Santander123 As A Savings Account?

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  • I think part of the problem is banks still advertise their staff as 'Personal Bankers' or 'Banking Advisors', when in reality they're all sales people, there with the sole purpose to make the bank money.

    The sad part about it is people are led to believe (whether that be intentionally or they're too naive) that they're advising them on what's best for them.
    Better to keep silent and thought a fool than to open your mouth and remove all doubt.

    All views expressed here are my own and do not represent those of my family, friends or employer.
  • saintalan
    saintalan Posts: 562 Forumite
    When I set mine up I had two direct debits and two standing orders. One of the dd's has now ended, but I'm still getting interest 3 months on. You could always set up a dd to the national lottery or something, and depending on how much you have in there and especially if you play anyway it could still work out as a decent rate.

    I have had similar to above poster.

    As far as I read the DDs have to be active but not necessarily at fixed intervals or being used.

    Even a quarterly/annual DD should suffice as well as a Credit Card / old Energy Co no longer used.

    Perhaps somebody could confirm / comment?

    Cheers

    Alan
  • eskbanker
    eskbanker Posts: 30,421
    First Anniversary Name Dropper Photogenic First Post
    Forumite
    The actual wording in their Ts & Cs is that to receive interest you need to "have at least two Direct Debits set up on your account", so they need to be active in the sense that they're still present without being cancelled, but yes, they don't need to be at fixed intervals. However I'm sure I've seen on here that DDs that aren't in use for a period of something like 13 months may be cancelled automatically, so best not to rely on old unused ones remaining in place ad infinitum....

    And certainly don't rely on the lottery for 'a decent rate'!
  • Scarpacci
    Scarpacci Posts: 1,017 Forumite
    Yes, there is no requirement that the DDs have to be called at any point. They just need to be set up and active. It's probably wise to ensure they're used at least once, or you have a replacement, after year or so incase they are removed.

    I have a PayPal direct debit on my 123 account which I have never used. I think DDs expire after thirteen months so I'm going to use it once around the anniversary just to keep it active.
    This is everybody's fault but mine.
  • saintalan
    saintalan Posts: 562 Forumite
    Scarpacci wrote: »
    ...
    I have a PayPal direct debit on my 123 account which I have never used. ...

    Hi, how do you set up a DD from Paypal? Is it using their Pre-Approved Payment with an approved supplier, couldn't see DD on line.

    Thanks

    Alan
  • This thread proved very interesting to me; I arrived here hoping for some advice on what's basically the same subject.

    Following the recent budget, and a letter from his current provider, my Dad asked me to look over his savings situation with him. Alas I'm no expert, and while I'm fairly confident I've some sort of grasp on the nettle, I didn't want to give my tuppence worth until I was [a bit] more certain.

    At the moment, he's an ISA with ~£13k in it; it's an instant-access cash type product [this being his rainy-day pot]; It was paying 1.5% annually, but he's just received advice that the rate is about to change to 1.0%. He's also got a 123 current account; and is satisfying the conditions to earn the 3.0% AER offered.

    We had a quick look around the current ISA market to see if he could get a better deal, and it occurred to us that in terms of earnings, transferring the money from said ISA into his 123 account might be an option.

    My 'ciggy-packet' maths suggest that (continuing with his current ISA) his £13k would earn £130 over a year - with no tax payable on that amount. If he put those funds in his 123 account, that amount would earn £390 over the year. At this point I must say that tax on savings is something I've little knowledge of, but working backwards from payments made on his current balance I figured it to be ~20%; leading me to the conclusion that his £13k would net £312 over a year.

    We understand that a current account doesn't necessarily have the same stability-of-rate (etc.) as an ISA; and as such he'll need to be aware of changes, and consider what his options might be should there be a significant one, but broadly speaking, is our understanding of the mathematics of earnings (with current rates) correct?

