Multiple santander123 accounts

steadings

I am considering opening a 123 account and investing the full £20,000. I can pay in the required £500/month.
My question is, can I and my wife open one each and also a third joint one, each with the full £20k, split various direct debits so there are 2 in each account then set up standing orders to transfer £500 from one to the other and then to the third.
Or is there a better way to invest £60k with easy access?

kangoora

steadings wrote: »

I am considering opening a 123 account and investing the full £20,000. I can pay in the required £500/month.
My question is, can I and my wife open one each and also a third joint one, each with the full £20k, split various direct debits so there are 2 in each account then set up standing orders to transfer £500 from one to the other and then to the third.
Or is there a better way to invest £60k with easy access?

I think transfers between 123 accounts don't count - but you could bounce a payment out to another bank and then bounce it back into a different 123, rinse and repeat

ceredigion

Q1 Yes
Q2 Yes and no

xylophone

The 123 Account - see http://www.santander.co.uk/uk/current-accounts/123-current-account re funding.

http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

ceredigion

kangoora wrote: »

I think transfers between 123 accounts don't count - but you could bounce a payment out to another bank and then bounce it back into a different 123, rinse and repeat

Not strictly correct


"
MonthlyFundingrequirements
You must pay at least £500 into your account every month. This is not a calendar month, it is the monthly anniversary from the date you opened/transferred your account. The £500 minimum monthly payment does not include refunded amounts from your Visa Debit card or amounts transferred into the account from another Santander account in your name (including any joint accounts). Transfers in from a Santander Business Account do count towards the minimum £500 payment."

oldfella

you can transfer between 123 accounts where the name is different

steadings

Thanks all.
So then Pay in £500/month to Santander Acc 1 open a TSB Clasic Plus With £2000 balance and use this to "bounce back and forward" £500 to the Santander accounts ending up in the TSB to spend using the credit card to get the 5% cashback on the first £100 spent and get also 5% on the £2000 balance?

Life was so much simpler years ago with decent interest rates for savers!!

Futuristic

steadings wrote: »

Or is there a better way to invest £60k with easy access?

There is but requires a lot more accounts, 123 would be easy option to simplify amount of accounts.

http://www.bankaccountsavings.co.uk/

YorkshireBoy

steadings wrote: »

Thanks all.
So then Pay in £500/month to Santander Acc 1 open a TSB Clasic Plus With £2000 balance and use this to "bounce back and forward" £500 to the Santander accounts ending up in the TSB to spend using the credit card to get the 5% cashback on the first £100 spent and get also 5% on the £2000 balance?

Life was so much simpler years ago with decent interest rates for savers!!

Better option:


Open 3 TSB Plus accounts (one each and a joint). After all, 5% is better than 3%!
Internally fund these 3 at TSB (£500 from 1>2>3>1)
Cross fund the 2 new sole Santander accounts with £500


Then all you have to do is carry on funding the joint 1-2-3 account as you are doing now.


So after setting up there's no more 'work' than you're doing already!


Sometimes it's hard to see the wood for the trees.

steadings

YorkshireBoy wrote: »

Better option:


Open 3 TSB Plus accounts (one each and a joint). After all, 5% is better than 3%!
Internally fund these 3 at TSB (£500 from 1>2>3>1)
Cross fund the 2 new sole Santander accounts with £500


Then all you have to do is carry on funding the joint 1-2-3 account as you are doing now.


So after setting up there's no more 'work' than you're doing already!


Sometimes it's hard to see the wood for the trees.

Thanks. Should be able to get about 3.25% on the £66000 investment allowing for the £15/m fees (January) and about £10/m cashback from Santander.

And yes many trees.

enthusiasticsaver

As others have said you will need to fund the Santander 123 account from other sources of income unless the other Santander accounts are in different names so your account could fund your OH and vice versa. I have two Santander 123 accounts which are funded by my and OH salaries rather than transfers - our joint one is funded by OH salary and I have a sole one with my salary paid in. We then do a merry go round transfer to Nationwide flex direct and TSB classic and from there fund regular saver accounts which all earn 5%. You can split £60k between other accounts and earn more than the 3% you get from Santander but not without a lot of accounts. Don't forget the fees on the Santander 123 accounts go up to £5 from January so make sure you put as many direct debits which earn cashback to those accounts as possible to offset the fees.