Santander 123 Current Account- Interest in first month

Dragonfly1

So I opened a Santander 123 Current Account on around the 10th of August and immediately payed in a large sum of money.

At the same time, I swapped two direct debits over, that are monthly.

Because of the time required for a direct debit to actually change, I set up the mandate but the first actual moneys withdrawn will be this month, September.

I feel a little cheated that I had my money in there for over 3 weeks - happy to pay the £2 fee - swapped two active direct debits - but was paid no interest.
I believe other banks have a grace period for this? I know it's not the end of the world but it still leaves a sour taste in my mouth when surely they know lots of people will have this problem in their first month.


EDIT: Interestingly their website states "Remember, if you switch your current account to us, we'll move it across in 7 working days, so you can start earning cashback and interest.". So whilst I did not use the current account switching service, it still infers that providing you move everything across (i.e. transfer the direct debits), I can start earning interest. Yet I couldn't start earning interest until this month so it seems.

SuperAllyB

Interest is paid on the "monthiversary" of account opening, so you may yet receive interest.

Edited to add: My account was opened on the 8th, first DDs paid on the 23rd then 3rd of following month, interest received on 10th.

Dragonfly1

SuperAllyB wrote: »

Interest is paid on the "monthiversary" of account opening, so you may yet receive interest.

Oh I didn't know this Although I think the Tesco Direct Debit may be dated after the month anniversary unfortunately, but that is more my fault than theirs as I just thought the middle of the month is the best as that is what I had known from other banks.

gt94sss2

As SuperAllyB says, interest on 123 accounts is paid on the anniversary of the date the account was opened - not a calender month.

Also, with Santander the direct debit just needs to be registered against the account to qualify - they doesn't need to collect any money from your account.

Regards
Sunil

Dragonfly1

Brilliant.

Thanks to both of you.

badger09

gt94sss2 wrote: »

As

Also, with Santander the direct debit just needs to be registered against the account to qualify - they doesn't need to collect any money from your account.

Regards
Sunil

They do actually 'need to collect money from your account' at least once a year, otherwise they are likely to lapse. However, the DDs don't need to pay every month