Santander 123 interest query

weebit

Hi, I'm hoping someone can help me out, the Santander website is a bit vague on this question.

I've just opened a Santander 123 account for all my monthly bills to come out of in a new house-share. it will be funded by myself and my 2 friends each month to pay the rent and all household bills etc, and will probably have about £2000 a month going in and out.

I know i can get interest on balances of over £1000, but does the account need to be in credit by £1000 for the entire month in order to earn the interest? Or if it drops below £1000 at any point, do we forfeit interest? E.g, we pay pay in our monthly money and the balance goes to £1900 (for arguements sake!). A week or so later and the rent is paid (apx £1300). This will drop the balance below the £1000, but we had a £1000+ balance for 7 days. Would we earn 7 days interest at 1% AER?

Thanks!

innovate

If you meet the pre-reqs in your statement month (which is unlikely to be the calendar month), you will get interest for every day your balance is above £999.99 (but you won't get interest on any balance over £20,000) in that month

MarkFromCornwall

Yes, it's calculated daily, so you don't lose all the interest if your account drops below £1000 some of the time.