Amount needed to cover San 123 account monthly fee

vixen1500

Just wondering if someone could confirm if I have worked this out right.


Have no direct debits to set up to cover monthly fee
so -
As long as I keep a minimum of £2500 in the account @ 3%
this would cover the £2 fee + give me the same interest as having the £2500 in my Nationwide Saver 5 paying 2%.


Thanks

molerat

You need £3000 and have 2 direct debits set up and have £500 deposited into the account each month to earn the 3%.

apt

Have you exhausted the high interest current accounts that don't charge a fee - TSB (x2), Nationwide, Lloyds Club, Tesco etc.? You need £3,000 min balance for 3% for the Santander 123.

colsten

Roughly, yes, if those were the interest rates. As of October 1 your Flexclusive Saver 5 only pays 1.2%, so the 123 is a lot better even after the monthly fee. And some others are even better, as mentioned.

vixen1500

colsten wrote: »

Roughly, yes, if those were the interest rates. As of October 1 your Flexclusive Saver 5 only pays 1.2%, so the 123 is a lot better even after the monthly fee. And some others are even better, as mentioned.

Many thanks for replying - I had not been aware of the change in interest rates - so another 2 account to close.

vixen1500

apt wrote: »

Have you exhausted the high interest current accounts that don't charge a fee - TSB (x2), Nationwide, Lloyds Club, Tesco etc.? You need £3,000 min balance for 3% for the Santander 123.

Thanks - have the TSB, LLoyds, Halifax bank of Scotland, closed Nationwide flex in May so not able to open another till next year, not got any Tesco ones - but thought it would be less hassle to just get a joint San 123 as trying to find somewhere to put monies from 6 (3 each) TSBs as the rate is now dropping

vixen1500

molerat wrote: »

You need £3000 and have 2 direct debits set up and have £500 deposited into the account each month to earn the 3%.

Ops - I had not realised that you needed 2 direct debits - is this a new requirement - sure o.h. has not got any on his account and he is getting around £50 per month interest - has he not been getting the full 3% then?

eskbanker

vixen1500 wrote: »

Ops - I had not realised that you needed 2 direct debits - is this a new requirement - sure o.h. has not got any on his account and he is getting around £50 per month interest - has he not been getting the full 3% then?

2 DDs have been a requirement for Santander 123 for a long time, probably right back to their introduction in 2012. A fully-loaded (for interest purposes) 123 at £20K would earn roughly £50 per month in gross interest or £40 net of BR tax, so if OH achieves this without DDs he's lucky as the Ts & Cs are quite clear about the DD requirement, best not to rely on trying to replicate this!

consumers_revenge

Wrong place - opps :-)

vixen1500

eskbanker wrote: »

2 DDs have been a requirement for Santander 123 for a long time, probably right back to their introduction in 2012. A fully-loaded (for interest purposes) 123 at £20K would earn roughly £50 per month in gross interest or £40 net of BR tax, so if OH achieves this without DDs he's lucky as the Ts & Cs are quite clear about the DD requirement, best not to rely on trying to replicate this![/QUOTE





Thanks for mentioning the 2 DDs - I had totally forgotten about that requirement - he had 2 DDs set up on the account that he switch from - will have to check that I have some set up on my donor account

jennifernil

You can just set them up later surely? As long as you have them done in a reasonable time. I didn't put other than the minimum funding into mine until I had everything in place.