Santander 123 Account Advice

xylophone

Not send the frighteners round to my house, I hope..:eek:

YorkshireBoy

xylophone wrote: »

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.

I'd go a different way, because £3K of the money is only making 2% AER.

I'd open 3, but only fund 2 of them (with £3,750 each) for now, and until I'd amassed a total of £9K across those 2. That way, all my cash would be making 3% AER. I'd then start to use the 3rd, by splitting the cash into 3 lots of £3K.

Obviously this would mean SOs would be out for a while, and manual payments made instead...but that takes what?...30 seconds? Do it when you log in to check the accounts (at least) once a month. The 3rd account would need including in this funding loop at the outset though, just to maintain Vantage status (ie stop them downgrading it for whatever reason).

Eco_Miser

I don't have any earnings; I have been with the same bank since the age of 6, they're currently paying me 4% in the account I opened 44 years ago .

However I have another 7 current accounts and too many closed accounts with other banks and building societies to count.

xylophone's instructions above missed out the TSB - one of the easiest set of conditions to meet( no DDs, £500pm, go paperless) and the highest rate 5% on £1-£2000.

Jesc

Colts ten (who seems to be on the simistic side) if it doesn't work, I'll try something else but it is worth a !!!! as at present that is a sound structure.

I am sitting here currently, writing a table collating all interest rates with the bank accounts that would work with my savings etc and working out which is the soundest one.

Tsb is definitely in the equation for sure.

Xylophone thanks for the advice and if it does 't wrk I will just try something else so do 't panic, you are safe!

Jesc

Yorkshire boy thanks for the heads up on gaining more note rest!

xylophone

gaining more note rest!

You don't want those notes snoozing away - they need to be slaving away earning you money......:rotfl:

Jesc

I know and thanks to your help xylophono my money should grow - fingers crossed!

xylophone

Remember to read the terms and conditions of all the accounts carefully - look at interest earning period, minimum monthly deposits and make sure that you know which require DDs and whether they need to pay out monthly.

Make sure that you understand your tax position and if you do not pay tax, that you register for gross interest.

Good Luck!

ColdIron

One final detail you should be aware of regarding your Standing Orders

You need to pay in once a month but for the 123 this is not a calendar month but the date that you opened the account. So if you opened it on the 9th you will receive interest on the 9th (or thereabouts, the monthiversary). To avoid problems with weekends, bank holidays etc you would be wise to set your SO date 4 or 5 days after that date so, for example, the 14th

Jesc

Xylophono you'll be pleased to know that I am sifting my way through reading all the terms and conditions of the current accounts before I make any rash decisions.

I will definitely bare in mind the standing dates etc as I read the article about standing orders above when I was mixing directing debits up with standing orders and it mentioned being aware of dates.

One final thing my tax position, how do I find this out as to be honest I don't know if I am a tax payer or not?