Santander 123 Account Cashback Loophole

regency_man

The 123 accounts pays 2% cashback on Energy bills, is there anything stopping me over-paying my electricity Monthly direct debit up to the limit (which appears to be £500 per month) then pulling it directly back from energy provider?

I'm with OVO energy and they provide a simple online tool for doing this, you get the money back through a BACS transfer about 5 working days later. Santander would be none-the-wiser as it doesn't show as a 'reversal' on the direct debit or anything like that.

This way you can make an instant 2% on £500 every month (£120 per year), then pull it straight back to carry on earning 3% interest in the 123 account.

It doesn't sound like it should be allowed, but I can't find anything in the Ts&Cs to say it isn't allowed....

mgdavid

Sounds fine; give it a go and let us know how you get on please.

Fruit_and_Nut_Case

mgdavid wrote: »

Sounds fine; give it a go and let us know how you get on please.

Don't forget to do it with your water bill too

regency_man

OK I will give it a go - could be a while before I get the results to you as my next energy DD isn't due until this time next month and the 123 account specifies is has to be through DD.

AlwaysLearnin

...and Ovo give you 3% interest on credit balances whilst they have it too...

http://www.ovoenergy.com/refundpolicy/

Hazzanet

Be careful as this could flag up as potential money laundering. Ovo being the integration stage.

Hazzanet

AlwaysLearnin wrote: »

...and Ovo give you 3% interest on credit balances whilst they have it too...

http://www.ovoenergy.com/refundpolicy/

But just be aware:

7.8. If we think you’re making payments into your account just to receive the OVO Interest Reward, we’ll refund the extra amounts to you and we may withhold payment of the OVO Interest Reward on those amounts.

http://www.ovoenergy.com/coreterms2014/

InsideInsurance

The other risk is that the sudden high levels of cashback triggers a manual review by the bank and they decide to close the account giving you the appropriate notice in the terms.

It will depend if short term gain is better than the potential long term earnings

Gram_Parsons

Ovo don't seem to be on the list of Santander's cashback eligible suppliers though?

• British Gas
• SSE
• EDF Energy
• E.ON
• npower
• Southern Electric Gas
• SWALEC Gas

Are they an offshoot of any of the above?

Gram_Parsons

Ah, scrap that. That list is just "examples", Ovo are eligible.

Hazzanet