Those with more than one sole Santander 123 account

mt99

"For me the DD's on the second account earn no cashback so in effect the annual fee lowers the interest to 1.2%."


If you already have exceeded the £1000 yearly tax-free interest then the effective interest on the second 123 account is lower than 1.2% as the interest is taxed but you can't claim tax relief on the £5/month

badger09

dave_dph wrote: »

For me the DD's on the second account earn no cashback so in effect the annual fee lowers the interest to 1.2%.

I've opened two more Vantage accounts with Bank of Scotland which takes £10,000. I will move £3000 to Clydesdale at 2% and the rest will go into my loyalty saver with Nationwide currently paying 0.95%; this I'll use to drip feed regular savers with M&S and First Direct. Overall this is better that 1.2% from Santander. This second 123 account will switch to an existing account with Tesco in order to gain the 2500 Clubcard points.

My regular saver with Nationwide matures @ £6000 early December; again I guess the best option open to me by then will be the loyalty saver.

I've just spent most of this morning re-organising accounts and monthly money movements; need a break now before my head explodes!!! :rotfl::rotfl:

Is Clydesdale not dropping to 1.5%?

My Yorkshire Bank Direct (no longer on sale) drops from 2% to 1.5% on 1 December and IIRC, their T&C were the same as Clydesdale's.

darkidoe

YorkshireBoy wrote: »

That's a £5 monthly bet that things will get better next year (assuming no Santander mortgage). You'd get better odds with a lottery ticket!

You must have all the other high interest current accounts, so maybe time for something else other than cash?

I like the Santander for the fact that it pay interest up to 20,000 though. It is also a good account with decent reserves to set standing orders to feed the other accounts. The alternative is abit more hassle with 4-5 more accounts, with propagating a headache.

YorkshireBoy

mt99 wrote: »

If you already have exceeded the £1000 yearly tax-free interest

Or the £500 one, whichever is applicable.

YorkshireBoy

darkidoe wrote: »

I like the Santander for the fact that it pay interest up to 20,000 though. It is also a good account with decent reserves to set standing orders to feed the other accounts. The alternative is abit more hassle with 4-5 more accounts, with propagating a headache.

But at the moment/come November 1st, it's twice the interest of Santander, giving another £300 per annum. Worth the "hassle" of opening 4-5 accounts maybe? As for reserves, well you'd have £5K in BoS, and another £5K in BoS, and another £5K in Bos, and another £3K in Tesco, and another £2K in Tesco. How much "reserve" do you want?

darkidoe

YorkshireBoy wrote: »

But at the moment/come November 1st, it's twice the interest of Santander, giving another £300 per annum. Worth the "hassle" of opening 4-5 accounts maybe? As for reserves, well you'd have £5K in BoS, and another £5K in BoS, and another £5K in Bos, and another £3K in Tesco, and another £2K in Tesco. How much "reserve" do you want?

Hmm problem is I might have to empty those accounts once a year to fill up my ISA allowance, making them empty all at one go. Becomes a bit fiddly when that happens. But yea. extra £300 per year. I am sold!

dave_dph

badger09 wrote: »

Is Clydesdale not dropping to 1.5%?

My Yorkshire Bank Direct (no longer on sale) drops from 2% to 1.5% on 1 December and IIRC, their T&C were the same as Clydesdale's.

I don't recall receiving notification of a change but I guess it stands to reason that it will drop. Sadly it will still be one of the best rates available to me.

ceredigion

I've been toying with this for the last week or so and today sat down and did it.
The two chooses were, open the last two BOS account's available to us max them out and pay off the stoozed money then close the account. Or as above but increase the stoozed pot to max out the account.
In the end went for the latter. Not a lot of money in stoozing at 1.5% but it is enough to cover the Santander account fees. For no other reason that it gave me a warm satisfying glow Santander gave me the money so now they are paying there own fees for the next 15 months at least.
In reality I have just kicked the issue into the long grass until we find out what TSB do in regard to (may) multiple accounts.

Kernel_Sanders

mt99 wrote: »

"For me the DD's on the second account earn no cashback so in effect the annual fee lowers the interest to 1.2%."
If you already have exceeded the £1000 yearly tax-free interest then the effective interest on the second 123 account is lower than 1.2% as the interest is taxed but you can't claim tax relief on the £5/month

If anyone doesn't get this, think of it this way; assuming you have £20K and are investing the monthly interest elsewhere at 1.5%, the net interest would be £240, less £60 fees = £180 therefore 0.9% net, which grosses up to 1.125%.

ceredigion wrote: »

In reality I have just kicked the issue into the long grass until we find out what TSB do in regard to (may) multiple accounts.

My? Many? Accounts you opened in May?

OK so how many TSB a/cs are you getting 5% on?

No_6

What about the money for using DD's to pay bills, this covers more than
the account fee, so 1.5% is still good for my fully loaded accounts.