Santander 123 Current Account for Savings?

missile

I would suggest he meant £2,000 with TSB plus £2500 with NW giving 5% return on £4500. Two accounts at Tesco, i.e. 3% on £3000 X 2

ZacharyJohn

Of course, thanks missile - should've worked that one out!

jimjames

missile wrote: »

I would suggest he meant £2,000 with TSB plus £2500 with NW giving 5% return on £4500. Two accounts at Tesco, i.e. 3% on £3000 X 2

Spot on, sorry for the confusion. It's hard to type so much text on a phone!

So yes

TSB £2000
Nationwide £2500
Tesco 1 £3000
Tesco 2 £3000
then
Lloyds £5000

savings_my_hobby

ZacharyJohn wrote: »

Thanks for all the replies, guys.

After reading the 'How to Start Saving' article that recommends maxing out the interest on a current account before moving onto any other savings strategies, it seems that for the amount I have at the moment (a little under £2,000) getting a TSB Classic Plus account would be best (5% on the first £2,000 and £100 to switch) before moving to the Santander 123 in a couple of month's time when I have over £3,000.

Does that seem plausible?

You can get a TSB account, you should keep the money in the TSB account has it has one of the best rates, but make sure you can deposit £750 per month, every month, if not you wont receive interest

jimjames

savings_my_hobby wrote: »

You can get a TSB account, you should keep the money in the TSB account has it has one of the best rates, but make sure you can deposit £750 per month, every month, if not you wont receive interest

Unfortunately that's not correct. It's £500 but don't take my word, check the t&cs with tsb.

badger09

jimjames wrote: »

Unfortunately that's not correct. It's £500 but don't take my word, check the t&cs with tsb.

Absolutely agree.

Also, paying in £500 per month is not the only condition which needs to be met to get 5% interest.

So OP - you must read, understand, and comply with the official T&C of any account mentioned here. Don't rely on the opinions of well meaning strangers on the internet. Myself included

ZacharyJohn

Yeah, I've had a look and in order to get the 5% interest with TSB, you need to pay in £500 per month, register for Internet banking and register for paperless Statements and paperless Correspondence.

Once that account's got £2,000 in it, I'll probably go on to set up an account with Nationwide as well (5% on £2,500) but one of the terms is paying in £1,000 per month. I was wondering whether I could 'bounce' the money between my TSB account and the Nationwide account, i.e. pay in £500 to Nationwide, transfer it to TSB, then transfer it back to Nationwide?

Would that still count?

badger09

ZacharyJohn wrote: »

Yeah, I've had a look and in order to get the 5% interest with TSB, you need to pay in £500 per month, register for Internet banking and register for paperless Statements and paperless Correspondence.

Once that account's got £2,000 in it, I'll probably go on to set up an account with Nationwide as well (5% on £2,500) but one of the terms is paying in £1,000 per month. I was wondering whether I could 'bounce' the money between my TSB account and the Nationwide account, i.e. pay in £500 to Nationwide, transfer it to TSB, then transfer it back to Nationwide?

Would that still count?

Yes it would

System

Interested on which direct debits qualify for the interest on the 123 account.

Example i move abroad but switch address to a family member in the UK. I lose all my direct debits except for my credit card DDs.

Anyone know if only having 2 direct debits for my CC accounts will qualify me for the 3% APR?

Thanks as always.

Archi_Bald

mxhoward84 wrote: »

Interested on which direct debits qualify for the interest on the 123 account.

Any 2 DDs that show on your account will suffice (alongside the minimum monthly deposit and paying the monthly account fee).