Moving cash around to get the best deal

markandkate

I have a single and joint 123 Santander accounts. My wages are paid into one and I have a direct debit to pay into the other each month so I get interest and cash back direct debits. I may be about to lose my job and probably won't get another one. I have money is ISA's etc and am trying to work out how I can transfer money into the Santander account to continue to get the interest. If i paid a lump sum into another bank could I then say transfer £2,000 into the first Santander account, £1500 into the second and then £1,000 back into the original account. I am not sure how best to set all this up and would appreciate some advice please. Thank you

polymaff

The minimum pay-in per month is the least of your problems. You can move money into Santander and then out five seconds later and that meets that requirement.

Is it still worthwhile though? With higher monthly charges and lower interest rates we have recently dumped three 123 bank accounts entirely and will demote the other to a 123 lite. We just can't justify five-fold, multiple, monthly account fees against an interest rate which is only 0.05% higher than we can get in a no-strings easy access savings account.

jennifernil

The amount needed per account is £500 per month, but there is no need for it to stay there.

Open an account elsewhere and every month move £500 out of one Santander account to the new account then move it back again. Repeat with the second account.

As said above, only worth keeping if you have a decent amount in it to get interest on and your cashback covers the account fees.

Mine is becoming borderline, only keeping it meantime as I also have the regular saver.

surreysaver

I've downgraded my 123 to a 123 Lite, as the £5 per month fee is not worth it for 1.5% interest on £20k.
But if you want to keep it, its £500 per month pay in - pay in £500 to one of your Santander accounts from a non-Santander account, move the money back out then into another Santander account and so on.

polymaff

jennifernil wrote: »

Mine is becoming borderline, only keeping it meantime as I also have the regular saver.

I checked with Santander that you could keep the reg savers if you downgraded from 123 to 123 lite. That settled it.