santander 123 direct debit question

Runnerduck

Hi, i have a santander 123 account and my 20 year old son has just opened one, the problem is he is struggling with the direct debits, i was wondering if he payed his car tax in one lump sum direct debit would that count? as if he spreads it over the year it will cost more overall. thanks for any advice x

colsten

Any DD will count. But you need 2. The easiest way to create DDs is to open two Tesco savings accounts and pull a pound or so into them each month. Although once a year would suffice for Santander under the current T&Cs.

Been discussed to death on this board.

Runnerduck

Thanks for the reply, he tried to do one to feed into his regular saver but they wouldn't accept it, he has had trouble opening this even though he was trying to deposit the full £20,000 as he is only 20 and not got a credit rating , had to be appealed 3 times, so may struggle to open the tesco one too, but its worth a try.

ctdctd

If he has a Paypal account, he could add the bank as a DD?

Or open an account with RateSetter and set up a small DD to lend each month?

YorkshireBoy

Runnerduck wrote: »

he has had trouble opening this even though he was trying to deposit the full £20,000 as he is only 20 and not got a credit rating , had to be appealed 3 times, so may struggle to open the tesco one too, but its worth a try.

The Tesco accounts suggested are savings accounts, not current accounts, therefore no "credit rating" (or, more accurately, credit history) is required.

enthusiasticsaver

Does he not have a mobile phone bill? He would also get cashback on that if he set it up with Santander.

xylophone

The accounts are the Tesco Internet Saver and Instant Access Saver.

He needs to open one of each, then set up a DD on each to pull say £1 a month from the Santander account.

He could choose different dates for the DDs to be taken.

He also needs to remember to credit £500 every "Santander month"- this can be in and out.

Remember the £2 monthly account fee.

Runnerduck

yes, but only about £9 a month (it was the best deal he could get), he was going to move that for his one direct debit, it's the other he was struggling with, may do the lump sum car tax or the tesco savings now i think, thanks for your replies.

Runnerduck

xylophone wrote: »

The accounts are the Tesco Internet Saver and Instant Access Saver.

He needs to open one of each, then set up a DD on each to pull say £1 a month from the Santander account.

He could choose different dates for the DDs to be taken.

He also needs to remember to credit £500 every "Santander month"- this can be in and out.

Remember the £2 monthly account fee.

thanks for that, he is ok with the £500 in, he has set it up from his barclays account today, but needs somewhere to move the money over the 20,000 out of his account now into to save to hopefully open the homebuyer isa in the autumn, if it all looks good when more details are available

pathtofreedom

Could he get netflix or similar as that is dd? Of course only if it is something he'd like. I have teamed up with some friends so we share my account, I pay the £6.99 a month to have more than one device to be used at once and my friend gives me free massages. I think I'm getting the much better end of the deal as it only costs me £1 more a month for something I'd pay for anyway.

colsten

Runnerduck wrote: »

thanks for that, he is ok with the £500 in, he has set it up from his barclays account today, but needs somewhere to move the money over the 20,000 out of his account now into to save to hopefully open the homebuyer isa in the autumn, if it all looks good when more details are available

So what is the problem - 2 DDs or an account for savings that exceed £20k?

The simplest answer to the DDs are a couple of Tesco savings accounts.

The simplest answer to cash above £20K are other interest paying current accounts (TSB, Tesco, Lloyds, BOS) and/or regular savings accounts (FD, HSBC, M&S, Lloys, KRBS etc) or even regular savings ISAs.