Maintaining Santander 123 with Redundancy Payout

Dagadog

I've been made redundant from my current job. I'm using the money to give myself a bit of a career break, but I hope to be working again by Christmas (or perhaps before). I have a Santander 123 current account, which has been generating a small amount of interest and cashback..

I know the account only pays interest if you deposit £500 per month (excluding internal transfers. If I move money out of the account when the lump sum gets paid, and then move £500 back every month to keep the interest coming in does that still qualify?

If it does, can you recommend an account into which I can move the money where it might earn a small amount of interest while it's there?

Archi_Bald

Dagadog wrote: »

I know the account only pays interest if you deposit £500 per month (excluding internal transfers. If I move money out of the account when the lump sum gets paid, and then move £500 back every month to keep the interest coming in does that still qualify?

it sure does, as long as it goes to a non-Santander account. Or you could withdraw cash and deposit it again straight away.

Dagadog wrote: »

If it does, can you recommend an account into which I can move the money where it might earn a small amount of interest while it's there?

you don't need to leave the money out for more than a second but swapping £500 with a TSB Plus could be of use as it pays 5% on up to £2K. Try this for a more complete picture.

Dagadog

That's fantastic... Oh and I've just discovered my mortgage PPI doesn't cover redundancy. Guess what's next on the todo

Dobbibill

Depending on how much you want to revolve - to maximise your earning you could also set up a Halifax Reward account (£5pcm reward for paying in £750 pm and paying 2 DD's from it)

A SO should do the trick with £750 going from
>>Halifax to Santander
>>Santander to TSB
>>TSB to Halifax

you would need the DD's on Halifax & Santander, you would need to be paperless for TSB - move the DD's that would not give you cashback with Santander (I believe TV licence is one)
This would equal £5 Halifax, £6.50 TSB (approx if full with £2k) & 3% Santander (if over £3k)
It's not going to make you a millionaire over night but for little effort it will give you £60 more pa.

HTH

plunt

sounds like you want to keep things simple so i would do the following...

Set up a 5% TSB account as others have mentioned, but also set up a online tesco savings accounts.

Set up 2 direct debits on the tesco savings account to deduct from the tsb account. ideally i would make them for the interest amount ( so 2k @ 5% /12 months *.8 (tax)= 6.66, so set one up for 3 pounds the other for 3.66. Then set up a standing order from santander to the TSB account for £500 and another standing order from TSB to santander for £500. Keep a balance of 2k in the TSB account and ensure you always keep atleast 3k in the santander account.

The direct debits and standing orders should all be set up to repeat monthly. be careful as to when your santander interest payment date is and set up the standing orders and direct debits a little further away from them , but not at the very end or start of any month either, this will avoid you accidentally not qualifying for interest if dates fall over the weekend.

goodluck !

bsms1147

plunt wrote: »

sounds like you want to keep things simple so i would do the following...

Set up a 5% TSB account as others have mentioned, but also set up a online tesco savings accounts.

Set up 2 direct debits on the tesco savings account to deduct from the tsb account. ideally i would make them for the interest amount ( so 2k @ 5% /12 months *.8 (tax)= 6.66, so set one up for 3 pounds the other for 3.66. Then set up a standing order from santander to the TSB account for £500 and another standing order from TSB to santander for £500. Keep a balance of 2k in the TSB account and ensure you always keep atleast 3k in the santander account.

The direct debits and standing orders should all be set up to repeat monthly. be careful as to when your santander interest payment date is and set up the standing orders and direct debits a little further away from them , but not at the very end or start of any month either, this will avoid you accidentally not qualifying for interest if dates fall over the weekend.

goodluck !

Wouldn't it be simpler to forgo the direct debits entirely, and allow the interest to accumulate in the TSB accounts. Granted you won't benefit from the compound interest over the year that your method uses (40p...), but it would be simpler.

Better yet set the standing order from the TSB to include the interest amount.

plunt

true it would be simpler, my only hesitation on that would be some people on the forums have reported some of their accounts getting closed down, so thought it would make it look like more of an active account.

on top of that i forgot TSB didnt require direct debits the MSE incentive required it though, hence the confusion

colsten

plunt wrote: »

true it would be simpler, my only hesitation on that would be some people on the forums have reported some of their accounts getting closed down, so thought it would make it look like more of an active account.

I think there are many, many more people who operate multiple accounts without any problems than there are people who get their accounts closed, allegedly for multi-accounting.

plunt wrote: »

on top of that i forgot TSB didnt require direct debits the MSE incentive required it though, hence the confusion

any number of DDs are very easy to set up. Have a route round the forum and ye shall find.

badger09

colsten wrote: »

I think there are many, many more people who operate multiple accounts without any problems than there are people who get their accounts closed, allegedly for multi-accounting.

any number of DDs are very easy to set up. Have a route round the forum and ye shall find.

The least you could do is provide a map

colsten

badger09 wrote: »

The least you could do is provide a map

Lozzed de map, together wif me OED an Thesaurus.