Santander 123 Account DD Question

surreysaver

innovate wrote: »

It's been reported that it is dead easy to migrate - just call them or pp into a bank. You keep your account numbers and SOs, DDs

I concur with this. Took a bit of hunting to find where on the website to transfer my account (I was looking in my online banking, but i think you have to do it from the main website). Got an email a couple of days later saying it had all gone through. Been with Santander nee Abbey for years, and always had the opinion of not touching things and leaving stuff alone because of their habit of mucking things up. But they seem to be attempting to improve their service now, so am giving them a chance. Hopefully I will not be disappointed.

innovate

innovate wrote: »

just call them or pp into a bank

Did I really write this!?! Must change my keyboard, lol.

I meant "just call them or pop into a Branch"

surreysaver

innovate wrote: »

"just call them or pop into a Branch"

I prefer to do things over the internet, as it is the someone you see in the branch or call on the phone that is usually the weak link and screws things up.

I believe even when you deal with Santander, there is still a person on the other end of the internet, but I just think it is safer!

ffacoffipawb

psychic_teabag wrote: »

On 20k, the £2 monthly fee effectively reduces the rate to 2.85% or so (assuming basic rate tax) if you don't get cashback, so it still beats other savings rates at the moment.

grumbler wrote: »

How does this depend on the assumption?

£20,000 yields £600 gross interest.

Non Taxpayer
£600 - £24 = £576 which is 2.88% gross

Basic Rate Taxpayer
£600 * 0.80 - £24 = £456 = 2.28% net or 2.85% gross

40% taxpayer
£600 * 0.60 - £24 = £336 = 1.68% net or 2.80% gross

EDIT: The gross equivalent is different due to the monthly fee which does not vary by tax rate.

Gromitt

Ah, now I understand. You were subtracting the tax before deducting the fee, hence the effective gross rate is ever so slightly different depending on your tax.

psychic_teabag

A quicker way to get the same numbers is to just to scale the fee up by the tax rate. (Rather than scaling down the interest, subtracting the fee, then scaling back up again)

Non taxpayer : 24 / 20000 = 0.12%
Basic rate taxpayer : £24 / 0.8 = 30 ; 30/20000 = 0.15%
Higher rate : £24 / 0.6 = £40 ; 40 / 20000 = 0.2%

In each case, then subtract the percentage from 3% to get the effective gross rate.

EDIT: and of course you can change the 20000 denominator to calculate the effective cost of the fee for a lower balance.

innovate

I'd just make sure I get at least £2 cashback a month, thus keeping my gross rate at 3%, at least. As long as my balance never goes below £3K, and as long as I pay in £500 a month, that is.

Gromitt

Do you have a flow chart of your accounts to ensure you fund them all every month, innovate?

Something like TSB 1->TSB 2->TSB 3->Halifax 1->Halifax 2->BOS 1->BOS 2->BOS 3->Santander 1->...

innovate

lol, something like that, yes