Santander 123 - Do I get interest without active Direct debits?

littlewillow87

I switched to Santander last month and sent all my savings to Santander (about 10k). I set up 2 DDs (mobile phone bills) however for some reasons the DDs didn't go through
(I only realised it yesterday and had to pay the outstanding bills through the phone).

Because the DDs were not successful, does it mean I wouldn't get the interest on £10k? I've just checked the account and no interest is paid. I also haven't been charged £2 for the monthly account fee.

Could someone advise Which day normally the interest and £2 charge happen?

littlewillow87

the conditions are:

• Pay a monthly account fee of £2.
• Fund the account with £500 a month (excludes internal transfers). A minimum balance of £1,000 is needed to receive interest.
• Set up at least 2 Direct Debits. You'll get monthly cashback on selected household bills you pay by Direct Debit

So I thought I would receive the interest as long as I have min balance of £1k and fund the account with £500?

YorkshireBoy

littlewillow87 wrote: »

Could someone advise Which day normally the interest and £2 charge happen?

Your account T&Cs "advise" on payment dates.

The fee is covered in condition 3, and the interest is covered in condition 5.1

http://www.santander.co.uk/csdlvlr/ContentServer?c=SANDocument_C&pagename=WCSUKPublicaLte%2FSANDocument_C%2FSANDocumentPreview&cid=1324575553949

Horizon81

With regards to the original question, I'm wondering the same. The criteria states:

Set up at least 2 Direct Debits. You'll get monthly cashback on selected household bills you pay by Direct Debit

But some bills (e.g. Council tax, Water) are paid in 10 instalments per year, not 12. So... do you still get the interest if the DD is active but not
actually making a payment every month?

Archi_Bald

Do the Santander T&Cs state that the DDs must pay monthly?

Katiehound

Horizon81 wrote: »

With regards to the original question, I'm wondering the same. The criteria states:

Set up at least 2 Direct Debits. You'll get monthly cashback on selected household bills you pay by Direct Debit

But some bills (e.g. Council tax, Water) are paid in 10 instalments per year, not 12. So... do you still get the interest if the DD is active but not
actually making a payment every month?

If it is any help to you... in the future.... you can pay your council tax in 12 monthly instalments, it's hidden away in the small print! (Well in our bills anyway.) You just phone at the start of the tax year.... but worth enquiring now. My local council said that it reverted to 10 at the end of the year but they hoped there would be an automatic over ride.

I know when Halifax & Lloyds brought in new regs that stipulated 2 x DDs per month there were various suggestions such as online savings a/c with Tesco @ £1 per month!

Alter_ego

Direct debits do not have to pay out, merely be set up.
I get interest even though one of my DDs is annual and has never paid out.
If you do online banking check whether your DDs are set up

Sipowicz

I've had the 123 account for over 4 years, they've never levied the £2 monthly fee, I haven't queried why!

eastofeden

Yes, but are you receiving interest on the account?

colsten

Alter_ego wrote: »

Direct debits do not have to pay out, merely be set up.
I get interest even though one of my DDs is annual and has never paid out.

Remember that under the DD dormancy rule, DDs that have not paid out in the last 13 months can be cancelled by the bank without notice.

Sipowicz

Am I receiving the interest? Oh yes, £50 plus every month!