123 Santander Current Account

System

ok....I have the 123 account set-up....just awaiting the bank card....

I guess it's pretty simple from here...

1. Just transfer some money in to fill the account with ££££

2. Set up 2 Direct Debits to go out of the account.

3. Transfer £500 in

Then I assume the system will recognise the qualifying monthly DD + £500 transfer and automatically pay the 3% interest for that month - which I assume will be paid 30 days after the account opening date? and then every 30 days after that?

YorkshireBoy

dburford9 wrote: »

ok....I have the 123 account set-up....just awaiting the bank card....

I guess it's pretty simple from here...

1. Just transfer some money in to fill the account with ££££

2. Set up 2 Direct Debits to go out of the account.

3. Transfer £500 in

Then I assume the system will recognise the qualifying monthly DD + £500 transfer and automatically pay the 3% interest for that month - which I assume will be paid 30 days after the account opening date? and then every 30 days after that?

2. They don't have to "go out of the account" remember. But if you do simply set them up (as that's all you have to do to comply with the T&Cs), be sure to let them pull at least once a year to avoid 'dormancy' issues.


As to "30 days", well that will depend on the number of days in the statement month, ie 28/29/30/31. It's been termed payable on the 'monthiversary', ie if your account is opened on the 18th, then your interest will always* be payable on the 18th.


* Unless you're upgraded to 'Select'.

System

YorkshireBoy wrote: »

2. They don't have to "go out of the account" remember. But if you do simply set them up (as that's all you have to do to comply with the T&Cs), be sure to let them pull at least once a year to avoid 'dormancy' issue

Cheers Yorkshire Boy for your help....

I am no good at this financial stuff....


I am not sure what you mean by: "They don't have to "go out of the account" remember." in reference to Direct Debits. Isn't that what DD do - they are payments out of an account. Sorry - I've probably missed something you are referring to?


I assumed that Direct Debits had to be active every month. That isn't the case then? - You just need to have 2 active DD's with 1 transaction each annually.......So I could just set up 2 annual £1 Direct Debits to charities.


So opening another bank (like Tesco) just for the sake of creating a Direct Debit payment from the 123 account seems unnecessary as it will just save me a couple of pounds. I would not have any other use for the Tesco account....so think I'll go for 2 charitable donations a year.

bsms1147

dburford9 wrote: »

I assumed that Direct Debits had to be active every month. That isn't the case then? - You just need to have 2 active DD's with 1 transaction each annually

Correct (though the annual payment just stops the direct debit mandate from lapsing, I think technically you don't need any transactions, not even annual ones, you could just set up a new direct debit if and when the original ones lapsed).

Other current accounts do require monthly direct debits, in which case direct debits to savings accounts can make more sense.

agent69

colsten wrote: »

You might have misunderstood what they said, or not remember exactly what they said. You can check terms online.

The key facts sheet that I was given says that the DD'S need to be 'active'.

Can it be considered active if its not been used?

colsten

agent69 wrote: »

The key facts sheet that I was given says that the DD'S need to be 'active'.

Can it be considered active if its not been used?

You are quite right to ask what an "active" DD is, and I cannot actually point you at a written definition of it by any bank, let alone any written definition that would apply to all banks.

It would be wrong to assume that "active" implies that the DD must pay monthly. Why, out of all options DDs (monthly, quarterly, annually, 4-weekly, every 15th etc etc etc) would 'monthly' command to be the 'active' one?

You will find that those banks who require monthly paying DDs say so in their terms and conditions.

You will also find that a DD that has not been executed at least once within the last 13 months might get automatically deleted by the bank. Thus it is wise to use DDs that pay at least once a year for Santander.

Of course, it is very straight forward to set up monthly DDs if this is what you wish to do.

badger09

dburford9 wrote: »

ok....I have the 123 account set-up....just awaiting the bank card....

I guess it's pretty simple from here...

1. Just transfer some money in to fill the account with ££££

2. Set up 2 Direct Debits to go out of the account.

3. Transfer £500 in

Then I assume the system will recognise the qualifying monthly DD + £500 transfer and automatically pay the 3% interest for that month - which I assume will be paid 30 days after the account opening date? and then every 30 days after that?

At the risk of confusing you Assuming your initial deposit is £500 or more, which it should be if you aim is to earn interest , then you don't need to transfer another £500 in during that statement period, as you've already met that requirement.

System

badger09 wrote: »

At the risk of confusing you Assuming your initial deposit is £500 or more, which it should be if you aim is to earn interest , then you don't need to transfer another £500 in during that statement period, as you've already met that requirement.

I understand that.

Though I'm not sure why your telling me this?

I don't think I wrote anywhere that I'd be paying in another £500 in the same month?

I'd just be paying the £500 in monthly on say the 15th of each month.

TickersPlaysPop

I have a 123 account and have done for yrs withth full 20k in there and council tax, phone, water etc all being paid from it and I collect all the benefits.

I did however, ask this broad question on this forum at the time I opened the account, " how can this bank can offer such a high interest rate, so much higher than all the other banks.?"

From my limited understanding and over simplified view point, I could see Spain is a struggling economy, seriously struggling, with roads empty etc.... also talk of Greece, Spain, Italy at risk over leaving the EU.

To me it is simple, there is something going on here to bolster the Spainish bank, which is technically separate, but come on! Really?!

If the EU goes pop and Greece, then Spain etc all leave the Santander mother company will fail.... and I am sure this would have implications for the UK santander accounts. All protected, but in extreme conditions could get your money tied up for a number of mths with the bank locking up assets.

So I think Santander have been sucking in the UK banking market to create a too big to fail situation, to cover themselves.

badger09

dburford9 wrote: »

I understand that.

Though I'm not sure why your telling me this?

I don't think I wrote anywhere that I'd be paying in another £500 in the same month?

I'd just be paying the £500 in monthly on say the 15th of each month.

You might be surprised by the number of inexperienced 'multi accounters' who mistakenly believe they have to fund a new account with the minimum monthly fund requirement of say £500, in addition to their opening deposit of say £20000.

It wasn't clear from your post when you intended to pay the £500.
However, I apologise for having wasted your time.