Santander 123 Interest Date

Hominu

Can't seem to find this on Santander's site.

When do Santander pay interest into your 123 account?

Is it the date the account opened or a specific date in the month?

Likewise with the £2 fee and cash back.

I tried ringing Santander but all they keep saying is "It's paid every month", so I say "Yes, but WHEN in the month", "Every month sir". Sheesh.

gallygirl

Mine is paid on the 2nd. But don't know what date I opened the account so not much help really .

ETA: Ok, so I opened account on 28th, but maybe 2nd was the date it was actioned?

oldfella

my cashback is paid on the day I opened, interest on the following day

Archi_Bald

it's all happening on the monthiversary (of your account opening), or may be the next working day.

I can't find anything that says exactly that in their bumph, but it does work like that (I have had a 123 for over 2 years).

If you search this Santander document for "date", it more or less says what I said above.

MoneySaving_Newbie_2

Sorry to be such a newbie, but I have a related question. I'm considering closing my Halifax Current Account and opening a Santander 123 C/A to take its place. I will have my income paid into the account and my phone bill and full Nationwide C/C bill paid out of it by DD.

If I were to open it with £3,000 and not touch those funds, would I be paid 3% on the total amount each month, i.e. £90 p/m?

oldfella

its about £7.45 per month on £3k - its 3% per annum. As its paid monthly the interest rate is a bit less than 3%

badger09

oldfella wrote: »

its about £7.45 per month on £3k - its 3% per annum. As its paid monthly the interest rate is a bit less than 3%

£6 per month after tax

MoneySaving_Newbie_2

oldfella wrote: »

its about £7.45 per month on £3k - its 3% per annum. As its paid monthly the interest rate is a bit less than 3%

Just realised as you posted. Thanks for the help.

Gromitt

Don't forget the £2/month charge

A £70 mobile phone bill should be sufficient to pay that using cash back however.

MoneySaving_Newbie_2

One last question (can't promise): If for one full month I have £10,000 in the account and get paid interest of £20 and following that payment I withdraw £7,000, would there be any clawbacks on the interest in the next month-or-so, or would I continue getting £6 p/m thereafter -- ignoring the £2 for now.

Gromitt

Interest is calculated every day and paid once per month. The interest you are given depends on the funds that in your account at the close of business each day.

So if you put in 10K for a whole month I'd expect about 10K*0.03/12 = £25. For half a month, half that.

Minus your appropriate tax band of course (so * 0.80, so £20 instead of £25 for basic rate)