Santander 123 question

Alter_ego

lynnejk wrote: »

Hiya


Hope you don't mind if I jump in ?


Why not open one or two TSB accounts ? They require the same minimum £500 a month pay-in and pay 5% interest up to £2000. You can run and organise it all on-line.


You can then bounce the monies around to your heart's content
HTH


Lx

Simple answer, TSB will not pay interest on £20k

Archi_Bald

Alter_ego wrote: »

Simple answer, TSB will not pay interest on £20k

It is the best game in town if you are just looking for an account that can swap £500 with a Santander 123 once a month.

Alter_ego

Archi_Bald wrote: »

It is the best game in town if you are just looking for an account that can swap £500 with a Santander 123 once a month.

Agreed, but already set up with pension payments etc going from everyday account to 123s. Really just considering simplifying the Santanders, ie Leaving them alone to swap back and forth without complicating my other accounts
Perhaps TSB is the way to go when some bonds mature next year

lynnejk

Alter_ego wrote: »

Simple answer, TSB will not pay interest on £20k

I thought the original question was how to find a way to input £500 into more than one Santander account.


By having TSB accounts the problem is solved.


Once you have over £3000 in Santander accounts at 3% you are gaining with the TSB accounts as accounts pay 5%


Lx

colsten

lynnejk wrote: »

Once you have over £3000 in Santander accounts at 3% you are gaining with the TSB accounts as accounts pay 5%

TSB pay 5% even if you don't have £3K in a 123...........in fact, there is a whole bunch of accounts that pay more interest than a 123, including those 3% ones that do not have a monthly charge.

SeduLOUs

colsten wrote: »

TSB pay 5% even if you don't have £3K in a 123...........in fact, there is a whole bunch of accounts that pay more interest than a 123, including those 3% ones that do not have a monthly charge.

Correct, but the 1-2-3 tiers do come into play sometimes when you can't fill all of the accounts. For example if you have £4,500 to 'save':

Option A: £2k @ 5% in TSB, £2.5k @ 2% in Santander
Option B: £1.5k @ 5% in TSB, £3k @ 3% in Santander

Option B will earn more, despite not maximising the 'higher rate' TSB account...

colsten

SeduLOUs wrote: »

Correct, but the 1-2-3 tiers do come into play sometimes when you can't fill all of the accounts. For example if you have £4,500 to 'save':

Option A: £2k @ 5% in TSB, £2.5k @ 2% in Santander
Option B: £1.5k @ 5% in TSB, £3k @ 3% in Santander

Option B will earn more, despite not maximising the 'higher rate' TSB account...

If I couldn't fill all the other accounts first, I wouldn't even begin to look at the 123! The other accounts take care of some £30,000, never mind a mere £4,500. I can't believe the obsession some people have with the 123, which pays almost the least of all the current accounts.

SeduLOUs

colsten wrote: »

If I couldn't fill all the other accounts first, I wouldn't even begin to look at the 123! The other accounts take care of some £30,000, never mind a mere £4,500. I can't believe the obsession some people have with the 123, which pays almost the least of all the current accounts.

Until recently I only had the Santander, and only around a £4k average balance. Yes, I could have made more in interest in TSB etc but was making a very decent amount on the cashback with the 123 that made it worthwhile.

With fees going up and me having reduced some of my outgoings that has in turn reduced some of my cashback, we have now opened two TSB accounts (filled) and have Santander at 3% for the rest (now have a bit more than £4k!) and still making enough cashback for it to be remain worthwhile for the time being at least.

colsten

With £4K, you could have made more if you had had a couple of Tesco current account, for instance. You could still have used Santander for the cashback in parallel.

ceredigion

colsten wrote: »

With £4K, you could have made more if you had had a couple of Tesco current account, for instance. You could still have used Santander for the cashback in parallel.

Or even a club Lloyds