    Eternally grateful for any advice you shrewd folks might be able to offer,

    Rob.
  • saintalan wrote: »
    Hi, how do you set up a DD from Paypal? Is it using their Pre-Approved Payment with an approved supplier, couldn't see DD on line.

    Thanks

    Alan
    It might not be the same for everyone, but if I log-in to PayPal and click 'Profile' on the menu bar, then 'My Money', I'm presented with a page of funding sources, and there's a section for Bank Accounts. If you go through the process to add your account there, they'll (IIRC) transfer a penny to your account with a reference code against the transaction which you re-enter at PayPal to confirm the account's yours; then the process of setting up a DD continues [just be aware that (again IIRC) once you've set-up an account which can be used for both payments and withdrawals, PayPal tends to default to the bank account for payments - so if you need to a use a card for whatever reason, make sure to check that's selected].

    Hope that's useful.

    Rob.
  • saintalan
    saintalan Posts: 562 Forumite
    Thanks Rob, does the DD then show on your Santander DDs?

    Cheers

    Alan
  • badger09
    badger09 Posts: 11,131
    First Post First Anniversary Name Dropper
    Forumite
    It might not be the same for everyone, but if I log-in to PayPal and click 'Profile' on the menu bar, then 'My Money', I'm presented with a page of funding sources, and there's a section for Bank Accounts. If you go through the process to add your account there, they'll (IIRC) transfer a penny to your account with a reference code against the transaction which you re-enter at PayPal to confirm the account's yours; then the process of setting up a DD continues [just be aware that (again IIRC) once you've set-up an account which can be used for both payments and withdrawals, PayPal tends to default to the bank account for payments - so if you need to a use a card for whatever reason, make sure to check that's selected].

    Hope that's useful.

    Rob.

    Pretty much - though the payments into your bank account are for random small amounts and to complete the setup process you have to confirm those random amounts. I had fun with 2 accounts which ended in the same 4 numbers - which is all PayPal displayed for verification purposes, but a very helpful call handler - yes really :D, helped me sort it out.
  • badger09
    badger09 Posts: 11,131
    First Post First Anniversary Name Dropper
    Forumite
    This thread proved very interesting to me; I arrived here hoping for some advice on what's basically the same subject.

    Following the recent budget, and a letter from his current provider, my Dad asked me to look over his savings situation with him. Alas I'm no expert, and while I'm fairly confident I've some sort of grasp on the nettle, I didn't want to give my tuppence worth until I was [a bit] more certain.

    At the moment, he's an ISA with ~£13k in it; it's an instant-access cash type product [this being his rainy-day pot]; It was paying 1.5% annually, but he's just received advice that the rate is about to change to 1.0%. He's also got a 123 current account; and is satisfying the conditions to earn the 3.0% AER offered.

    We had a quick look around the current ISA market to see if he could get a better deal, and it occurred to us that in terms of earnings, transferring the money from said ISA into his 123 account might be an option.

    My 'ciggy-packet' maths suggest that (continuing with his current ISA) his £13k would earn £130 over a year - with no tax payable on that amount. If he put those funds in his 123 account, that amount would earn £390 over the year. At this point I must say that tax on savings is something I've little knowledge of, but working backwards from payments made on his current balance I figured it to be ~20%; leading me to the conclusion that his £13k would net £312 over a year.

    We understand that a current account doesn't necessarily have the same stability-of-rate (etc.) as an ISA; and as such he'll need to be aware of changes, and consider what his options might be should there be a significant one, but broadly speaking, is our understanding of the mathematics of earnings (with current rates) correct?

    Eternally grateful for any advice you shrewd folks might be able to offer,

    Rob.

    You're reasoning is fine.

    Bear in mind that Santander's 123 interest rate is variable, so not guaranteed. ISA rates are poor at the moment and can be beaten by many current accounts. Have a look at TSB's new Classic Plus, Lloyds new Club, and Nationwide Flexdirect - 5%/4%/5% with a few 'hoops' but easy to get around - especially if you read around the forum:)
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