TSB Current Account,

AndyPK

I wasn't saying that.

The OP has already filled their ISA before looking at high interest current accounts. Therefore I conclude if they have that sort of money £15K+£17K then a Santander 123 account would be very useful where you can earn £750? a year. Rather than accounts where you put trivial amounts in (£2000) and only earn £80. (e.g TSB)

Archi_Bald

AndyPK wrote: »

a Santander 123 account would be very useful where you can earn £750? a year.

£750 is way too high for interest from a 123. If you had £20K in the account at the end of every day for an entire year, the gross interest would be £20,000 * 2.96% = £592. This reduces by £24 if you don't have DDs qualifying for cashback, and most people will automatically have 20% tax withheld (at least until April 5 2016).

How would you make it £750?

AndyPK

I thought I would be told it was wrong.

Is it £480 then.



Looking on my statement its £40.23 a month x12 = £482

colsten

AndyPK wrote: »

I wasn't saying that.

The OP has already filled their ISA before looking at high interest current accounts. Therefore I conclude if they have that sort of money £15K+£17K then a Santander 123 account would be very useful where you can earn £750? a year. Rather than accounts where you put trivial amounts in (£2000) and only earn £80. (e.g TSB)

Sorry, had misunderstood what you had said.

Archi already corrected you on the Santa interest potential and you acknowledged it, so we're probably on the same page now

DiegoGarcia

I think I am going to open a Santander 123 account.
Can someone tell me, to get the interest do you only need to have two direct debits coming out per month and pay in £500 per month? and the charge of £2 per month? For example I don't have council tax, water bills or mortgage payments to come out of this account, or any account at the moment. I want to gain the interest on about £15k. But like I say I don't have the bills to come out. Just the money to put in. I can manage two direct debits and pay in the monthly amount, which isn't a problem. Obviously I won't get the benefits of getting cash back on household bills???


I noticed on the Santander site it says:
To benefit from the 1I2I3 Current Account just follow these steps:

1. Pay a monthly account fee of £2 - which will be taken automatically from your account each month
2. Fund the account with £500 a month (a minimum balance of £1,000 is required to receive interest)
3. Have at least two Direct Debits set up on your account. For cashback household bills must be paid by Direct Debit To organisations within eligible categories.

eskbanker

DiegoGarcia wrote: »

Can someone tell me, to get the interest do you only need to have two direct debits coming out per month and pay in £500 per month? and the charge of £2 per month? For example I don't have council tax, water bills or mortgage payments to come out of this account, or any account at the moment.

As per the terms you quote, the DDs only have to be set up, i.e. there is no requirement for them to pay out monthly, unlike the DD requirements for most other interest-paying current accounts. You don't need any utility/council tax DDs, but if you don't have any of these then you won't get any cashback to offset the monthly £2 charge so it just reduces the net interest a bit....

slinga

Archi_Bald wrote: »

most people will automatically have 20% tax withheld (at least until April 5 2016).

Can you request Santander to pay interest Gross??

Archi_Bald

Yes you can. All banks and building societies can pay interest gross. Some need an R85 form, some (like Santander) allow you to register for gross interest in online banking.

AndyPK

You can get 3% cash back on broadband/landline or mobile phone DD if you have them.