Not strictly stoozing, but still free cash

MR_BLAND

Hi all,
I over-pay my energy direct debit each month. My Santander 123 account pays me 2% on the direct debit. After a while I ask the energy provider to repay the excess credit back into my bank account. Suppose it's more like a 2% savings account than stoozing, plus I've never tried it with big amounts.
Just thought I'd share.

SCooper24

Cracking Idea

SuperAllyB

How much do you have in your 123 account? If over £3k you'd be better leaving the overpayment in there and get the 3% interest.

pjread

[QUOTE=SuperAllyB;[URL="tel:64739574"]64739574[/URL]]How much do you have in your 123 account? If over £3k you'd be better leaving the overpayment in there and get the 3% interest.[/QUOTE]
Only if you leave it at least 9 months before requesting it back, and dont pay tax.... Scottish Power let you adjust the DD online (guess othersh may too), and I was very close to whacking it right up the other day But have a power co switch coming up so didn't.

I'm fairly sure cashback is non-taxable, as it's treated as a partial refund/cost reduction against the item paid rather than as interest.

plunt

i have been thinking about this idea for a fair while. my only curiousity is if santander can notice, and secondly will the utility company get annoyed/suspicious due to money laundering concerns...

supersaver1000

Thanks for the info. I opened a 123 ac last month and also have about £200 owing on my Scottish power account so I will definitely be increasing the direct debit.

On a slightly different subject but not strictly stoozing. I have a Tesco credit card which earns club card points. So I have been using my Tesco card instead of my debit card, then when I get home I pay the amount straight off the Tesco card online.

It means I get a few extra Clubcard points. I'm a bit nervous to leave it in the 123 account until the bill arrives but ought to look at doing that as I'd also make interest on it.

planteria

pjread wrote: »

Only if you leave it at least 9 months before requesting it back, and dont pay tax...

i like it. i like the idea of pushing it up so that the Cashback covers the £2/m fee. my Electricity is the only DD i have which kicks back any CB.

and yes, supersaver, spending a credit card, earning Cashback/Points, and allowing the funds to stay in your account, earning Interest, and then be taken by DD on the due date, is a very good idea.

butlinsmum

Great idea Mr Bland - just upped my direct debit. Thanks for the tip

Herbalus

pjread wrote: »

Only if you leave it at least 9 months before requesting it back, and dont pay tax.... Scottish Power let you adjust the DD online (guess othersh may too), and I was very close to whacking it right up the other day But have a power co switch coming up so didn't.

I'm fairly sure cashback is non-taxable, as it's treated as a partial refund/cost reduction against the item paid rather than as interest.

Yes cashback is non-taxable.

I was thinking of doing a spreadsheet the other day to work this out, so thanks for the calculations. Now I'll have your figures to check with

warwicktiger

I do this, I'm with ovo energy who pay 3% interest on credit balances so I get the 2% interest on the 123 and 3% pa.!

zerog

warwicktiger wrote: »

I do this, I'm with ovo energy who pay 3% interest on credit balances so I get the 2% interest on the 123 and 3% pa.!

Is the 3% taxable?