Santander 1 2 3 Account

susanann_2

I am going to open two Santander 1 2 3 accounts its seems to be the only thing that is paying a bit more on the interest. I will need to fund both of these with £500 a month plus the two direct debits. I know you cannot circulate £500 around accounts in Santander itself like I do with Halifax Rewards but can you fulfil the criteria by sending £500 from another bank or building society or does it have to be from an outside source.

brendon

You can send it from another bank account. I use my Santander account as a "outgoings account", so most payments to me go via another (external) bank account first. Had no problems.

R_P_W

My wife and I both have Santander accounts. Our wages go in here. We then transfer money into a joint 123 account. We get the interest and the cash back every month with no issue

eskbanker

R_P_W wrote: »

My wife and I both have Santander accounts. Our wages go in here. We then transfer money into a joint 123 account. We get the interest and the cash back every month with no issue

...in which case you're lucky then, because their Ts & Cs clearly state that internal transfers don't fulfil the £500 monthly funding requirement!

Fund the account with £500 a month (a minimum balance of £1,000 is required to receive interest). This is not a calendar month, it is the month from the date you opened your account. Interest and transfers from any other Santander accounts do not count towards the monthly funding amount.

grizzly1911

I have 2x 123 and fund them from another bank with no problems. I switch the money back later.

Hoof_Hearted

I opened two accounts today. The £2 will easily be offset by the cashback and the 3% is unbeatable.

innovate

Hoof_Hearted wrote: »

the 3% is unbeatable.

yes it is - - Nationwide FlexDirect. Slightly more laborious if you have a large amount to put in, and not entirely suitable for very large amounts.

Also don't forget Lloyds and BoS Vantage.

Gromitt

Indeed, and if you don't have sufficient DDs to get the £24 account fee back, then BoS and TSB actually beat Santander.

gkerr4

can it be beaten? - what is the threshold balance that one beats the other?

for reference, my 1-2-3 accounts pays £6/month cash back, but charges £2 a month and pays just over £40 a month in interest if kept just above £20k.

I think it could be better with more DD's in place - we only have council tax, electricity, broadband and one mobile phone - if you had gas, skyTV or virgin, more expensive broadband (ours is £7.50) and more than one mobile phone you could do much better on the cashhback front - this could take the net payments to close to £50 a month / £600 year - that takes some beating surely?

innovate

gkerr4 wrote: »

.... this could take the net payments to close to £50 a month / £600 year - that takes some beating surely?

You can only get £600 a year if you are a non-tax payer.

You can get, as has been mentioned before, "clean" 5% and 3% AER at Nationwide, Lloyds and BoS. Nobody disputes that the 123 is a great account (well, at least I don't because I have had at least one since they first came out). But no point getting carried away with them.

gkerr4

thats paid with tax taken off - it's in my wife's name who is a std rate payer - so the example above is actually what we receive.