Maintain interest on 123 after £20k

Semple

Santander will only pay interest on upto the 20k, so if you have 25k in the account, 5k will be earning 0% interest, but you'll still get your interest on the 20k.

As for the TSB Classic Plus account, the interest is calculated on a daily basis, so if you move the 2k from TSB to Santander on day 1, then you'll only get 1/30th of your monthly interest. Just keep bouncing the £500 payment requirement through the account and leave it there.

EssexExile

Purplesky wrote: »

Surely the cashback for various things can add up significantly?

My cashback is only about £5 a month.

polymaff

liamsteven wrote: »

Thanks!! That's good to know that I will still get interest on 20k which I am soon to reach.

I think I will transfer 2k to TSB Classic Plus each month to earn the 5% and then transfer the 2k back along with the ~ £85 earned.

£20k in a 123 current account returns about £40 nett per month. £2k in the TSB account returns about £7 nett per month - but to get that £47 per month you need £22k, £20k permanently in the 123 account, £2k permanently in the TSB.