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Santander 123 account with 2 direct debits

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Just looking for advice on this as I have 20k approx in savings and for me it appears a complete no brainer to open this account with 3% interest. I am not concerned about cashback and know it costs £2.00 a month to operate.

My only issue is the 2 direct debits I need to set up as believe it or not I don't have any. I pay my car insurance in one full go and use PAYG for a mobile phone. Does anyone know if I can just for argument sake just pay a couple of quid each month from this 123 account into 2 different banks accounts to be classed as my D/Ds.

Any help and advice will be appreciated
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  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    CCFC_80 wrote: »
    Just looking for advice on this as I have 20k approx in savings and for me it appears a complete no brainer to open this account with 3% interest.
    There are other ways to make 3%...even 5% AER...on the same £20K - without losing £24 of it in fees. Depends if you want one current account or 4 though I suppose (although you're likely to need 2 savings accounts on top of the 1-2-3 account, so you're comparing 3 with 4).
    Does anyone know if I can just for argument sake just pay a couple of quid each month from this 123 account into 2 different banks accounts to be classed as my D/Ds.
    If the other accounts (they'll be savings, rather than current accounts though) can pull money in by DD it'll be fine.

    There's a thread on this board just a few pages lower down which lists savings accounts able to pull in by DD, but as a guide Tesco, Post Office, and Santander savings accounts all allow funding by DD. Note...they don't have to be used, just set up, in order to get your 3% (or, rather, the equivalent of 2.88% AER with no qualifying cashback DDs).
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    open a Tesco saving a/c and set up a Direct Debit.
    open a Paypal a/c and set up a Direct Debit.

    Sorted.

    Or go to Lloyds/TSB and open 4 Vantage/Enhance accounts (3% each - no fee) and put £5K in each.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    G_M wrote: »
    open a Tesco saving a/c and set up a Direct Debit.
    open a Paypal a/c and set up a Direct Debit.
    If you're going to the Tesco site, may as well open two accounts whilst you're there...Internet Saver and Instant Access Savings Account...and set up a DD on each, especially if the Paypal account is never likely to be used?
  • Ifts
    Ifts Posts: 1,960 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Name Dropper
    edited 21 October 2013 at 1:16AM
    If you're going to the Tesco site, may as well open two accounts whilst you're there...Internet Saver and Instant Access Savings Account...and set up a DD on each

    Yep thats what Ive done set up a £1 dd on each of my Tesco's accounts and it works a treat.
    One bonus of keeping my Tesco accounts open when the rates dropped.
    Never let the perfume of the premium overpower the odour of the risk
  • dab43
    dab43 Posts: 52 Forumite
    Does any one know if Talktalk are included for cashback?.
    Can I register the 123 Santander current account for non tax payer?.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    You can check the qualifying companies here: http://www.santander-products.co.uk/banking/calculator/cashbacksearch.html

    You should be able to register for gross interest payment - usually you give your bank an R85 form. http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=nCRoVNw8-lk&formid=835
  • dab43
    dab43 Posts: 52 Forumite
    The only other thing is it worth me taking 20,000 out of my Isa and losing the tax free benefit of an Isa?.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I would personally not give up the tax wrapper for a few quid - - it's taken you years to get £20K into the shelter. However, only you can decide because only you know your circumstances. E.g. if you know you'll spend the £20K in the next couple of years, you might as well chance it and go for what's currently the better interest rate in the 123. Remember the rate is variable, and they could drop it at any time.
  • CCFC_80
    CCFC_80 Posts: 1,289 Forumite
    Just a further update on this. I now have my new account number and am nearly ready to go with these 2 direct debits .My house and car insurance are due shortly. If I make a one off yearly payment of each, is that classed as a direct debit or will they have to be 12 monthly instalments.

    Thanks again for any help
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    CCFC_80 wrote: »
    Just a further update on this. I now have my new account number and am nearly ready to go with these 2 direct debits .My house and car insurance are due shortly. If I make a one off yearly payment of each, is that classed as a direct debit or will they have to be 12 monthly instalments.

    Thanks again for any help
    DDs don't need to be paid at all, merely exist on the account. However, if they're not used they will lapse and be cancelled under the dormancy rules.

    You need to double check (unless you've already done so?) the insurance companies will take an annual payment by DD, because they're often CPAs on your debit card for annual renewals. Which brings about a further question...how do you know now you'll be staying with them next year?
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