Closing 123 account timing

arsenalboy
arsenalboy Posts: 448 Forumite
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in Savings & investments
I want to close a 123 a/c from 1st Nov. My account date is the 16th of the month. What date should I close it to maximise interest but avoid paying an unnecessary £5 account charge?
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  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
    Where are you putting your £20k once your 123 account is closed?

    Cheers fj
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    15th November, according to my interpretation of your account T&Cs. Whether you should close it on 31st October instead will depend on your answer to the question posed in post #2 above.

    Does this tally with your own interpretation of your account T&Cs?
  • bristolleedsfan
    bristolleedsfan Posts: 12,089 Forumite
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    edited 8 October 2016 at 12:25AM
    arsenalboy wrote: »
    I want to close a 123 a/c from 1st Nov. My account date is the 16th of the month. What date should I close it to maximise interest but avoid paying an unnecessary £5 account charge?

    My 5.00 monthly fee is due on 28th October, I will arrange for full switch out with account closure to be finalised a couple of days before that date to avoid 5.00 fee.
  • arsenalboy
    arsenalboy Posts: 448 Forumite
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    bristolleedsfan wrote: »
    My 5.00 monthly fee is due on 28th October, I will arrange for full switch out with account closure to be finalised a couple of days before that date to avoid 5.00 fee

    My thoughts are the same, BUT, I worry that closing it a couple of days early will mean I fall foul of having 2 dd's in place and therefore no interest will be paid?
  • arsenalboy
    arsenalboy Posts: 448 Forumite
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    YorkshireBoy wrote: »
    15th November, according to my interpretation of your account T&Cs. Whether you should close it on 31st October instead will depend on your answer to the question posed in post #2 above.

    Does this tally with your own interpretation of your account T&Cs?

    As stated in previous reply my concern is over timing of having 2 dd's in place.
    I am currently in dispute with them as they denied me interest for switching dd's around mid month. I had 2 in place at beginning and 2 in place at end of month but there were 2 days in the middle of the month when I only had 1 in place.
    They seem to be really hard with t&c.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    arsenalboy wrote: »
    My thoughts are the same, BUT, I worry that closing it a couple of days early will mean I fall foul of having 2 dd's in place and therefore no interest will be paid?
    I think you're worrying unnecessarily, but have you considered switching it away (using the CASS) to another account rather than simply closing it? That way you're guaranteed to have two DDs in place right up to the point it's switched.
  • arsenalboy
    arsenalboy Posts: 448 Forumite
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    bigfreddiel wrote: »
    Where are you putting your £20k once your 123 account is closed?

    Cheers fj

    Like most people I am chasing rates down. Most of the money is in my wifes name for tax purposes as I pay 40%. I will be putting the money in 3% giving 1.8% net which is better than the 1.5%. Every other possible option is taken.
  • arsenalboy
    arsenalboy Posts: 448 Forumite
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    edited 7 October 2016 at 10:23PM
    YorkshireBoy wrote: »
    I think you're worrying unnecessarily, but have you considered switching it away (using the CASS) to another account rather than simply closing it? That way you're guaranteed to have two DDs in place right up to the point it's switched.

    I might be worrying unnecessarily but if you read a thread I created some days back you will understand why

    http://forums.moneysavingexpert.com/showthread.php?t=5532026
  • smjxm09
    smjxm09 Posts: 663 Forumite
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    edited 8 October 2016 at 7:03AM
    Looks like I might have also been caught out. I have just converted a 123 account into a standard account. In September I had 4 direct debits pay out but I moved them on the 23rd to another account so instead of £50 interest they have for some reason paid £2.88. I think a phone call is in order today as the T&C's say 2 active DD but nothing to say the DD's have to be in place for the whole period. By the very fact that 4 DD's are shown being made in September I thought that would be enough.

    At the very least their terms and conditions are not clear as to what is actually an active DD. Is it a payment made within that month or a continuous mandate for a direct debit payment that has sat there for the whole month? It seems that Santander think it is a direct debit mandate for a future payment but they don't say that in their T&C's
  • evergreen
    evergreen Posts: 396 Forumite
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    arsenalboy wrote: »
    Like most people I am chasing rates down. Most of the money is in my wifes name for tax purposes as I pay 40%. I will be putting the money in 3% giving 1.8% net which is better than the 1.5%. Every other possible option is taken.

    Where have you found a rate of 3% if you don't mind me asking?
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