Santander 123 no interest earned this month !!!

hubb

I have been earning steady interest in my 123 account for a couple of years but this month with just over 8K still in my account my statement reads no interest earned in the last 31 days !!! I am awaiting response from them but has anyone else had this issue ? Cashback is still earning though.

YorkshireBoy

Did you credit £500 within the statement month?

Do you still have at least 2 DDs set up on the account?

hubb

Yes, I have more than 2 direct debits and made a payment into my account above the minimum on 3rd Nov. The last deposit before that was 9th Sept so it looks like I overshot a payment by 3 days. Bummer

grumbler

hubb wrote: »

...made a payment into my account above the minimum on 3rd Nov. The last deposit before that was 9th Sept so it looks like I overshot a payment by 3 days. Bummer

Not necessarily 3. It's a statement month, not calendar.

chris_m

I was a bit concerned this month (my 2nd month on the 123) because I'd set my SO transfers between several banks to the 22nd then found out that my "anniversary month" date is the 23rd and the 22nd was a Sunday this month. Unfortunately, I was away and unable to do anything about it in time. However, all SO transfers, cashback credit and interest credit went through OK on the 23rd, phew.
Now I know my anniversary date, I've changed the dates on all the SO transfers to a week earlier.

jimjames

hubb wrote: »

Yes, I have more than 2 direct debits and made a payment into my account above the minimum on 3rd Nov. The last deposit before that was 9th Sept so it looks like I overshot a payment by 3 days. Bummer

Is it worth arranging an SO in and out each month so you don't miss one?


For £8k you can probably get much better returns than the 123 now the fee is £5 if you are prepared to make some efforts.

savings_my_hobby

jimjames wrote: »

Is it worth arranging an SO in and out each month so you don't miss one?

definitely, id probably set up an SO twice per month if this happened to me

hubb - if you have two "spare" direct debits then consider halifax reward. £60 per year without tying up cash as you only need at least £1 in the account and pay in £750 per month (and 2 dd's)

hubb

savings_my_hobby wrote: »

definitely, id probably set up an SO twice per month if this happened to me

hubb - if you have two "spare" direct debits then consider halifax reward. £60 per year without tying up cash as you only need at least £1 in the account and pay in £750 per month (and 2 dd's)

Oh yes I already have the Halifx reward account. I always send my money through that before it gets to Santander.

I am curious to know what better interest rate I will get on 8k other than Santander. Reading Martin's blog it seems even with the £5 fee it still works out the best.

YorkshireBoy

hubb wrote: »

I am curious to know what better interest rate I will get on 8k other than Santander. Reading Martin's blog it seems even with the £5 fee it still works out the best.

You'd need more than one account, which is why jimjames said "if you are prepared to make some efforts".

(all figures are annual)

Using Santander, you're making:

£8,000 x 3% x 0.8 = £192 after BR tax
Less your £5 fee is £132 (although some of this £60 will be offset by your DD cashback)

Using Club Lloyds (4% AER) and TSB Plus (5% AER), £7K of your £8K would make:

£5,000 x 3.93% x 0.8 = £157.20
£2,000 x 4.89% x 0.8 = £78.24

...giving a total of £235.44 after BR tax

You may be thinking "I have £8K. What about the other £1K?". Well you'd get that into regular savers with TSB (5%) and Lloyds (4%) after just 2 months. You're now making more than 4% AER on all your savings...an increase of over 30%.

joe134

hubb wrote: »

Oh yes I already have the Halifx reward account. I always send my money through that before it gets to Santander.

I am curious to know what better interest rate I will get on 8k other than Santander. Reading Martin's blog it seems even with the £5 fee it still works out the best.

£7k is about the break even point where you will still be as well off as other Ac's.
Below this, you would be better off in other Ac.s
How ever, for me, I have 3 San 123, the advantage of the freedom to add up to £20k, without opening a couple of Ac's makes holding onto the 123 Ac , even with the higher charges.
Just my opinion.Others may differ.There's no hard fast rule.
My 3 Ac's only have £5k in at present, BUT, I know I will be topping them up pretty soon.
YB's given you other options.all good

Futuristic

joe134 wrote: »

£7k is about the break even point where you will still be as well off as other Ac's.
Below this, you would be better off in other Ac.s
How ever, for me, I have 3 San 123, the advantage of the freedom to add up to £20k, without opening a couple of Ac's makes holding onto the 123 Ac , even with the higher charges.
Just my opinion.Others may differ.There's no hard fast rule.
My 3 Ac's only have £5k in at present, BUT, I know I will be topping them up pretty soon.
YB's given you other options.all good

Doesn't make sense if you only have £5k in them especially after the monthly fee.

You have bank of scotland vantage where you can open 3 accounts for yourself with £5k each getting 3% interest and you just setup standing order for monthly pay in between the 3 accounts as internal transfers are counted.

Tesco has no requirements and max 2 accounts for yourself with £3k @ 3%

Would much rather have Lloyds as the "main" bank where you can keep your regular income into which would earn interest up-to £5k