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Santander 123 Account

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Sorry my brain is frazzled with working, shopping, eating, xmas etc etc.

Has anyone worked out how much you would need in the 123 account to cover the 2.00 monthly account fee, without paying any bills from that account?

or even how much interest you would get monthly with balance of 1,000 - 2,000 - 3,000?

My understanding of the account is 1,000 balance is 1% interest, 2,000 balance is 2% and 3,000 balance is 3%.

But I could be wrong.
Looking forward to the day I have nothing left to list on eBay

Comments

  • anselld
    anselld Posts: 8,642 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You would need £2000. This would earn £32 per year after basic tax which would more than cover the fee. Below £2000 would not cover the fee due to the drop to 1%.
  • without paying any bills from that account?

    You need 2 direct debits set up to get the interest, so you might as well use ones which give cash-back if you can.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    or even how much interest you would get monthly with balance of 1,000 - 2,000 - 3,000?
    Assuming a static balance, monthly interest is calculated as follows:


    Balance x gross p.a. rate / 365 x n x 0.8 (for a BR tax payer)


    where n = number of days in the statement month.


    Now you can do your own sums. :)
  • Gromitt
    Gromitt Posts: 5,063 Forumite
    You can even calculate the 'effective' AER so you can compare with likewise accounts not charging a fee. Only works if you don't have any DDs paying cashback of course!

    Eg: 10K @ 3% - BRT - £24 fee = £216
    100/10000*216 = 2.16% net (2.7% gross)
  • castle96
    castle96 Posts: 2,979 Forumite
    Part of the Furniture 1,000 Posts
    is the £500 p/mth needed to qualify, ...

    is it per calender month, or monthly from opening ?
  • jem16
    jem16 Posts: 19,593 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    castle96 wrote: »
    is the £500 p/mth needed to qualify, ...

    Yes.
    is it per calender month, or monthly from opening ?

    Monthly from opening.
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