Santander 123 Interest

eschaton

If your only concern in life is missing out on 17p or so per month then you are in a good place.

enthusiasticsaver

Dragonfly1 wrote: »

If this money is going to be sitting in Santander for the next couple of years with a high certainty, best go and get some financial advice with your wife about investing it. It'd be irresponsible to name products/stocks here but you can be aiming for at least 5% return annually through investing. There's always going to be some risk though, but it's incredibly small if you seek sound financial advice and willing to keep with the investment for a few years if there's a downturn. Just food for thought as £240/annually is a drop in the ocean for what £17,000 can pay out on a yearly basis.

I've got TSB as at least it's 3% interest but Santander interest is pathetic these days.

It's a shame personally that I missed out on great returns 3 years to 1 year ago as, to be frank, I followed this sub-forum and didn't really ever see ISA Stocks & Shares mentioned as a (better) alternative.

ISA stocks and shares are a totally different type of investment vehicle to Santander 123 which is essentially a current account which pays interest on a relatively high cash balance. I have saved in many high interest current accounts but on retiring early we wanted to simplify so we keep our emergency fund and backup cash to our pensions in the account. We get roughly £25 interest per month plus around £8per month cashback on bills less the £5 account fee.

ISA stocks and shares are not bank accounts. You would need to look at savings and investments to see them discussed. It would be highly
irresponsible to invest everything in stocks and shares. 5% is by no means guaranteed at the moment.