Is the Santander 123 Account Worth it?

JimmyTheWig

IrishGypsy wrote: »

Ultimately I could take £500 cash out over the counter and immediately pay it back in once a month to circumvent the funding requirement (as I don't have an external bank account elsewhere). But if I can do it automatically internally, then I will until that's changed. Saves me time.

As you don't have another bank account (didn't even think about that possibility!) then I'm not surprised that you're using this approach.

I'm not saying people should follow suit, just pointing out that it's not, currently, factually correct that funding has to come from an external source, that's all.

I see what you are saying, but it is factually correct that, according to the rules the funding has to come from an external source.


Personally, if I were you, I'd get another bank account elsewhere anyway. We've heard various problems with one bank or another going down for a few days due to technical problems. I wouldn't put all my eggs in one basket.

chris1

innovate wrote: »

From the 2.88%, tax will be due, depending on the account holder's tax status.

If you're a basic rate taxpayer and have 20K to invest, you will get the equivalent of a 2.85 gross savings account, after taking the charge into acount and ignoring cashback.

If you have 10K the equivalent rate is 2.7% gross, 5K is 2.4% and 3K is 2% gross.

HTH

innovate

IrishGypsy wrote: »

They may well do. But seeing as they haven't over the last 4+ years,

The 123 account has only been available for less than a year.

IrishGypsy

innovate wrote: »

The 123 account has only been available for less than a year.

The Zero account had similar funding criteria and was supposedly checked to ensure customers remained eligible for it. I'd never heard of peoples Zero accounts being downgraded in all the time I worked there. I don't pay £1k in per month (never have done), but my Zero account remains as is, years later.

innovate

IrishGypsy wrote: »

....in all the time I worked there

Your employer would be mightily pleased (not) if they knew you are encouraging people on an Internet forum to break their T&Cs.

As I said before, it is un-smart at best.

BugsyBrowne

Allah is all for cutting people's hands off for stealing and sentencing homosexuals to death yet he doesn't like savings accounts,maybe he's not happy with todays interest rates.

IrishGypsy

innovate wrote: »

Your employer would be mightily pleased (not) if they knew you are encouraging people on an Internet forum to break their T&Cs.

As I said before, it is un-smart at best.

"Worked". Thus; past tense.

oxters

According to the "help desk" you don't need to switch c/a's you can just cherry pick the cash back ones as long as you fund the a/c as required.
Was also told the cash back is for life of the a/c and so is the 3% on up to £20k

innovate

oxters wrote: »

According to the "help desk" you don't need to switch c/a's you can just cherry pick the cash back ones as long as you fund the a/c as required.
Was also told the cash back is for life of the a/c and so is the 3% on up to £20k

There was never any requirement for switching to get the 123 (even if badly informed source claimed there was).

As to "cashback and 3% is for life": whose life? This is ridiculous information.

oxters

innovate wrote: »

There was never any requirement for switching to get the 123 (even if badly informed source claimed there was).

As to "cashback and 3% is for life": whose life? This is ridiculous information.

Er, I said the life of the a/c.

And the MSE main site says
Quote The rub is, you need to operate it like a normal current account. This means switching to it, and paying in £500/month (equivalent to a pre-tax annual salary of at least £6,000). There is a £2/mth fee, though it also pays a nice 1%-3% cashback on bills such as council tax, phones and energy, which should easily cover that - many make £10/mth or more on top.


See http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#bestbuys

So perhaps not such ridiculous information?