Santander Last 3% Payment

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JGUK
JGUK Posts: 222 Forumite
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in Budgeting & bank accounts
When is the last 3% interest payment due on the 123 Current Account ?

Is it at one point in November depending on your account anniversary ?
Thanks
JG

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  • bengal-stripe
    bengal-stripe Posts: 3,349 Forumite
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    JGUK wrote: »
    When is the last 3% interest payment due on the 123 Current Account ?

    Is it at one point in November depending on your account anniversary ?

    Interest is calculated daily and paid monthly.

    So you will get the last time 3% on the balance of Oct 31st and as Nov 1st it will be 1.5%. Your interest payment in November (whatever day of the month that is) will consist in part of the 3% rate with the rest at the 1.5% rate.
  • JGUK
    JGUK Posts: 222 Forumite
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    Cool thanks for that !
    Thanks
    JG
  • Dragonfly1
    Dragonfly1 Posts: 120 Forumite
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    bengal-stripe wrote: »
    Interest is calculated daily and paid monthly.

    So you will get the last time 3% on the balance of Oct 31st and as Nov 1st it will be 1.5%. Your interest payment in November (whatever day of the month that is) will consist in part of the 3% rate with the rest at the 1.5% rate.

    If you close/change the account 1 day before the Anniversary date in November, will you still pay the £5 fee that would have been due the next day? And similarly, would you be paid interest for the 29 days that you had the account open for?

    I'm also just working out the best time to swap account :)
  • bengal-stripe
    bengal-stripe Posts: 3,349 Forumite
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    Dragonfly1 wrote: »
    If you close/change the account 1 day before the Anniversary date in November, will you still pay the £5 fee that would have been due the next day?

    I have no idea - for parts of a month, the bank might charge the account fees pro rata. If you close the account one day before the full month, that would make a fee of £ 4.84.

    You better ask Santander to give you an authoritative answer.
  • Kernel_Sanders
    Kernel_Sanders Posts: 3,617 Forumite
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    bengal-stripe wrote: »
    I have no idea - for parts of a month, the bank might charge the account fees pro rata. If you close the account one day before the full month, that would make a fee of £ 4.84.

    You better ask Santander to give you an authoritative answer.
    I don't think they do because when I downgraded mine when the fee went up from £3 pm, there was no fraction charged.
  • Dragonfly1
    Dragonfly1 Posts: 120 Forumite
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    Kernel_Sanders wrote: »
    I don't think they do because when I downgraded mine when the fee went up from £3 pm, there was no fraction charged.

    So, just to clarify
    - There was no additional part-month fee, and did they still pay out a part-month worth of interest?

    Thanks :)
  • Westie983
    Westie983 Posts: 5,213 Ambassador
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    When I downgraded mine, when it went up to £5, I still paid the full £3 on closure.

    I dont think they pro rata the fee,
    I’m a Forum Ambassador and I support the Forum Team on the Banking & Borrowing, and Reduce Debt & Boost Income boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySaving Expert.
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  • 2010
    2010 Posts: 5,360 Forumite
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    If the interest is calculated daily and the £5 fee is charged no matter when you close your account, wouldn`t the best time be a day or two before the monthy interest day.
  • Nebulous2
    Nebulous2 Posts: 5,116 Forumite
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    I changed to a 123 lite account at the end of October, a day before my payment was due. I received my DD credits as usual but wasn't charged a fee at all. Not even the £1 for lite. A month later I again got my credits and paid £1.

    I didn't have much money in the account but still received about 40p interest at the end of October. I didn't work out if that was pro-rated or not.
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