Santander 123 Accounts Only Two Per Person

G_M

Anyone good at maths?

£20K in a 123 earning 3% gross, with a monthly fee and no extra payments for cashback.

What is the net interest earned?

bsms1147

2.88% for non-taxpayers
2.28% at 20% tax

blinko

if you ignore the £2 a month fee

net per year is 2.4%

Gromitt

and using the "Teach them to fish" principle:

20000 * 0.03 = £600
-£24 = £576
100/20000*576 = 2.88%

Basic rate tax:
20000 * 0.03 = £600
Minus 20% tax 600*0.80 = £480
-£24 = £456
100/20000*456 = 2.28%

G_M

blinko wrote: »

if you ignore the £2 a month fee

net per year is 2.4%

I'll agree to ignore it if Santander agree to ignore it!

Thanks folks. Consider me a fish in the net.

Tagliatony

Hi useful site - I opened 123 accounts on based the info here, many thanks.
However of the five (plus a joint) I have, I've been paid interest only on the first two I opened? Has any one else been limited to interest on just two?
Or do they pay interest at different time in the month depending on when the account was opened?

Tagliatony

I'll answer my own question after speaking to someone on customer service that 'thought' you didnt get paid until the month after it's funded. After asking whether she could find out , rather than guess - she came back with 'assuming qualifying transactions happen it's paid at the same time of the month as the date of opening' - so will vary in each account unless opened on the same date.

That clarifies it for me as the last 3 are 4 days after the first 2.
Thing that was worrying me is the first transaction on these wetre the 24 June which was the cut off date for 2 acs max.

Fingers crossed it'll go in, in a couple of days.:)

Tagliatony

innovate wrote: »

why would you have 6 when the FSCS limit is £85K? 4 is plenty methinks, unless you want to gamble with your money

You'd need five, not four, to get the max interest on £85k.

ColdIron

Tagliatony
The 123 account doesn't work on a calendar month, rather it uses a cycle based on the date that you opened each account or monthiversary. So they pay out on the day after your monthiversary as long as you -

a) Pay in £500
b) Pay the £2 fee
c) Have 2 direct debits 'set up' (you don't need to wait until they pay a bill)
d) Have a minimum balance

Archi_Bald

Tagliatony wrote: »

You'd need five, not four, to get the max interest on £85k.

Anything above £85K isn't guaranteed, so I am not sure how your five would work. Care to lay out the details?