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Santander 123 Account
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goodmorningsunshine
Posts: 518 Forumite
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.
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
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Comments
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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%.0
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goodmorningsunshine wrote: »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.0 -
goodmorningsunshine wrote: »or even how much interest you would get monthly with balance of 1,000 - 2,000 - 3,000?
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.0 -
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)0 -
is the £500 p/mth needed to qualify, ...
is it per calender month, or monthly from opening ?0
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