3 year ISA maturing.

Archi_Bald

joshly wrote: »

Would Santander frown on me sending £500 to my existing low interest account with another bank and then sending it back to Santander the next day?

No, and there is no need to wait for a day. Just do it all on the same day / minute. It is a current account, it's normal that money goes in and out frequently.

joshly wrote: »

I just noticed there is a maximum of £450 interest allowed a year after fees.

In a 123, you get interest on up to £20,000 - plenty of room for your £15K.

missile

joshly wrote: »

...
I just noticed there is a maximum of £450 interest allowed a year after fees.

? I don't see that in the T&Cs for the Santander 123 current account?

missile

joshly wrote: »

Santander offer 3% if 2 DD's are set up and £500 is paid in per month.
Would Santander frown on me sending £500 to my existing low interest account with another bank and then sending it back to Santander the next day?
.

Switch your low interest account. You can get 5% with TSB and other banks.

Archi_Bald

missile wrote: »

? I don't see that in the T&Cs for the Santander 123 current account?

I think what joshly meant is that a BR tax payer would be able to make around £450 a year if they kept £20K in the account all year and got no cashback from DDs............

((£200000 * 2.96%)*80%)-£24=£449.60

kangoora

Personally I would consider switching to Santander and having all your DD's coming out of it.

I'm making circa £10/month just on DD cashbacks even after deducting the £2/month account fee. That's not counting any interest.

joshly

missile wrote: »

? I don't see that in the T&Cs for the Santander 123 current account?

If you scroll down to the table on this page you will see it,
If you invested £20,000 @ 3% = £600 - £24 monthly fees.


http://www.moneysavingexpert.com/news/banking/2014/03/tsb-to-pay-5-interest-on-new-current-account--is-it-any-good

Eco_Miser

That's not a limit in itself - it's just the result of the £20,000 limit and taking tax off every month, as Archi Bald said.
A non-taxpayer would receive £600 - £24 = £576 if they always had at least £20,000 in the account.

joshly

Thanks for the information.


It's good to see that there are better options out there.


I have been out of the country for the last 11 months and not been able to take advantage of these higher interest current accounts.


When I get back to the UK and get a property and set up some Direct Debits I will open a new current account, probably with Santander.

missile

joshly wrote: »

If you scroll down to the table on this page you will see it,
If you invested £20,000 @ 3% = £600 - £24 monthly fees.


http://www.moneysavingexpert.com/news/banking/2014/03/tsb-to-pay-5-interest-on-new-current-account--is-it-any-good

The OPs post is misleading "maximum of £450 interest allowed a year after fees".


If one is entitled to gross interest and/or have a number of direct debits to offset the fees, one could receive in excess of £600 / annum.

Eco_Miser

Correcting myself

Eco_Miser wrote: »

A non-taxpayer would receive £600 - £24 = £576 if they always had at least £20,000 in the account.

That's not quite right, as with the full £20,000 in the account, there's no room for the interest to compound - which is necessary to get the AER - so it's about £8 less, £567.90.