Santander Regular Saver 5% (123 customers)

polymaff

mary wrote: »

I would be interested in any answers as I am in an identical situation. But because my 2 direct debits come from Tesco I don't really have alternatives I can think of to substitute for them, but then I don't really have anywhere else to park my £20K if I withdraw it.

Santander DDs don't have to be monthly payers, and as most people have / can fabricate non-monthly DDs you might fimd it easier than you think.

chockydavid1983

A lite account is part of 123 World:
https://www.santander.co.uk/uk/123-customers

polymaff

AndyPK wrote: »

A lite account does not entitle you to the 5% saver.

"A Santander 1I2I3 World customer is someone who holds one of our 1I2I3 current accounts"

pinklady21

"To be eligible for the higher interest rate you must be a 1|2|3 World or a Santander Select customer at point of opening."

This is not the same as saying that you have to remain a 123 customer. It goes on to say:

"If you don!!!8217;t fund the account from your Santander current account or if you deposit more than £200 in any month, Santander reserve the right to revert your account into an Everyday Saver."

This does not stipulate it has to be a 123 current account either.

Have we found a loophole?

ValiantSon

Nick_C wrote: »

Even if you have to pay £1 a month for the lite account and get no cashback on DDs, surely it is still worth it. Paying £1 a month fees would reduce the interest from about 5% to about 4%.

And I think I read somewhere on here that they don't make the £1 monthly charge if there is no activity on the account.

If you paid the SO out to the regular saver from the 123 Lite account then there would be activity on it.

There is also the potential that they will close inactive accounts.

YorkshireBoy

pinklady21 wrote: »

Have we found a loophole?

The best "loophole" will be found in the 123 Lite T&Cs, section 3, para 3.

Read and digest. No need to have a 3 page discussion about it. Loopholes get closed. Look what happened with Tesco.

polymaff

pinklady21 wrote: »

Have we found a loophole?

I think that you have - and it has the potential to save £1 per month, plus the effort of servicing, a 123 lite account. Just be sure that that £1 per month is more than the extra benefit a serviced 123 lite account can deliver.

YorkshireBoy

mary wrote: »

I would be interested in any answers as I am in an identical situation. But because my 2 direct debits come from Tesco I don't really have alternatives I can think of to substitute for them, but then I don't really have anywhere else to park my £20K if I withdraw it.

If you've £20K and no cashback earning DDs then your interest rate is 1.19%.

There are ordinary savings accounts currently paying more than this.

mary

Thanks. Am in the fortunate position, that I already have 14 RS Lloyds Club, HSBC, Santander, Saffron Walden, Nationwide, TSB, First Direct, Penrith 3 yr, Principality Members, Halifax, Lloyds Monthly, BOS Monthly, Bucks RS, Coventry RS.

In addition, I have higher interest current accounts with Nationwide, 2 x BOS Vantage, Lloyds Club, Santander 123, 2 Tesco,2 TSB - all the high earning accounts

I have 14 Tesco DDs to do somethiing with. I have 3 credit cards I can rearrange who pays them, a sports DD, BR Gas DD and think I will have to open the Post Office account to make up the 6th DD.

I think I will have to sacrifice the 3 Halifax reward accounts and one of the BOS Vantage accounts.

I tend to stick with the big name institutions rather than some of the lesser names Martin also mentions.

It's really a case of a choice between 2 x BOS Vantage with £5k in each @ 2% v Santander 123 £20k (no cashback) @ 1.5% with the RS @ 5%. Which is the best to keep?

polymaff

mary wrote: »

Thanks. Am in the fortunate position, that I already have 14 RS Lloyds Club, HSBC, Santander, Saffron Walden, Nationwide, TSB, First Direct, Penrith 3 yr, Principality Members, Halifax, Lloyds Monthly, BOS Monthly, Bucks RS, Coventry RS.

In addition, I have higher interest current accounts with Nationwide, 2 x BOS Vantage, Lloyds Club, Santander 123, 2 Tesco,2 TSB - all the high earning accounts

I have 14 Tesco DDs to do somethiing with. I have 3 credit cards I can rearrange who pays them, a sports DD, BR Gas DD and think I will have to open the Post Office account to make up the 6th DD.

I think I will have to sacrifice the 3 Halifax reward accounts and one of the BOS Vantage accounts.

I tend to stick with the big name institutions rather than some of the lesser names Martin also mentions.

It's really a case of a choice between 2 x BOS Vantage with £5k in each @ 2% v Santander 123 £20k (no cashback) @ 1.5% with the RS @ 5%. Which is the best to keep?

I think that you might find that the Halifax Rewards are better value-per-mandate than the BoS Classic with Vantage. The M+S switch offering is pretty good, too. Even without a switch, the co-op scores well per mandate.