Santander 123 - Too much hassle or not that bad really?

molerat

sevenonine wrote: »

So I'd have to withdraw cash from my e-saver account and pay it into the new 123 account - at a branch - and this would have to be done physically every month? - this is not feasible, involving time and travel.

Or the alternative is to use one of my other external accounts to pay by standing order £25? I'd have to open a new, external account, paying poor returns, just to pay by this means.

I can't understand how you could withdraw say £500 from an external account to pay into the Santander account, then withdraw it from the 123 account to pay it back to the external account - if that is what seems to be discussed in this forum! Surely the money has to sit in one account to earn interest?

Or perhaps I'm being dense!

The money stays in the transfer accounts only as long as it takes to switch tabs on my computer. It takes me about 5 minutes to do them all. If your external accounts are set up for FP then all you need to do is move £500 from the 123 and straight back again.

bigfreddiel

sevenonine wrote: »

So I'd have to withdraw cash from my e-saver account and pay it into the new 123 account - at a branch - and this would have to be done physically every month? - this is not feasible, involving time and travel.

Or the alternative is to use one of my other external accounts to pay by standing order £25? I'd have to open a new, external account, paying poor returns, just to pay by this means.

I can't understand how you could withdraw say £500 from an external account to pay into the Santander account, then withdraw it from the 123 account to pay it back to the external account - if that is what seems to be discussed in this forum! Surely the money has to sit in one account to earn interest?

Or perhaps I'm being dense!

You are being dense

All you need to do is pay in £500 from another account, as long as it isn't a Santander account.

Do this with a never ending monthly standing order.

Move out £500 from Santander to a non Santander account

Move in £500 to Santander from non Santander account

Repeat each month

How hard is that!

LXdaddy

sevenonine wrote: »

I can't understand how you could withdraw say £500 from an external account to pay into the Santander account, then withdraw it from the 123 account to pay it back to the external account - if that is what seems to be discussed in this forum! Surely the money has to sit in one account to earn interest?

Or perhaps I'm being dense!

Yes physically visiting the branch to do the transactions in cash is too much like hard work. hat's why most of us use either standing orders or faster payments to move the money around.


You say that you have 15K you can move. If you put that 12.5K into the Santander 123 account and 2.5K into a Tesco current account both will earn 3% and you can set two standing orders up one on each account to pay £500 into the other on a date which is 5 or more days away from your 123 "monthiversary". In that way you alwayd have the 15K earning interest even when £500 is in "the other" account.


Edit... Doh - caught bey the post at the bottom of the page already replied to problem again

bigadaj

sevenonine wrote: »

So I'd have to withdraw cash from my e-saver account and pay it into the new 123 account - at a branch - and this would have to be done physically every month? - this is not feasible, involving time and travel.

Or the alternative is to use one of my other external accounts to pay by standing order £25? I'd have to open a new, external account, paying poor returns, just to pay by this means.

I can't understand how you could withdraw say £500 from an external account to pay into the Santander account, then withdraw it from the 123 account to pay it back to the external account - if that is what seems to be discussed in this forum! Surely the money has to sit in one account to earn interest?

Or perhaps I'm being dense!

Unfortunately you are being dense.

Money just needs to be transferred into the account and out again, this can be by standing order, faster payments or physically.

If this is too much trouble then don't bother but I'm making an extra grand a year or more, so am happy to play the game.

bigadaj

Consensus is harsh but true.

Eco_Miser

sevenonine wrote: »

Or the alternative is to use one of my other external accounts to pay by standing order £25? I'd have to open a new, external account, paying poor returns, just to pay by this means.

I don't call 5% AER a poor return in the current economic climate. Just keep £2000 in a TSB Classic Plus, and move £500 between the two accounts to meet the deposit requirement of both.

AnotherJoe

Eco_Miser wrote: »

I don't call 5% AER a poor return in the current economic climate. Just keep £2000 in a TSB Classic Plus, and move £500 between the two accounts to meet the deposit requirement of both.

Thats exactly what I do, the TSB is there mainly to take the SO movements (3x S123) out of my main current account (just because its a bit messy looking at statements otherwise) , so might as well get around 5% on that money whilst it bounces back and forth.