Putting money aside

Northern_Wanderer

MattMattMattUK said:

We do all pay as part of the SoLR process, but there is also no risk/cost directly with having a credit balance with your energy provider. 

It's the costs that we will have to pay in our future bills to pay for the failures that I'm meaning. Some of that can be avoided if people stop giving credit to the suppliers.

Ultrasonic

Sea_Shell said:

What if you ask your supplier to refund some of your credit mid-year though?

How would your supplier process that?    As a faster payment or as a credit DD?

If a credit DD then you may not then get the cashback for that month on your "debit" DD as the net result would be a credit, but Santander wouldn't also claw back the cash back on the total DD...or would they?

eg. usual DD £200, so monthly cashback of £4.
Credit with supplier builds up to, say, £300, which they agree to refund.
Next month you've only paid total DD, in that month, of minus £100, so no cashback earned.
However, do they claw-back 2% of the £100 - and actually deduct £2 from your account?

Hmmm

I'm certain that the worst that would happen is that you'd get no cashback in a month, not have to pay anything.

EssexHebridean

Sea_Shell said:

I get Santander cashback.

So whilst that's available at 2% I may increase my DD by even more.

It's capped at £5 per month*, but I won't be going that high (£250)

I won't be surprised if their cashback gets pulled or scaled back soon!!



* That's the total cap for the 2% category, including other DD's you may earn 2% on (Santander Insurance)

This is interesting - my plan had been to continue to put aside a little extra each month as we have been doing, and to not increase the DD for the time being. I wasn't factoring in the small amount of "earnings" on the bank account though I have to admit. 

If they scrap the cashback, they'll need to scrap the account charge as well - I'm not paying £2 a month for an account that doesn't give me anything in return! 

Ultrasonic

wild666 said:

Sea_Shell said:

I get Santander cashback.

So whilst that's available at 2% I may increase my DD by even more.

It's capped at £5 per month*, but I won't be going that high (£250)

I won't be surprised if their cashback gets pulled or scaled back soon!!



* That's the total cap for the 2% category, including other DD's you may earn 2% on (Santander Insurance)

I had a 123 account paying them £5 but receiving over £10 per month in cashback. Then they dropped the interest to 1.5% so I dropped to a lite account then it went to 0.6% so I changed to another account. As the monthly interest got lower I was getting less money than the monthly fee, I was paying them to have an account. Santander are shooting themselves in the foot by lowering rates and I suspect some are still losing money by having a 123 account but just cannot be bothered to change accounts or change banks.

I was a bit lazy with terminology above as it's actually a 123 Lite account that I have, which is £2 per month and gives the same cashback but no credit interest. My mortgage is with Santander so I get £5 cashback each month just from that plus more from the likes of energy bills.

Sea_Shell

Ultrasonic said:

Sea_Shell said:

What if you ask your supplier to refund some of your credit mid-year though?

How would your supplier process that?    As a faster payment or as a credit DD?

If a credit DD then you may not then get the cashback for that month on your "debit" DD as the net result would be a credit, but Santander wouldn't also claw back the cash back on the total DD...or would they?

eg. usual DD £200, so monthly cashback of £4.
Credit with supplier builds up to, say, £300, which they agree to refund.
Next month you've only paid total DD, in that month, of minus £100, so no cashback earned.
However, do they claw-back 2% of the £100 - and actually deduct £2 from your account?

Hmmm

I'm certain that the worst that would happen is that you'd get no cashback in a month, not have to pay anything.

 That's what I thought.

The same principle may apply for those getting the £150 council tax rebate, especially if their CT DD is less than that.

I don't think Santander can "reclaim" cashback on net credits, but just may not pay any cashback that month.

It'll all depend on the method of payment used for the rebates.

Ultrasonic

Sea_Shell said:

Ultrasonic said:

Sea_Shell said:

What if you ask your supplier to refund some of your credit mid-year though?

How would your supplier process that?    As a faster payment or as a credit DD?

If a credit DD then you may not then get the cashback for that month on your "debit" DD as the net result would be a credit, but Santander wouldn't also claw back the cash back on the total DD...or would they?

eg. usual DD £200, so monthly cashback of £4.
Credit with supplier builds up to, say, £300, which they agree to refund.
Next month you've only paid total DD, in that month, of minus £100, so no cashback earned.
However, do they claw-back 2% of the £100 - and actually deduct £2 from your account?

Hmmm

I'm certain that the worst that would happen is that you'd get no cashback in a month, not have to pay anything.

 That's what I thought.

The same principle may apply for those getting the £150 council tax rebate, especially if their CT DD is less than that.

I don't think Santander can "reclaim" cashback on net credits, but just may not pay any cashback that month.

It'll all depend on the method of payment used for the rebates.

For getting a single £150 credit I suspect it will make no difference at all to cashback payments.

Sea_Shell

Ultrasonic said:

Sea_Shell said:

Ultrasonic said:

Sea_Shell said:

What if you ask your supplier to refund some of your credit mid-year though?

How would your supplier process that?    As a faster payment or as a credit DD?

If a credit DD then you may not then get the cashback for that month on your "debit" DD as the net result would be a credit, but Santander wouldn't also claw back the cash back on the total DD...or would they?

eg. usual DD £200, so monthly cashback of £4.
Credit with supplier builds up to, say, £300, which they agree to refund.
Next month you've only paid total DD, in that month, of minus £100, so no cashback earned.
However, do they claw-back 2% of the £100 - and actually deduct £2 from your account?

Hmmm

I'm certain that the worst that would happen is that you'd get no cashback in a month, not have to pay anything.

 That's what I thought.

The same principle may apply for those getting the £150 council tax rebate, especially if their CT DD is less than that.

I don't think Santander can "reclaim" cashback on net credits, but just may not pay any cashback that month.

It'll all depend on the method of payment used for the rebates.

For getting a single £150 credit I suspect it will make no difference at all to cashback payments.

We'll find out soon enough!?!

If I remember, I'll report back.


Our net CT would be £50 in the month the credit is received...so we'll see what cashback we then get.