Santander 123 current account - minimum payment threshold for interest

hiohaa

ok, so i have said account, with 24k in it.
I left my job recently as i'm going back to uni, so no more salary payments going in there anymore.

It says for me to receive my interest payment each month, i must pay in £500 minimum from outside santander.

What exactly does this mean? Now i have no income anymore - could i just get a family member to pay in £500/month, and then i would transfer it back to them a day or 2 later - would this work?

would santander just see the money being paid in, and not going out back to the same person?

is that a legitimate strategy or is there another way if not?

thanks

eskbanker

What you suggest would work (they're not interested in where the money's coming from or going to, beyond compliance with the Ts & Cs), or alternatively you could just transfer it to and from another account you hold - if you don't already have another account then consider opening one with another bank, both to minimise the risk of 'all eggs in one basket' but also to earn interest on the £4K that's not getting any in the 123.

hiohaa

eskbanker wrote: »

What you suggest would work (they're not interested in where the money's coming from or going to, beyond compliance with the Ts & Cs), or alternatively you could just transfer it to and from another account you hold - if you don't already have another account then consider opening one with another bank, both to minimise the risk of 'all eggs in one basket' but also to earn interest on the £4K that's not getting any in the 123.

good point, ok thank you.
so i just create another account in my name from another bank, and recycle?
set up a standing order that transfers into my santander account £500/month, and set up another standing order that transfers £500 back a day later, into the original rival account.

Correct?

bigadaj

hiohaa wrote: »

good point, ok thank you.
so i just create another account in my name from another bank, and recycle?
set up a standing order that transfers into my santander account £500/month, and set up another standing order that transfers £500 back a day later, into the original rival account.

Correct?

Could even be the same day. Only things to be careful of is that there is sufficient funds in the accounts if one is delayed so you're not overdrawn, and a related one in that different banks have different rules sometimes, for example tesco bank processes over a weekend which is unusual.

Ballard

If it wouldn't be too inconvenient you can withdraw cash and pay it back in.

xylophone

You will still have the necessary two active DDs on the Santander 123?

You could open a TSB plus current account with £2000 (go paperless) and a Tesco current account with £2000.

Set up a SO for £500 from TSB to Santander and one from Santander to TSB for the same day each month.

Move monthly interest from Santander and TSB to Tesco.

hiohaa

xylophone wrote: »

You will still have the necessary two active DDs on the Santander 123?

You could open a TSB plus current account with £2000 (go paperless) and a Tesco current account with £2000.

Set up a SO for £500 from TSB to Santander and one from Santander to TSB for the same day each month.

Move monthly interest from Santander and TSB to Tesco.

yup still got the direct debits going through.
why would i move the interest to a 3rd bank, i'm missing something obviously.
thanks

PeacefulWaters

hiohaa wrote: »

yup still got the direct debits going through.
why would i move the interest to a 3rd bank, i'm missing something obviously.
thanks

If you exceed £20k balance with Santander the bit over £20kmearns no interest. So move it somewhere that does ...

Steve059

I've done this before with Halifax & Co-op, and I'd personally recommend NOT doing both Standing Orders on the same day, just in case something goes wrong. From memory, I spaced them out roughly equally with one on the 7th and the other one on the 21st.

xylophone

I've done this before with Halifax & Co-op, and I'd personally recommend NOT doing both Standing Orders on the same day, just in case something goes wrong. From memory, I spaced them out roughly equally with one on the 7th and the other one on the 21st.

If the OP plans to keep £20000 in Santander and £2000 in TSB, there should be no problem about having the SOs set for the same day.

molerat

hiohaa wrote: »

...................
It says for me to receive my interest payment each month, i must pay in £500 minimum from outside santander. ..............

Not quite true, the money can come from anywhere other than a Santander account in your name. I often fund MrsM's account from mine and vice versa. One of our regular payments is from my daughter's Santander account.