Santander 123 Account

CUPCAKESUE

Thank you Macman. Will the interest be paid on 16th Oct which will be the full calender month.
Cheers

Ifts

CUPCAKESUE wrote: »

Will the interest be paid on 16th Oct which will be the full calender month.
Cheers

It should be paid around the 16th of the month, maybe credited on the 17th/18th (account fee and cashback should also be on the same date as the interest payment).

One of my 123 accounts was opened on the 6th of the month, Ive just logged in to this account to check the online statement and most months the interest/cashback is paid and account fee debited on the 7th of the month, occasionally shows as paid/debited on the 8th of the month.

barbara22

Finally got my new 123 account sorted out - it became 'live' on 25th November, just ONE day later than the cashback terms allowed for so that was £45 lost immediately, great.


But it did prompt a thought - I opened an easy access cash ISA with Santander just after the end of last financial year 2012. Should I wait until the full year's term is completed on that to get the interest, or transfer it into the 123 account now?


The interest payable from cash in the current account is much better than any ISA! And as I'm retired with only the State Pension I won't be liable to pay tax on any interest earned in it.


Calling all experts! Or people who've had the same thought and transferred from an ISA into a Santander 123 current account?

nickcc

We have a 123 joint account and have just opened a 123 account in my Wife's name who is a non taxpayer. We had to open a joint account (Lloyd's) so as to be able to fund my Wife's 123 account. We now have my Company pension paid into the joint 123 account and my Wife's and my state pensions paid into the Lloyd's account which is then transferred into her 123 account, we now get the max interest on our joint 123 account (taxed) and max interest (untaxed) on my Wife's 123 account. The only thing we had to do to ensure my Wife's 123 account received the max interest was to arrange for two of our direct debits to be moved from our 123 joint account to her 123 account. We now manage all of our accounts on line which makes keeping all the balls in the air at the same time simple

eskbanker

barbara22 wrote: »

But it did prompt a thought - I opened an easy access cash ISA with Santander just after the end of last financial year 2012. Should I wait until the full year's term is completed on that to get the interest, or transfer it into the 123 account now?

When you say the full year's term, is there any particular reason to keep it for a year, i.e. are there any bonuses payable for doing so, or early withdrawal penalties? If it's just a standard instant access account with no strings then you don't need to wait until the usual interest payment date, if you close it before then you'll get whatever interest has been earned up to the date of closure on a pro rata basis, so if you're doing this in order to get better net interest then sooner rather than later make sense....

Since cash ISA rates are generally poorer than decent interest-paying current accounts, you're far from alone in considering this, see also this thread about the same thing, among several others. If you're below the income tax threshold then it makes even more sense to go down the 123 route, especially if you've retired.

barbara22

eskbanker wrote: »

When you say the full year's term, is there any particular reason to keep it for a year, i.e. are there any bonuses payable for doing so, or early withdrawal penalties? If it's just a standard instant access account with no strings then you don't need to wait until the usual interest payment date, if you close it before then you'll get whatever interest has been earned up to the date of closure on a pro rata basis, so if you're doing this in order to get better net interest then sooner rather than later make sense....

Since cash ISA rates are generally poorer than decent interest-paying current accounts, you're far from alone in considering this, see also this thread about the same thing, among several others. If you're below the income tax threshold then it makes even more sense to go down the 123 route, especially if you've retired.

Thank YOU! As far as I know there is no special reason to let it go to term, it's already earned some interest anyway.

So I'm going to transfer it online right now, and check tomorrow that it's been actioned - in fact I'll ring them to make sure, it'll be worth it.

innovate

If your ISA is indeed instant access, you will be able to see online whether your transfer worked. It should be instant. Once the money is in your 123, it will show your ISA balance as zero. No need to ring them to confirm.

Try it with a small amount first if this reassures you

JustAnotherSaver

Question regarding the 3% on the following (in bold):

Cashback on household bills:
1% on water, council tax bills and Santander mortgage payments1
2% on gas and electricity bills
3% on mobile phone, home phone, broadband and paid-for TV packages
+ Up to 3% AER (variable) interest on your balance

To get cashback on broadband, does it have to be part of some bundle, such as a broadband & phone, or a broadband & TV deal, or does it apply also to just simply broadband on its own?


If it applies to it being on its own then i'll move it accross. If it has to be part of some deal then i'll leave it as a Halifax qualifying DD for the £5/month.

molerat

JustAnotherSaver wrote: »

Question regarding the 3% on the following (in bold):

To get cashback on broadband, does it have to be part of some bundle, such as a broadband & phone, or a broadband & TV deal, or does it apply also to just simply broadband on its own?


If it applies to it being on its own then i'll move it accross. If it has to be part of some deal then i'll leave it as a Halifax qualifying DD for the £5/month.

It is paid for any phone / broadband / tv, packaged or stand alone

ColdIron

See their supplier search
http://www.santander-products.co.uk/banking/calculator/cashbacksearch.html