Santander 123 Can you run it with a zero balance?

KTF

I have recently switched from Nationwide to the Santander 123 account and wondered if you can run it with a 'zero' balance.

For example, with Nationwide if you go into the red at the start of the banking day but are in credit by the end then this wont incur any fees, etc. Handy if you want to maximise interest by keeping the funds in a savings account as Nationwide dont charge any interest on positive balances.

I was just wondering if Santander had a similar policy?

ponbeam

As long as its in the green by 4pm that day you will be fine

zerog

The 123 account pays interest though, so what's the point? And if you just want to earn interest, the money just needs to be in Santander from about 2010 to 2030 on Monday to Saturday evenings. It can be in another bank for the remaining 1420 minutes of the day.

innovate

zerog wrote: »

The 123 account pays interest though, so what's the point? And if you just want to earn interest, the money just needs to be in Santander from about 2010 to 2030 on Monday to Saturday evenings. It can be in another bank for the remaining 1420 minutes of the day.

Does this mean I get no interest in my 123 on Sundays?

KTF

zerog wrote: »

The 123 account pays interest though, so what's the point? And if you just want to earn interest, the money just needs to be in Santander from about 2010 to 2030 on Monday to Saturday evenings. It can be in another bank for the remaining 1420 minutes of the day.

The point is that my savings are in another account that currently earns higher interest than the in credit interest paid on the Santander 123 account.

When that rate drops in June then I will move it to the 123 account.

mrsxfile

Remember also that there is no interest paid on the 123 account if there is less than £1000 in it. Balances of over £3000 attract an interest rate of 3%.

I also have both a Nationwide (for about 20 ears now) and a 123 account. My salary goes into Nationwide and I transfer what I need to into the 123 account. I need to keep my Nationwide one for the Flexclusive saver and Flexclusive ISA. My mortgage is with Santander and paid through my 123 account for the cashback. I also recently transferred all direct debits that attract cashback from Nationwide to 123.

Both accounts have their merits so I'm going to run with them both

KTF

Thats what I have done with the 123.

Salary into Nationwide for the 750 funding to meet the 'flexclusives' requirements, then money moved over to Santander who have all the direct debits, etc now to meet the cashback criteria.

Cardew

mrsxfile wrote: »

I need to keep my Nationwide one for the Flexclusive saver and Flexclusive ISA.

Are these accounts from some while back, and retain their 'high' interest rates?

Along with all other Nationwide savings products, their present interest rates are very poor.

innovate

Yes they had special rates (e.g. 4.25% on the ISA) but these are for limited duration, as you would expect (e.g. ISA runs out in October 2013). Still, marvellous deals if you got in at the right time.

shays_mum

Was told recently you def needed £500 balance in the account, not sure if that's every month, or just in total.

KTF

shays_mum wrote: »

Was told recently you def needed £500 balance in the account, not sure if that's every month, or just in total.

You need to pay in £500 a month from an external source.

It doesnt have to stay in there.