NISA or savings account?

ceredigion

think colsten was being facetious !!!!

colsten

TickersPlaysPop wrote: »

Santander 123 account

That is a current account, not a savings account. You claimed there were savings accounts paying 3% AER on instant access.

There are many differences between current and savings accounts, not least the fact that some people are unable to get a current account as they will not pass the credit checks done on them (no credit checks on savings accounts).

TickersPlaysPop wrote: »

Technically it is not a savings account it is a current account

glad we agree there are differences

TickersPlaysPop wrote: »

and you can open 2 in each name, so for couples that is 80k.

everyone can now have 1 sole and 1 joint 123 current account, which makes 3 accounts between two people, £60,000. Joint accounts have all sorts of special considerations to take into account, e.g. each of the joint account holders has the right to the entire balance so you or your partner could clean out the entire account with no comeback by either.

TickersPlaysPop wrote: »

The max is 20k per account and you need to have 2 direct debits and put in 500/mth to qualify for 3% interest. the fee is only £2 mth which is easily cancelled out if you select 2 large bills for the direct debits such as energy and council tax whic both qualify for money back.

It has been top of the money saving expert charts for ages... So I am surprised you haven't heard of this.

yep, I know all about it, I have had 123 accounts since before the current limitations on number of accounts came into force. Still doesn't make a 123 account a savings account.

TickersPlaysPop wrote: »

So if you put the time in you can get a lot of interest from a lot of money

I know, I have had at least two dozen current accounts for a few years now.

Herbalus

TickersPlaysPop wrote: »

Santander 123 account

Technically it is not a savings account it is a current account and you can open 2 in each name, so for couples that is 80k....
It has been top of the money saving expert charts for ages... So I am surprised you haven't heard of this.

I think they were joking

They know there is no savings account paying 3% (apart from reg savers, child accounts, and possibly 5 year fixes).

And the limit for Santander 123 is 1 each plus 1 joint, which means a couple can only have 3 between them, so only £60k.

TickersPlaysPop wrote: »

The only slight concern for me, which many don't share is the tentative link to Spain and it's shaky economic state as a country and their banking sector. Santander is not supposed to be linked between Spain and UK, so if Spain goes belly up UK Santander accounts would be fine apparently.... I'm sceptical.

It isn't "not supposed to be" linked to Spain - it actually isn't, and not down to opinion. There are safeguards in place to stop Santander UK money moving to Spain:

From the BBC:

The big point here is that the Spanish parent bank cannot, at the press of a button, suck all the money out of its UK operation to prop up its business there.

"Effectively we are a bank with one shareholder - Banco Santander," explained a bank spokesman in London.

"The only way to get their hands on the money here would be by a large dividend.

"That would only happen with the permission of the FSA - and they would only allow it if there was still sufficient money in the UK bank to meet its requirements," he stressed.

mollycat

But, the fact I might miss out on tax free interest in the distant future is a conundrum! Maybe, the rules and regs could be changed for this yrs NISA in future? Can the NISA contract be changed by government?... Have they ever changed benefits of the old Tax free wrapper products?


So you are sure NISA's will have then same 15k limit always? I'm not sure you can be certain?

The only slight concern for me, which many don't share is the tentative link to Spain and it's shaky economic state as a country and their banking sector. Santander is not supposed to be linked between Spain and UK, so if Spain goes belly up UK Santander accounts would be fine apparently.... I'm sceptical

You need to stop fretting over all this stuff!!

colsten

TickersPlaysPop wrote: »

The only slight concern for me, which many don't share is the tentative link to Spain and it's shaky economic state as a country and their banking sector. Santander is not supposed to be linked between Spain and UK, so if Spain goes belly up UK Santander accounts would be fine apparently.... I'm sceptical.

Santander UK is covered by the FSCS £85K guarantee like any other UK registered bank is. I.e. if you keep no more than £85K with the same financial institution, you are completely safe.

Alongside spanish banks, we have indian and cyprus and american banks who all have FCA licences. Up to £85K, they are all just as safe as any of the "proper" UK banks are.

Use this to figure out where you stand: http://www.moneysavingexpert.com/savings/safe-savings#whatcounts

TickersPlaysPop

Herbalus wrote: »

I think they were joking

It isn't "not supposed to be" linked to Spain - it actually isn't, and not down to opinion. There are safeguards in place to stop Santander UK money moving to Spain:

From the BBC:

Ooooops I didn't detect the 'joke' (don't give up the day job!)

And sorry for my slightly out of date info in how many 123 accounts can be opened.

Thx for info on Spain and UK Santander operations... Don't believe any of it.... it is no coincidence that Santander are providing the best current accounts in UK and also happen to have a parent bank in dire straights.... there must be a big advantage to Santander group to take a large share of the UK current account market.... I'm sure it is in some way securing or off setting their toxic assets.... Which must be putting some risk to those putting business their way.... I am fully ware of this, but comfortable with the risk.

TickersPlaysPop

mollycat wrote: »

You need to stop fretting over all this stuff!!

I don't disagree.... !

Maybe you didn't suffer from the 2008 crash and IceSave going bust? I did ..... and it wasn't a very pleasant experience, luckily it didn't stop me buying a house, but the house equity cash locked in the mess took mths to come back to me, and I missed out on at least 3 mths interest.... If I had needed the cash for a house deposit it would have been a disaster.

mollycat

TickersPlaysPop wrote: »

I don't disagree.... !

Maybe you didn't suffer from the 2008 crash and IceSave going bust? I did ..... and it wasn't a very pleasant experience, luckily it didn't stop me buying a house, but the house equity cash locked in the mess took mths to come back to me, and I missed out on at least 3 mths interest.... If I had needed the cash for a house deposit it would have been a disaster.

In retrospect i shouldn't have contributed to your thread as I now realise there's nothing i can really say that would be of help to you...sorry

Hope you can consider some of the better points and advice made on the thread.

Good luck!

bigadaj

TickersPlaysPop wrote: »

I don't disagree.... !

Maybe you didn't suffer from the 2008 crash and IceSave going bust? I did ..... and it wasn't a very pleasant experience, luckily it didn't stop me buying a house, but the house equity cash locked in the mess took mths to come back to me, and I missed out on at least 3 mths interest.... If I had needed the cash for a house deposit it would have been a disaster.

Well I had some money in kaupthing and was very pleased, as I recall I continued getting top interest whilst it was getting sorted out and it was only a few weeks, though interesting times whilst it was ongoing !