational pension paid in, as has been said more than pays the £2.00 per month account fee.
  • wenchwench Posts: 8,928
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    Ignore me peeps, I think the issue comes when you are trying to set up a standing order from another 123 account, least thats what I was told!
  • dmpdmp Posts: 3,242
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    Any money coming into the 123 account providing it's not from another 123 account counts towards the £500 total. Both my wifes and my money is paid in by bacs, I then transfer the excess into a Tesco account and straight back into our third 123. Works well for us.
    Dave
  • WeeksyWeeksy Posts: 6,139
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    Thank you.

    Contemplating a Halifax account to take my initial bacs into, monthly transfer into a Santander 123 where my direct debits are coming out of. Halifax will then be my "spending" account as such.

    Also tempted by Santander credit card as I spend a fair bit on fuel.

    Thanks for your advice
  • 1965Wolf1965Wolf Posts: 1,783
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    Weeksy wrote: »
    Thank you.

    Contemplating a Halifax account to take my initial bacs into, monthly transfer into a Santander 123 where my direct debits are coming out of. Halifax will then be my "spending" account as such.

    Also tempted by Santander credit card as I spend a fair bit on fuel.

    Thanks for your advice

    Yes I have both the 123 account and the credit card. Over the course of a year I guess it nets me around £360 net so while it's nothing to get too excited about its certainly better than nothing. You will need to set up a direct debit to make the full monthly psyments, to get the full benefit.
  • gregrichardsgregrichards Posts: 4,913
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    My dad has this account and is happy with it he has been recommending them to people. I am with Bank of Scotland but may change.
  • [Deleted User][Deleted User] Posts: 17
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    dmp wrote: »
    Any money coming into the 123 account providing it's not from another 123 account counts towards the £500 total. Both my wifes and my money is paid in by bacs, I then transfer the excess into a Tesco account and straight back into our third 123. Works well for us.
    Dave

    when you initially set the account up can you deposit say £5k from an existing 123 account to get the new account rolling or is this not allowed meaning you have to deposit an initial sum from a source not related to any santander account ?
  • dmpdmp Posts: 3,242
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    1966jon wrote: »
    when you initially set the account up can you deposit say £5k from an existing 123 account to get the new account rolling or is this not allowed meaning you have to deposit an initial sum from a source not related to any santander account ?
    Yes you can transfer from an existing 123, I opened 2 of my accounts that way.
    Dave
  • [Deleted User][Deleted User] Posts: 17
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    dmp wrote: »
    Yes you can transfer from an existing 123, I opened 2 of my accounts that way.
    Dave

    thanks
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