Multiple current accounts with the same bank

Nobbi_2

I currently have a 123 account with Santander and have the max £20k in there to attract the 3% interest rate. Can anybody tell me if it is permissible to have multiple 123 accounts, depositing a further 20k in each thus attracting the 3% again. I realise that I would need to set up 2 direct debits on each account and pay in £500 a month to qualify. Many thanks:question:

eskbanker

Yes, this is possible, a number of people on here, including yours truly, have done this.

innovate

To be picky, you won't get 3%, but 2.8-something, unless you manage to move some cashback-attracting DDs to your second account. Still beats the living daylight out of 'savings' accounts.

matttye

innovate wrote: »

To be picky, you won't get 3%, but 2.8-something, unless you manage to move some cashback-attracting DDs to your second account. Still beats the living daylight out of 'savings' accounts.

Is it not 2.4% after tax? 3%*0.8 = 2.4%. Unless you were referring to something else.

Newcastle BS offers an ISA that pays 3% if you pay in regularly and don't make withdrawals. The only penalty for making a withdrawal is that you'll get paid 2% instead of 3% that month.

http://www.moneysavingexpert.com/savings/best-cash-isa#regularISA

Gavlaar

Santander have told me that you can only have two 1-2-3 accounts open at any one time

innovate

matttye wrote: »

Is it not 2.4% after tax? 3%*0.8 = 2.4%. Unless you were referring to something else.

You pay £2/mth = £24/year for the account. Thus any interest payments you get will be reduced by £24. Makes it 2.88% or thereabouts before tax.

Gavlaar wrote: »

Santander have told me that you can only have two 1-2-3 accounts open at any one time

Sigh. The usual conflicting statements from different branch folks. I wouldn't worry if you need more. Just apply.

matttye

innovate wrote: »

You pay £2/mth = £24/year for the account. Thus any interest payments you get will be reduced by £24. Makes it 2.88% or thereabouts before tax.

Ah got ya, thanks!

Nobbi_2

That's great news.To fund the 123 accounts each month I guess I will need to open a feeding account. I thought maybe a Lloyds TSB Avantage account as this also attracts 3% (although on only 5K) . The only downside on this is that £1000 a month has to be paid in.
My thinking is this:

Open first 123 account with 20k funded with monthly salary
Open second 123 account with 21k
Open Avantage account with 5K

Set-up Monthly DD transferring 1K from second 123 account to Avantage account at beginning of month

Set-up Monthly Direct Debit transferring the 1k back to 123 account at mid month
Does this seem feasible?

innovate

Yes, that's the sort of thing to do. Don't forget each 123 also wants 2 DDs but that's relatively easy to achieve.

ffacoffipawb

innovate wrote: »

You pay £2/mth = £24/year for the account. Thus any interest payments you get will be reduced by £24. Makes it 2.88% or thereabouts before tax.

Cashback can increase it beyond 3% though.

innovate

ffacoffipawb wrote: »

Cashback can increase it beyond 3% though.

True.

That's just what my cashbacks do, on my 1st 123. Haven't bothered to move cashback DDs to other 123s since it's the same amount of money for me at the end of the day. Instead, I set up up a couple of new DDs for the secondary accounts.