Santander 3% 20k savings current account

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Chris5
Chris5 Posts: 41 Forumite
in Budgeting & bank accounts
Hello. I'm thinking of opening one of these accounts and making full use of the 3% on20k savings. I have a few questions...

It says you need a minimum £500 deposit each month. Does this have to be your salary or can it simply be a standing order from another account which I can then transfer back out a few days later?

Is the interest paid monthly or annually or do I have the choice?

I can switch 2 DD's no problem.

Thanks in advance.

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  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    Chris5 wrote: »
    It says you need a minimum £500 deposit each month. Does this have to be your salary or can it simply be a standing order from another account which I can then transfer back out a few days later?
    Does "it say" it has to be salary? That would exclude all those in retirement, would it not?
    Is the interest paid monthly or annually or do I have the choice?
    That question is answered just two clicks away from their homepage, on both the "at a glance" and "full details" tabs when viewing the 1-2-3 account particulars...so you don't even have to delve deep into the T&Cs.

    It's even one of their FAQs.
  • Chris5
    Chris5 Posts: 41 Forumite
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    YorkshireBoy wrote: »
    Does "it say" it has to be salary? That would exclude all those in retirement, would it not?That question is answered just two clicks away from their homepage, on both the "at a glance" and "full details" tabs when viewing the 1-2-3 account particulars...so you don't even have to delve deep into the T&Cs.

    It's even one of their FAQs.

    Thanks for your prompt reply. I was just reading the account summary in a tweet by :money: and it didn't mention these things.
  • Harveys_2
    Harveys_2 Posts: 217 Forumite
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    Chris5 wrote: »
    Hello. I'm thinking of opening one of these accounts and making full use of the 3% on20k savings. I have a few questions...

    It says you need a minimum £500 deposit each month. Does this have to be your salary or can it simply be a standing order from another account which I can then transfer back out a few days later?

    Is the interest paid monthly or annually or do I have the choice?

    I can switch 2 DD's no problem.

    Thanks in advance.

    Yes can be a standing order from another bank account
    You can transfer it back out the same day
    Interest is monthly on the date you opened the account
  • Chris5
    Chris5 Posts: 41 Forumite
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    Harveys wrote: »
    Yes can be a standing order from another bank account
    You can transfer it back out the same day
    Interest is monthly on the date you opened the account

    Thank you.

    Says Interest is monthly but you need to have £1000 in to receive the interest
    Fund the account with £500 a month (a minimum balance of £1,000 is required to receive interest).

    So should I transfer in £1000/month to receive the interest?

    Thanks
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    Chris5 wrote: »
    So should I transfer in £1000/month to receive the interest?
    No. To receive any interest and/or cashback you need to pay £500 a month in (plus meet the other pre-requisites).

    How much interest you earn/accrue each day will depend on that days closing balance. If it's £1-2K you'll earn at the rate of 1%, if it's £2-3K it's 2%. And if you've over £3K it's 3%. All earned/accrued daily and, as you now know, paid monthly.
  • mgdavid
    mgdavid Posts: 6,705 Forumite
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    To save you falling foul of some rule or term that you later claim you didn't know about, I do strongly suggest you actually go to the website and read the Ts & Cs rather than rely on some bloke on the internet, even if said bloke is someone writing for MSE.
    The questions that get the best answers are the questions that give most detail....
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,594 Ambassador
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    You can transfer in from another bank but not another Santander account. You can then transfer it out again. The interest is paid monthly and there is a £2 monthly charge and cashback on certain direct debits - Santander mortgage, council tax, water, gas and electric, phone and tv packages.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment 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 MoneySavingExpert.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    enthusiasticsaver wrote: »
    You can transfer in from another bank but not another Santander account.
    .
    The only limitation is that the transfer must not come from a Santander account in your name.
  • Paul_1977
    Paul_1977 Posts: 992 Forumite
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    your get about £50 a month I think which is not bad.
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