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I-LOV-MONEY

Dov, I presume you are paying the fee for each of them, and don't you have to transfer money in / out each month? Presumably you switch between the two accounts?

Steve_xx

I-LOV-MONEY wrote: »

Dov, I presume you are paying the fee for each of them, and don't you have to transfer money in / out each month? Presumably you switch between the two accounts?

You would pay multiple fees, yes. And, you have to fund them with £500 per month and it must come from outside of Santander I believe.

Silky_Racing

What's this tesco direct debt people mention? A way round setting up DD on the 123 account?

My 2nd 123 account has just been confirmed as open

Steve_xx

Silky_Racing wrote: »

What's this tesco direct debt people mention? A way round setting up DD on the 123 account?

My 2nd 123 account has just been confirmed as open

If you open a Tesco saver account you can set up multiple Direct Debits from the Tesco account to pull money from the likes of the Santander account. That then satisfies the requirement to have two DD's on the Santander account. It might even be the case that you could have two DD's set up from the Tesco account to collect two lots of money from the Santander account, thereby satisfying the requirement to have two DD's on the Santander account. However, with HBOS £5 Reward account you have to have two DD's set up on that, but the two DD's have to be to different organisations.

Silky_Racing

Steve_xx wrote: »

If you open a Tesco saver account you can set up multiple Direct Debits from the Tesco account to pull money from the likes of the Santander account. That then satisfies the requirement to have two DD's on the Santander account. It might even be the case that you could have two DD's set up from the Tesco account to collect two lots of money from the Santander account, thereby satisfying the requirement to have two DD's on the Santander account. However, with HBOS £5 Reward account you have to have two DD's set up on that, but the two DD's have to be to different organisations.

Great, thanks for that. Which tesco savings account do I need to do that? Looks like they have a few different accounts.

Steve_xx

Silky_Racing wrote: »

Great, thanks for that. Which tesco savings account do I need to do that? Looks like they have a few different accounts.

The Internet Saver is certainly ok for this purpose.

innovate

dov wrote: »

I have 5 opened and number 6 is on the way.

With over 2 dozen at the last count, I am a current account hoarder myself, but what's the point of more than 4 123s per person? With £20K in each, you are getting perilously close to the £85K limit, anyway.

And you are unlikely to really achieve 3% AER on more than 3 or 4 accounts since you would need to have huge utility/phone etc bills to make a lot more than a tenner a month [across all the accounts] from the DD cashback.

Steve_xx

innovate wrote: »

With over 2 dozen at the last count, I am a current account hoarder myself, but what's the point of more than 4 123s per person? With £20K in each, you are getting perilously close to the £85K limit, anyway.

And you are unlikely to really achieve 3% AER on more than 3 or 4 accounts since you would need to have huge utility/phone etc bills to make a lot more than a tenner a month [across all the accounts] from the DD cashback.

I agree with you. It's more than a tad risky to go above the 85k ceiling.

Silky_Racing

Just opened a tesco savings account. Can anyone confirm if I can set up 2 DD from the one tesco account to one 123 account and still tick all the boxes around DDs?

dov

Steve_xx has answered most of the questions, just adding a few things.

I-LOV-MONEY wrote: »

Dov, I presume you are paying the fee for each of them, and don't you have to transfer money in / out each month? Presumably you switch between the two accounts?

Yes I am paying the fee for each.
As I said, I will be setting up Standing Orders from Lloyds to Santander and then back again from Santander to Lloyds

Silky_Racing wrote: »

What's this tesco direct debt people mention? A way round setting up DD on the 123 account?

My 2nd 123 account has just been confirmed as open

I have 2 Tesco Internet Saver accounts so I can setup 2 direct debits for each Santander 123 account I set up.

innovate wrote: »

With over 2 dozen at the last count, I am a current account hoarder myself, but what's the point of more than 4 123s per person? With £20K in each, you are getting perilously close to the £85K limit, anyway.

And you are unlikely to really achieve 3% AER on more than 3 or 4 accounts since you would need to have huge utility/phone etc bills to make a lot more than a tenner a month [across all the accounts] from the DD cashback.

I am taking the risk of going over the 85K. This is my personal choice.
I will get an effective rate of 2.88% on each account + cashback on DDs + possibly Quidco/TCB. The DDs that generate cashback are all in 1 account, the rest are Tesco DDs. The accounts are worth it without the DD cashback.

20K at 3% = £600
£600-24= £576
576/20000= 2.88%