Santander123 As A Savings Account?

lazer

If you have the inclination and the patience here is the way my savings are set up to maximise interest (or at least will be set up when i have the money to do so)

1 by nationwide current Account - 5% Interest (For 12 months) for £2,500
(Not sure of the requirements as use this as my main account so has DD's etc)
2 by TSB current Accounts (@ £2,000 in each) - 5% interest (and not a bonus 12 month rate) - think its £500 a month funding requirement - and no requirement for DD's
Santander 123 account for anything over this

And finally a first direct regular saver @ 6% at 300 a month which is fed from the santander 123 account.

On a Balance of of £13,100 this would give the following interest
Nationwide - £100 (net)
TSB - £160 (net)
First Direct - £93 (net)
Santander - on the £3000 which stays in the account from start to end of year - £72 (net)
Santander - on the £3,600 which is being drip fed to first direct - £46.80 (net)

So that is a total interest of £471.80 (Equivalent of 4.5% Gross Interest Rate Average)

If you have less the £13,100 this will result in lower rates as the Santander account will drop below £3,000, so therefore interest rates will be lower.

If you have more - put it in Sandtander 123 account up to the £20,000 limit and you will get 3% on this all as well.

Hopefully the DD's set up om the 123 account should pay enough cashback to cover the £2 a month fee

And if you want to make another £60 - open a halifax reward account to which pays £5 a month (subject to minumum funding requirements, DD's etc).

On payday each month, I manually transfer the same £1,000 between all the current accounts to meet the funding requirements.

stingy1

td_007 wrote: »

From website: One single or one joint 123 Current Account (or one of each) per person only

http://www.santander.co.uk/csgs/Satellite?canal=CABBEYCOM&cid=1237892266671&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_ViewSelector

If you have a sole account you can also open another joint account if that is an option for you

so just to be clear one person (sole) can open an 123 account and a new option to create a joint account (with someone else) will appear?

So its just a question to find a 2nd person then and one can have 2x123 accounts ?

stingy1

Archi_Bald wrote: »

Is that what they said? Wonder what they want to verify? Have you been asked to provide additional ID?

Yes tesco said it will take 2 weeks for them to run some verification check, and then the options to enter in the direct debit details or how you wish to pay will occur.

I can't recall i.d check though but they very well could still.

hopefully it happens sooner since 2 weeks is a bit long I think.

badger09

stingy1 wrote: »

So its just a question to find a 2nd person then and one can have 2x123 accounts ?

As in a random stranger you met in the pub? :eek:

A family member or friend with debts or a poor credit history? :eek:

By opening a joint account, you become financially linked to that '2nd person' so think carefully before you go down that route just to open a 2nd Santander 123 (or any other joint) account.

bigadaj

badger09 wrote: »

As in a random stranger you met in the pub? :eek:

A family member or friend with debts or a poor credit history? :eek:

By opening a joint account, you become financially linked to that '2nd person' so think carefully before you go down that route just to open a 2nd Santander 123 (or any other joint) account.

I think cloning would be far safer.

badger09

bigadaj wrote: »

I think cloning would be far safer.

Depends on the original specimen being cloned :rotfl:

stingy1

badger09 wrote: »

As in a random stranger you met in the pub? :eek:

A family member or friend with debts or a poor credit history? :eek:

By opening a joint account, you become financially linked to that '2nd person' so think carefully before you go down that route just to open a 2nd Santander 123 (or any other joint) account.

naturally a family member with good credit

stingy1

Bromley86 wrote: »

I had 3 sole & 1 joint when they brought that rule out and still managed to open another sole without any trouble. They may have tightened up now, but it's worth getting one set up and then trying for another.

Also, sure it's been mentioned, but don't forget to get up 2 different direct debits to 2 different accounts. I set up 2 different DD from the same Tesco savings a/c and it only counted as 1 (as only 1 DD mandate) --> no interest.

thanks was not aware of this otherwise I would have used one card to do the debit with tescos and it would not have counted !

DLC2013

Yes i noticed Santander now stipulate 1 single account and 1 joint account. Forgive my ignorance but when was this rule introduced, fairly recently I assume? Thankfully i managed to open 2 single 123 accounts. So far so good, i would recommend it to those considering it but who knows how long it will remain at 3% for

YorkshireBoy

DLC2013 wrote: »

who knows how long it will remain at 3% for

More chance of them cutting the max balance (from £20K to, say, £10K) and/or pulling the account altogether for new customers, than lowering the interest rate in my opinion.