Another Santander 123 question

Stompa

I'm confused! I've just opened one of these, and yesterday set up a couple of DD's (Tesco & Paypal), both of which are showing up on my account today (though I don't ever intend using either of them).

If I deposit £20k now, will I start earning 3% on it immediately? I had assumed the answer would be yes, but I'm a little less certain after reading this thread!

macman

DD's are normally set up by request of the payee (with your authorisation). How did you set them up yourself? You can normally only set up Standing Orders from within the account.
Subject to that, and making the required £500 monthly deposit in, you should earn interest from day one.

ColdIron

Stompa wrote: »

If I deposit £20k now, will I start earning 3% on it immediately? I had assumed the answer would be yes, but I'm a little less certain after reading this thread!

Basically yes

The way it works, as explained to me by one of the clued up support guys, is:-

On the monthly anniversary of opening the account the system checks to see if you currently have 2 DDs setup (along with the other pre-reqs of minimum balance and £500 funding etc). If you haven't then no interest. If you have then interest is calculated daily for the period.

As an aside this means that if you had transferred the money before the DDs were setup you would still get interest on it for that month

Archi_Bald

macman wrote: »

DD's are normally set up by request of the payee (with your authorisation). How did you set them up yourself?

You can set up DDs for a whole lot of accounts, such as Tesco Savings and Paypal, yourself. You are the payee for these sorts of accounts.

Stompa

macman wrote: »

DD's are normally set up by request of the payee (with your authorisation). How did you set them up yourself?

Both Tesco and Paypal allow you to set up a DD online to enable them to pull money (in this case from Santander 123) into those accounts. See here for more:

https://forums.moneysavingexpert.com/discussion/4168667

hennerz

What is the interest if your account goes above £20k? I was planning on paying in the £500, then sending it out again three days later, but for this time the balance will be £20,500.

Also, if I have two accounts, do I need 4 direct debits set up? Two for each account? Or will 2 overall be fine?

eskbanker

hennerz wrote: »

What is the interest if your account goes above £20k?

No interest is paid on the surplus above £20K.

hennerz wrote: »

Also, if I have two accounts, do I need 4 direct debits set up? Two for each account? Or will 2 overall be fine?

You need 2 per account, so 4 overall.

hennerz

Thanks, I just set up a direct debit with both WaterAid and ChristianAid but they aren't first charged until November 15th so I'm a little worried they won't show up instantly on my account.

mandu1

Hi
Opened 123 and set up 2 dd's on 29/8. dd's did not debit until 2/10 and did not receive any interest on 20k deposited in September. Also no £2 fee taken out by Santander. A little confused I contacted Santander. Received letter reply today saying the reason no interest was paid was because although the dd's were showing on my account no money had been debited from them during September. Nothing said in letter about them not taking their £2 fee.
This is strange because my wife recently did exactly the same and she did receive interest on the first month even though the dd's did not debit until the following month. The month, by the way, is not a calendar month but a month from the account opening day.
I think Santander are confused about what "set up" refers to!!:cool:

Stompa

What do they regard as 'account opening day'? The day they send the "Welcome to your new 123 Current Account" email? The day you applied?