Lump sum in Santander 123?

sarahandmillie

Hello,

New here... and with a stupid question....I'm looking at opening a Santander 123 account. I know I have to put in £500 per month, but I have a lump sum that I don't know what to do with. Does anyone know if I can open the 123 account and put a lump sum in there along with the £500 each month?
I have read and re-read the info on the account but can't find the answer. I know you only get maximum interest on maximum amount of £20,000 but could I put this much in straight away?

Please help!

Thank you.

gjchester

You can but there are probalby better places to put a large sum than a 123 account.

Biggles

sarahandmillie wrote: »

New here... and with a stupid question....I'm looking at opening a Santander 123 account. I know I have to put in £500 per month, but I have a lump sum that I don't know what to do with. Does anyone know if I can open the 123 account and put a lump sum in there along with the £500 each month?

It's a current account, you can put whatever you like in there (as long as you comply with the £500pm requirement as well).

Biggles

gjchester wrote: »

You can but there are probalby better places to put a large sum than a 123 account.

There aren't many paying more than 3%.

sarahandmillie

Thank you for your replies - I appreciate them. I can't find anything better than 3% that I qualify for (monthly income) - if you have any suggestions, I'd love to hear them.
Thanks again!

eskbanker

There are other interest-paying current accounts paying higher interest rates but on lower balances, so you could get 4-5% on smaller amounts (<£5K) from Nationwide, [STRIKE]Clydesdale/Yorkshire, [/STRIKE]TSB and Lloyds. By opening multiple accounts this could take you up to about £15K at better than 3%, more if there are two of you....

Edit: see table here: http://www.moneysavingexpert.com/savings/savings-loophole

Edit 2: strike Clydesdale/Yorkshire as per Archi's post below

loonytunes123

You can open 2 x 123 accounts (40K max for interest) but 1 must be joint

Archi_Bald

eskbanker wrote: »

There are other interest-paying current accounts paying higher interest rates but on lower balances, so you could get 4-5% on smaller amounts (<£5K) from Nationwide, Clydesdale/Yorkshire,[/URL]

Clydesdale/York Bank have been 2% for a while now for new applicants

ceredigion

sarahandmillie wrote: »

Thank you for your replies - I appreciate them. I can't find anything better than 3% that I qualify for (monthly income) - if you have any suggestions, I'd love to hear them.
Thanks again!

what's that got to do with it