123 account without a job?

6397

Hi! I'm 18 years old and have £28,000~ in savings. My current account currently pays less than 0.5% in interest, which is abysmal. I'm really interested in the 123 current account with Santander (I'm already with them, just on a terrible account), as I'd get over £500 a year in interest even after fees.

I don't have a job and I'm not in education, but I receive over £500 a month as gifts from my dad and fiance, usually £600-900, although I spend 70%+ of it, so I don't "net" £500 a month, does this mean I still fulfil the "fund the account with £500 a month" requirement? Also, I don't pay bills, so I have no direct debits. I'm on PAYG, not pay monthly for my mobile, too. What could I do to create 2 direct debits, and how much do they have to be?

Finally, if I AM eligible for the 123 account, do Santander require me to create the 2 direct debits before applying for the 123 current account, or do you do it in your first month? It's all so confusing :j

Have a nice evening and thanks in advance :beer:

eskbanker

6397 wrote: »

I receive over £500 a month as gifts from my dad and fiance, usually £600-900, although I spend 70%+ of it, so I don't "net" £500 a month, does this mean I still fulfil the "fund the account with £500 a month" requirement?

Yes, the funding requirement is to pay £500 in every month, it doesn't matter what happens to it after that.

6397 wrote: »

I don't pay bills, so I have no direct debits. I'm on PAYG, not pay monthly for my mobile, too. What could I do to create 2 direct debits, and how much do they have to be?

Charities, subscriptions, or some savings accounts (e.g. Tesco) can be used to pull funds in by direct debit, i.e. you're effectively paying yourself.

6397 wrote: »

Finally, if I AM eligible for the 123 account, do Santander require me to create the 2 direct debits before applying for the 123 current account

No.

6397 wrote: »

or do you do it in your first month?

Yes.

6397

eskbanker wrote: »

Yes, the funding requirement is to pay £500 in every month, it doesn't matter what happens to it after that.

Charities, subscriptions, or some savings accounts (e.g. Tesco) can be used to pull funds in by direct debit, i.e. you're effectively paying yourself.

No.Yes.

Thank you so much for the fast & helpful reply! :T

NectarCollector

The interest is added monthly (on anniversary of the account opening) but don't forget to subtract the £5 monthly fee starting February.

Its possible to earn considerably more interest if you spread your money around accounts that pay 5% interest up to the maximum amounts that they pay interest on and then have Standing orders to shift the money around in a circle between the accounts to meet the minimum pay in amounts, possibly change some DD to come out from other accounts to meet any minimum DD requirements.

where_are_we

On a similar theme - my son is on Employment and Support Allowance and has a Nationwide Flexaccount and a couple of thousand in an Nationwide ISA paying 1.5%. What are his chances of being accepted for a FlexDirect account, while he is uinemployed, and thus be able close his ISA and transfer this money and earn 5%. I can help him fund the £1000 a month .
If he is not eligible is it worth him applying for a TSB classic current account to get the 5% that way. Has anyone on benefits been able to get a high interest current account?

Futuristic

where_are_we wrote: »

On a similar theme - my son is on Employment and Support Allowance and has a Nationwide Flexaccount and a couple of thousand in an Nationwide ISA paying 1.5%. What are his chances of being accepted for a FlexDirect account, while he is uinemployed, and thus be able close his ISA and transfer this money and earn 5%. I can help him fund the £1000 a month .
If he is not eligible is it worth him applying for a TSB classic current account to get the 5% that way. Has anyone on benefits been able to get a high interest current account?

There should be upgrade option on his online banking, if he's had the account for a while and his history is fine he'll most likely be accepted. There's no really guarantee as we don't know if TSB etc require you to have some sort of source of income for them to accept people or just a clear history.

colsten

I know of no current account terms and conditions that stipulate

1. that you must be employed
2. that you have to have a minimum income of any sort

People often confuse the minimum monthly deposit requirements with needing a certain amount of income from a job.

This won't stop banks from asking during the application for details of any employer and salary and other personal information. I haven't been employed for over 10 years now and have opened some 20-odd current accounts in that time.

where_are_we

Thanks - I will tell him to give it a try and let everyone know how he got on.

Eco_Miser

where_are_we wrote: »

... has a Nationwide Flexaccount and a couple of thousand in an Nationwide ISA paying 1.5%.
I can help him fund the £1000 a month .

Once he's moved that couple of thousand. he doesn't need your help with the £1k pm - he just needs to move a thousand out and in again.

Mrs_Ryan

colsten wrote: »

I know of no current account terms and conditions that stipulate

1. that you must be employed
2. that you have to have a minimum income of any sort

People often confuse the minimum monthly deposit requirements with needing a certain amount of income from a job.

This won't stop banks from asking during the application for details of any employer and salary and other personal information. I haven't been employed for over 10 years now and have opened some 20-odd current accounts in that time.

Halifax tried to claim to me that anyone not working would only be eligible for an EasyCash to which I said to them how come my parents whose only incomes are State Pension and DLA have a Reward account.... Funny enough they had no reply to that (both of them were retired when they opened the account, they didn't have employment income) I think HSBC were another one that used to only allow a cash card account if you weren't employed as before mum was with Halifax she enquired and they said they would only allow her a cash card account which given she had a large loan, a Visa card with a hefty limit and a Maestro card with Yorkshire Bank she obviously declined and went to Lloyds who gave her platinum credit and debit cards and a big overdraft.
I think some banks are fussier than others- Lloyds are the only one I've found that will give me a proper account.

6397

colsten wrote: »

I know of no current account terms and conditions that stipulate

1. that you must be employed
2. that you have to have a minimum income of any sort

People often confuse the minimum monthly deposit requirements with needing a certain amount of income from a job.

This won't stop banks from asking during the application for details of any employer and salary and other personal information. I haven't been employed for over 10 years now and have opened some 20-odd current accounts in that time.

Thanks for the info, hopefully they're not too bothered that I haven't got a job as I've been putting in over £500 a month for over 2 years now