Santander 123 Account Advice

Jesc

Right, I have just managed to take time out to read the above article and understand things a bit better.

So my thughts are (and opinions would be gratefully received):

- transfer whole lump sum into the Santander 123 account purely as it offers the best interest rates for such a large sum of money.

- then leave that lump sum stable in there gaining note rest for as long as possible.

- next use my wage (£1,000 a month) to do 3 things:
1. Leave £350 in 123 account to use as rent money etc so I don't touch the £15,000
- set up one direct debit and pay 450 into some sort of saver (help would be much appreciated as the MSE are only suggesting high interest ones lnked to current accounts)
- then use the final £200 as another direct debit into a stocks and shares isa (again not sure which)?

Thughts please

mgdavid

Jesc wrote: »

Right, I have just managed to take time out to read the above article and understand things a bit better.

So my thughts are (and opinions would be gratefully received):

- transfer whole lump sum into the Santander 123 account purely as it offers the best interest rates for such a large sum of money.

- then leave that lump sum stable in there gaining note rest for as long as possible.

- next use my wage (£1,000 a month) to do 3 things:
1. Leave £350 in 123 account to use as rent money etc so I don't touch the £15,000
- set up one direct debit and pay 450 into some sort of saver (help would be much appreciated as the MSE are only suggesting high interest ones lnked to current accounts)
- then use the final £200 as another direct debit into a stocks and shares isa (again not sure which)?

Thughts please

Think you may be confusing Direct Debit with Standing Order. The only account you can use to create a DD with is the Tesco's account as mentioned earlier. You could always authorise a DD of say a tenner a year with your favourite charity, or open 2 Tesco's accounts.

colsten

Jesc wrote: »

- transfer whole lump sum into the Santander 123 account purely as it offers the best interest rates for such a large sum of money.

Santander 123 offers interest to the lazyest of people with up to £20K in cash. But for £15K, the best interest offered is actually by a combination of Nationwide, TSB, Lloyds and Tesco current accounts, and perhaps some Regular Savers thrown in. Please spend more time reading and understanding your options.

I also agree with mgdavid, you are confusing Standing Orders and Direct Debits. May be this helps: https://www.moneyadviceservice.org.uk/en/articles/direct-debits-and-standing-orders

Jesc wrote: »

- then use the final £200 as another direct debit into a stocks and shares isa (again not sure which)?

No offence but an S&S ISA is way beyond your current capabilities. I would suggest you need to read up what an S&S ISA is - - it is essentially an investment. I fear you don't know anything about investments and would suggest you stay well clear of any investment and S&S ISA until you have sorted your savings, and until you have had time to understand investments.

Jesc

But why would I want four current accounts i only earn £1000 a month which won't work given each current account expects a minimum of a certain amount in their t and C's.

B_G_B

Jesc wrote: »

But why would I want four current accounts i only earn £1000 a month which won't work given each current account expects a minimum of a certain amount in their t and C's.

Just transfer funds from account ‘A’ to account ‘B’ to account ‘C’…..etc…. and back to account ‘A’. I fund 9 accounts at present like this. Income is irrelevant.

colsten

Jesc wrote: »

But why would I want four current accounts i only earn £1000 a month which won't work given each current account expects a minimum of a certain amount in their t and C's.

I would expect you want maximum interest?

Your income is irrelevant as you have enough money already to shuffle e.g. £1,500 from A to B to C to D to A (i.e. in a daisy chain) once a month. You can do that by SO (not by DD) or manually.

xylophone

Open a Nationwide Flex direct account - deposit £2500.

Open a Lloyds Club account - deposit £5000.

Set up a monthly standing order to transfer £1500 from Lloyds to Nationwide and a monthly standing order to transfer the £1500 back to Lloyds.

Move the interest earned on these accounts to one of the BOS accounts.

Open three BOS accounts, one with £4500, the other two with £1500 each.

Set up monthly standing orders to transfer £1000 between these three accounts.

Open one Tesco Internet Saver and one Tesco Instant Saver.

Set up a direct debit on each to pull £1 a month from Lloyds Club.

From your income, you can fund your three BOS until they reach the maximum interest earning point of £5000 in each.

Open a Halifax Reward current account. Pay your salary into this - it will make moving money into BOS accounts easy.

Set up 2 monthly DDs on this account (as above) and earn the £5 a month reward - you can shift this to one of the BOS accounts.

After the Nationwide Flex "matures", switch to an account that pays a switching reward.

Once all the accounts are "full", open an interest paying account into which you can move the interest......

And so on.......

Or, the simple option, start with the whole £15000 in the 123, pay your monthly salary into into it. Be careful of the 123 accounting period.

https://forums.moneysavingexpert.com/discussion/4441885

Set up the two Tesco Savings accounts as above for the required DDs.

Once you have £20,000 in the 123, open another interest paying account and so on....

xylophone

And see (from 6/4/15) https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293747/Fact_sheet_template_-_10__tax_9.pdf

example "Derek"

Jesc

THANK YOU SO MUCH! That black and white clear as day process has helped no end!

Your words are very much appreciated!

colsten

Jesc wrote: »

THANK YOU SO MUCH! That black and white clear as day process has helped no end!

Your words are very much appreciated!

What are you going to do if the black and white (whatever that was) does not deliver what you expected t to deliver?