Santander 123 after a DMP

GibbsRule_No3

I finished a DMP two years ago. I now have a large amount of money saved from the monthly payments, that I now don't pay to the DMP. I would like to open a 123 account by moving my basic Co-Op account has anyone tried this and either been accepted or refused? Happy to have only a debit rather than credit card, just hoping to get some interest from the savings and the monthly pay that would be going in, rather than have it sit in account that does not pay much.

grumbler

GibbsRule_No3 wrote: »

... Happy to have only a debit rather than credit card,....

What do you mean?

Re applying, I would say just apply and see - you don't have much to lose. One credit search isn't a big deal. Possibly, it's worth applying for a more basic account and then trying to upgrade it.

Are your savings really that 'large' to justify paying the monthly fee? For smaller amount you can consider Tesco with the same 3%.

Kim_13

I assume the OP means happy to have a cash card (as they will be used to that with thw Co-Op Basic) rather than a debit card, but as the S123 is a full current account, this would not be possible.

As grumbler says, you don't have much to lose by applying except one credit search going onto your file. Unless you wanted to try changing utility suppliers in the near future, then it's a non-issue (as I doubt you'll be trying to get a mortgage, loan, credit card or something else that you'll need your credit file for.) If they decline you, you can ask for Santander's basic account (if they don't offer it automatically) and run that well to build up an internal history. In time, they should then be prepared to extend the 123 to you.

Bear in mind the monthly account fee of £5, so given the tiered interest, you'll need 3k in it (to qualify for 3% interest) to make a profit on the account. Of course, if you have household bills that can earn cashback, then you may be in profit on less. There is a calculator on the Santander website.

If you're purely after the interest, then Tesco offer the 3% on up to 3k for free with no monthly funding requirement (2 accounts allowed, if approved.) They are apparently a bit less picky than the high street banks.

There's also Club Lloyds offering 4% and TSB 5%, but both have funding requirements and don't offer interest on as high a balance as S123, so it's up to you what you want to try.

GibbsRule_No3

£25,000 and the pay going in per month with the DDs coming out would I believe negate the fee. I meant if they said I could have a debit card for the account, rather than a credit card it would be okay, I also don't need an overdraft limit.

grumbler

GibbsRule_No3 wrote: »

£25,000

Then you need more accounts if you want to get interest on full £25K. If you get s123, don't forget at least to open their regular saver 12x£200 paying 5%.

I meant if they said I could have a debit card for the account, rather than a credit card it would be okay,

Current accounts never come with credit cards. It's either a debit card or a cash card.

Kim_13

Asking for no overdraft will minimise the impact on your credit file and may make it slightly more likely that you'll be accepted, however they will still need to credit search you whether you want an overdraft or not. This is because full current accounts have the potential to go into unauthorised overdraft, which they need to be satisfied that you would repay if it happened.

With 25k, Santander is the best way to go to get interest on the majority of the money with a single credit search (20k + regular saver - £2,400 over the year.)

GibbsRule_No3

Thanks for the replies, hopefully I just need to pluck up the courage to go and ask. I got a mobile monthly phone at the end of last year and was worried that would be declined but no problem. Until I finished the DMP I never had money but now it just seems a waste not trying to get interest on it.

colsten

You don't need to go and ask - - just apply online. They'll do the same credit check online and in Branch.

banksofthe_mersey

heres a question i just opening the santander 123 accounts 1 for me an 1 joint 1, now my wage goes in 1 of them, now? does money from betting accounts count towards the 500 quid to get the interest..to get the interest i have to fund the account with 500 each month.
thanks.

colsten

Any deposit from an external account will count towards the monthly £500. You also need 2 DDs in order to earn interest.

banksofthe_mersey

yes i knowa bout 2 dds, i knew external accounts was the buzzword, but thought a betting account wasnt classed as an account as such..thanks anyways.