Santander 123 Interest

mark9660

I recently started a 123 account with Santander, and they offer 1.5% interest on up to £20,000 balances. They calculate interest daily and pay monthly. In my first full month I had more than £20,000 in the account each day of the 30 in June. My calculation of the interest due is 1.5% / 365 * 30 = 0.12329% * £20,000 = £24.66. Santander have actually paid me £24.49 (a small difference I know, but it all adds up, particularly if every account holder is considered). I have queried this with them but they want me to pay £10 to get their calculations - absurd as I think they are wrong. Has anyone else checked this? Does anyone disagree with my calculations?

Thanks

Breadcake

Hi Mark,
It is 1.50% AER and 1.49% gross. (gross being the interest rate paid monthly).
((0.0149/365) * 30) * 20000 = £24.49

r2015

Bit of a con to be honest

Not really,

I get £5.35 cashback, pay £5 and get on average £20 per month interest on my varying balance so £20.33 a month approx. for £16,000 - £17,000 balance.

Chappers27

Yeah OK, not a con. But not a humdinger of an offer either. Lucky you for having a £17,000 balance :-) You could prob make more than £20 with £17,000. Im sure you know that.

r2015

You could prob make more than £20 with £17,000. I'm sure you know that.

When you reach my age and are instructed by your wife to make the banking simple and reduce the amount of bank accounts in case anything happens, you don't bother about a £1 or 2 extra a month.

eskbanker

Chappers27 wrote: »

Website Manager at [xxx].co.uk
Managing household bills and admin in a single secure account

If you weren't already aware of it, forum rules prohibit posters from promoting their businesses on here so you should ditch that signature.

BTW I accessed that site out of curiosity and just get a generic Microsoft Azure landing page rather than anything to do with your company, so I'd humbly suggest that you get on with your day job!

[Deleted User]

mark9660 wrote: »

I recently started a 123 account with Santander, and they offer 1.5% interest on up to £20,000 balances. They calculate interest daily and pay monthly. In my first full month I had more than £20,000 in the account each day of the 30 in June. My calculation of the interest due is 1.5% / 365 * 30 = 0.12329% * £20,000 = £24.66. Santander have actually paid me £24.49 (a small difference I know, but it all adds up, particularly if every account holder is considered). I have queried this with them but they want me to pay £10 to get their calculations - absurd as I think they are wrong. Has anyone else checked this? Does anyone disagree with my calculations?

Thanks

They can't charge you £10 anymore either

eskbanker

!!! wrote: »

They can't charge you £10 anymore either

They can't if it's a valid and straightforward subject access request for personal data under the (post-GDPR) Data Protection Act, but it's not clear to me that an explanation of an interest calculation would necessarily be regarded this way!

mark9660

Thanks. Very helpful. But how are they allowed to advertise 1.5% when it's not really? Very confusing for most I would have thought. And I'm not sure why they weren't able to give me this simple answer themselves without asking me for £10.

Anyway, thanks.

IanManc

mark9660 wrote: »

Thanks. Very helpful. But how are they allowed to advertise 1.5% when it's not really? Very confusing for most I would have thought. And I'm not sure why they weren't able to give me this simple answer themselves without asking me for £10.

Anyway, thanks.

They're not "allowed" to advertise the AER figure, they're obliged to.

ValiantSon

Chappers27 wrote: »

I recently applied for a Santander 123 account. Sounds great, but I asked the customer service guy to calculate what interest I'd get and what discounts I might get on my utilities - and to compare this against the account fee. Turns out I'd be paying them to have my account. So I didnt do it. Bit of a con to be honest.

No, it isn't a con. In your personal circumstances, it may not be a good option, but that doesn't mean it is a con. They set out the terms and conditions a the start and honour those terms and conditions. If it were a con, then they would be involved in some sort of deception. Your allegation is ridiculous (not to mention libellous).

For many of us, it pays to have the account.