santander 123 question

seh567

I think I might switch our joint account from Lloyds to Santander and put my husbands Santander isa pot £14K in there to earn interest and have easy access. I believe that you can't transfer from another Santander account so should I put the money is in my lloyds account before switching banks?

Newly_retired

I assume you are trying to creat a pot for all your money together? I wonder why that is important to you.
Not sure why you would go for 3% with Santander when you can get more with Lloyds, or TSB and various others.
Almost certainly true that you can get higher rate of interest in a current account than in an ISA, but not sure why you think you cannot move the money out of an ISA into a current account with the same provider, if that's what you want to do?
Best to check the T&Cs.
Sorry if I have misunderstood you.

YorkshireBoy

seh567 wrote: »

I believe that you can't transfer from another Santander account so should I put the money is in my lloyds account before switching banks?

It's only the ongoing £500 monthly funding (necessary for both interest, and cashback on qualifying DDs) that has to come from outside Santander.

seh567

Perhaps I didnt explain myself properly. My husband & I each have a Santander ISA worth £14k each which are about to mature and the interest rates are about to go down to 0.50%. I would normally shop around and transfer to a higher rate ISA. However I have noticed that the Santander 123 current account will pay approx 3% on balances up to £20k which even after tax deducted is a much better rate than any current cash Isa rates. Our circumstances have changed and my husband has a terminal illness, therefore he wants to be assured that I will have easy access to his isa pot when the time comes. We currently have a Lloyds current account and we would only get interest on balances up to £5k so we are thinking we could switch to a Joint Santander 123 account. I am a bit nervous because we have banked with Lloyds for the past 40 years

molerat

To get the interest you need :
to put £500 each month into the 123. This money must come from other than a Santander account in your name including jointly.
you must have 2 direct debits set up on the account, they do not have to be taken each month.

The 123 does not have to be your main current account, use it as a savings account, set up a couple of DDs - energy, council tax and phone & TV are good as you get cashback on them - move £500 each month from Lloyds and straight back again and watch the interest roll in. Keep the Lloyds and take interest from that as well. We have the full 3 123s, one joint and one individual each happily transferring £500 between our individual ones.

pollypenny

We use Santander for savings. With interest and cash back we are getting around £45 pm. I transfer £500 from our HSBC account which takes care of the DDs and a bit over, which I use for odd cheques.

I have been with HSBC/Midland for 50 years. Not much longer, we intend to transfer to Nationwide as soon as we get home.

joe134

pollypenny wrote: »

We use Santander for savings. With interest and cash back we are getting around £45 pm. I transfer £500 from our HSBC account which takes care of the DDs and a bit over, which I use for odd cheques.

I have been with HSBC/Midland for 50 years. Not much longer, we intend to transfer to Nationwide as soon as we get home.

Why? I've been with Hsbc for 60 years, no probs, have got N/wide et.al, no different. I've got 123 A/cs, but just for savings, I wouldn't swap from Hsbc for my main A/c for anything.and got a local branch, not N/wide. Over 35 years, I've had more probs with N/wide than any other bank/BS

Archi_Bald

joe134 wrote: »

Why?

Because HSBC pay no interest for money in your current account, and no cashback for DDs. Not saying it would be the same for everyone but I, for instance, would currently be £2,946.62 poorer if my current accounts were with HSBC.

I do like the 6% HSBC Regular Saver, though, very much so.

JimmyTheWig

Is that for more than one 123 account, Archi Bald?
If not, that's an impressive amount of cashback. How high are your household bills!?

molerat

Probably mortgage cash back

joe134

Archi_Bald wrote: »

Because HSBC pay no interest for money in your current account, and no cashback for DDs. Not saying it would be the same for everyone but I, for instance, would currently be £2,946.62 poorer if my current accounts were with HSBC.

I do like the 6% HSBC Regular Saver, though, very much so.

[/QUOTE Presume your mortgage is with them.?it's a lot of cashback;;;?
]As I have 123 A/cs maxed to £20k, and used my 4 DD.s to get cashback, I don,t get any interest over that amount,£20 k so, stay with Hsbc for everthing else.Agreed it doesn't pay interest, but, not many do.
I have all the other banks A/cs as well, but use the Hsbc, for money in Transit, and all my DD's.
Most people Should have more than one current A/c, like you and me.but, even you must admit, it's only lately, santander have got to grips with it's customer service...I cannot knock them, but, there'splenty on here that can and do.
I haven't looked at the 6%, will do, cheers.:beer: