Santander's 123 account- Direct Debit question

DLC2013

Hi everyone,

I'll be succinct. Santander's 123 account requires 2 Direct Debits. Now, I have one already sorted. No problem. But, for the second however, is it possible (in order to satisfy the £500 funding of the account each month) for me to transfer this amount from my Halifax account to the Santander 123 in the form of a Direct Debit?

Does this even constitute a Direct Debit?

I must point out, i am not concerned about any of the cash back offers on utilities etc, rather i am solely interested in the 3% interest.

And yes, I appreciate that this could only be the question of a complete novice but perhaps my more far-reaching question is;

Is the best place to invest 20k?

I already have a 3% 3 year Cash Isa with Halifax as well as a 5 year share plan with BT as an employee, but as yet haven't found anything on parr with the 123 account for, simply put, helping to maximize my interest earning potential.

*Given the fact it also operates as a current account!

So my fellow Forumers, i put it to you, thank you for reading and feel free to bestow your pearls of wisdom :think: upon me, for which i will be exceedingly grateful!

eskbanker

DLC2013 wrote: »

is it possible to transfer £500 each month from my Halifax account to Santander in the form of a Direct Debit?

Even if it was this wouldn't satisfy the need for a direct debit from the 123 account!

If you don't already have any other 'genuine' DDs to move to the 123, then there are plenty of ideas at
https://forums.moneysavingexpert.com/discussion/4168667

DLC2013

Thank you, that goes a long way towards clarifying the Direct Debit uncertainty. I half expected this answer but have not found any written confirmation on Santander's website. I appreciate the link as well!

Archi_Bald

DLC2013 wrote: »

I half expected this answer but have not found any written confirmation on Santander's website.

What confirmation are you hoping to find?

DLC2013

That the Direct Debit needs to be debited from the account rather than with my suggestion whereby the Direct Debit can actually be transferred into the 123 account.

I know to some that idea probably doesn't seem practical or make much sense but thanks for clarifying all the same.

Archi_Bald

You cannot set up Direct Debits between current accounts. A regular automatic payment between current accounts is called a Standing Order. Standing Orders do not count for the 123.

Your question is rendered academic since you are asking about something that doesn't exist.

DLC2013

Ok, well thank you for your answer, perhaps you could give me some further advice on my question as to whether you feel the 123 account is the best place to invest 20k at present?

Gromitt

DLC2013 wrote: »

Ok, well thank you for your answer, perhaps you could give me some further advice on my question as to whether you feel the 123 account is the best place to invest 20k at present?

That completely depends on your needs and requirements. If you are happy with 2.8% (2.24% net) on a no-risk instant access savings account, then yes.

If you are looking at more risk for the chance of a potential far higher reward, then no.

If you don't want the hassle of DDs and transfers, then no.

etc.

DLC2013

I understand what you are saying Gromitt but i suppose in terms of no risk investment, this is the best option currently available, isn't it?

And if i am honest, i am a bit of a no risk kind of investor

That being said, where might you be inclined to invest that sort of money?

I mean i have seen similar threads about this account and where best to invest this kind of money (people talking about gold and trust funds etc)...but i've no great understanding or knowledge of those alternatives.

Thanks for your advice.

Eco_Miser

[

DLC2013 wrote: »

Is the best place to invest 20k?

I already have a 3% 3 year Cash Isa with Halifax as well as a 5 year share plan with BT as an employee, but as yet haven't found anything on parr with the 123 account for, simply put, helping to maximize my interest earning potential.

*Given the fact it also operates as a current account!

1. It's saving, not investing.
2. It's possibly the best place to save £20 in one account.
3. Various Lloyds Group banks each allow up to 3 accounts each, earning 3% on £3k-£5k, with no monthly fee, and internal transfers allowed for the funding requirement. (Lloyds, BOS, TSB)
4. Clydesdale Bank (also trading as Yorkshire Bank) pays 4% on up to £3k for a year.
5. Nationwide pays 5% on £2500 for a year.
6. Halifax Reward pays £60 simply for having two direct debits going out, and cycling £750 through the account each month. No need to leave more than £1 in.

All are current accounts with funding requirements, all rates AER. You may or may not consider the extra interest worth the extra hassle of opening multiple current accounts, but they do beat Santander.