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Santander and 2% cashback on DD
r2015
Posts: 1,136 Forumite
I have a Santander account and currently get £1.54 from my £77 gas and electricity DD.
Of course due to me using more gas in the winter my supplier wants to increase my DD to £120 per month, which I disagree with but I can pay, which will give me cashback of £2.40 a month, a gain of £0.86.
So for an increase of £43 to my DD I gain £10.32 a year and over the year I calculate my DD should have only increased by £3 a month and I will probably be switching so most likely get a lump sum of £480 back in a year.
Where else could I get £10.32 on £480? :j
Of course due to me using more gas in the winter my supplier wants to increase my DD to £120 per month, which I disagree with but I can pay, which will give me cashback of £2.40 a month, a gain of £0.86.
So for an increase of £43 to my DD I gain £10.32 a year and over the year I calculate my DD should have only increased by £3 a month and I will probably be switching so most likely get a lump sum of £480 back in a year.
Where else could I get £10.32 on £480? :j
over 73 but not over the hill.
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Comments
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£480 FSCS protected ?0
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Even better with the likes of Ovo/Iresa that pay you 3% interest on credit balances. Although that being said, I'd still rather have the money in my bank, a few utilities providers have ceased trading recently and I wouldn't fancy your chances getting your money back in that scenario...0
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YorkshireBoy wrote: »Don't think it's as high as that is it?
£480 x 0.05 / 12 x 6.5 = £13.00 (gross)
The OP's question was "Where else could I get £10.32 on £480?". If it was me, I would get 12 months worth of 5% for £480, i.e. £24, which is over twice the £10.32. I assumed he doesn't earn more than £1,000 a year in interest as if he did, he wouldn't have asked the question. Therefore the £24 would be tax free.
But I take your point, if it's not a £480 lump sum but actually 12 x £43, it's more like £13.87 interest in a Regular Saver. [STRIKE]Which is, indeed, over twice as much as the £5.57 cashback the OP would make from increasing his DD by £43 a month. So please pick your bone with the OP's numbers, not mine
[/STRIKE]
Actually, I was talking utter nonsense there. The cashback is indeed 2% a month, not 2% AER. The OP's £10.32 cashback is therefore correct. Still less than you can make from a 5% Regular Saver, where your money is also 100% FSCS protected.0 -
Not picking any bones at all. I wondered if I was missing something.But I take your point, if it's not a £480 lump sum but actually 12 x £43, it's more like £13.87 interest in a Regular Saver.
Which is, indeed, over twice as much as the £5.57 cashback the OP would make from increasing his DD by £43 a month. So please pick your bone with the OP's numbers, not mine
But it is £13 exactly, since the overpayment amount is £40 a month (£43 less the £3 the OP says it should be).
Don't be so touchy. Happy New Year.
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I have a Santander account and currently get £1.54 from my £77 gas and electricity DD.
Of course due to me using more gas in the winter my supplier wants to increase my DD to £120 per month, which I disagree with but I can pay, which will give me cashback of £2.40 a month, a gain of £0.86.
So for an increase of £43 to my DD I gain £10.32 a year and over the year I calculate my DD should have only increased by £3 a month and I will probably be switching so most likely get a lump sum of £480 back in a year.
Where else could I get £10.32 on £480? :j
What you are describing is pretty close to a 3.7% regular saver. There are still regular savers that beat this - but your idea is a sound one - and definitely attractive if you would have to pay tax on the regular saver interest..0 -
Natwest gives you 3%0
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My word, you lot are dedicated.....or something. I'm afraid, personally, I see £12 a year as £1 a month, and I just can't get excited about half a cup of coffee a month.
I came into this world with nothing and I've got most of it left.0 -
Shakin_Steve wrote: »My word, you lot are dedicated.....or something. I'm afraid, personally, I see £12 a year as £1 a month, and I just can't get excited about half a cup of coffee a month.
You lack imagination. A year ago Scottish Power put my (also Santander 123-paid) monthly DD up to £4,386. If I'd been as imaginative as the OP, then instead of protesting, I might have let it run
- and made a good deal more than £12 p.a. 0
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