Santander UK - 123 Bank Account, doubts.

Mark1987

please dont leave more than £2000 in your tsb account as no interest will be paid on anything above 2k.

I will always keep at least 2k there and if I have much more I'll try to move them somewhere else. Thanks for the advice.

YorkshireBoy

Mark1987 wrote: »

So, every statement month they will check if I paid £500 into my account and (maybe definitely) if I have been charged for 2 DDs set up. It is easy to satisfy both conditions so I can be safe.

Corrected that for you.

savings_my_hobby

I mean that santander pay you 2.96% interest but because of the tax you will only actually receive 2.36% or £23.60 for every £1000 per year unless you are a high tax payer then you would only end up with 1.77%

Mark1987

Okay, clear now. I'm not a higher rate tax payer for sure and 2.36 on 20k seems very good.

Eco_Miser

Yes, but ALL the other higher paying bank accounts have a higher rate, since Santander also charge £24 per year fees, while TSB, Nationwide, Lloyds pay 5% or 4%.

Mark1987

Yes, I will open accounts there as well but I want to give the priority to Santander since they consider amounts up to 20k. With their interest on 20k paying 24 pounds a years is nothing. As far as I remember the other accounts consider amounts up to 2k, 3k, and 5k for interests. Maybe I am wrong...

colsten

If you have enough qualifying DDs, you can earn a lot more than £24 a year in cashback

savings_my_hobby

Mark1987 wrote: »

Yes, I will open accounts there as well but I want to give the priority to Santander since they consider amounts up to 20k. With their interest on 20k paying 24 pounds a years is nothing. As far as I remember the other accounts consider amounts up to 2k, 3k, and 5k for interests. Maybe I am wrong...

Mark thats your choice but i'd give priority to the other account as they give better returns per £1000. I'd then put the rest in the santander 123 account which would give you £10,000 + 2.36% or £10,236. £236 interest

on the other £9,500 (tsb 2k, nw 2.5k, club lloyds 5k). you could earn £262 interest.
the other £500 could go towards your M&S account £250per month and that could get you an extra £95 if you can find an extra £250 per month.
Anyway what ever you choose to do - good luck

Mark1987

Actually I could reach £35k to invest in these saving accounts. Considering that amount of money, what would be the priority to give to these accounts?

All the accounts you mentioned give monthly interests?

Could you just confirm me that with 20k on Santander 123 I will receive at least £450 each month? Because I had a look at this calculator on their website and it's written "Annual total". Why?

http://www.santander-products.co.uk/banking/calculator/123ca.html

Next step now This Saturday I want to open two accounts. Which ones? I would say one is Santander, the other one?

(I currently have TSB Classic Plus with 2k on it)

Thanks again guys!

LXdaddy

Mark1987 wrote: »

Could you just confirm me that with 20k on Santander 123 I will receive at least £450 each month? Because I had a look at this calculator on their website and it's written "Annual total". Why?

http://www.santander-products.co.uk/banking/calculator/123ca.html

No you won't get at least £450/month with £20K in Santander 123.

£20,000 * 3% = £600 GROSS per YEAR. So you get roughly £600 / 12 = £50 GROSS per month. And take off 20% basic tax and we have £50 * 80% = £40 nett per month.

So I get about £40 per month interest each month. It is approximately because each month is not exactly the same and the actual (not compounded) interest rate is 2.96%.

Bottom line - about £40 per month.