Interest Rates

The days of being loyal to one bank have gone.

Move money around to where you get the best interest it's your money make it work for you.

Liz46 I agree with you. I have been with RBS since 1962 and I do not intend to abandon them but I cannot look a gift horse in the mouth.

I think it is very easy to switch if you close your old account and just transfer everything to Santander as they will then do it for you.

I chose to keep my old account open (being a cynical person) and just transferred to Santander the direct debits that would give me cashback. This meant that I had to change the direct debits and pensions myself but that was not too difficult.

AmI right in thinking that DD's are automaticaly switced over now if you change to a new current account? The S.O. has used Santander for ages, ever since interest rates on Isa's plummeted. I just need to make the effort to switch. I've been with HSB forever and feel very badly treated by them these days but also feel that the minute I switch they'll come up with a decent scheme of their own.

I still have the Santander booklet.

1% balances from £1,000
2% balance from£2,000
3% balance from £3,000 - £20,000( max)

Cashback on household billsbills

1% on water bills, council tax, and Santander mortgage repayments
(up to a max monthly payment of £1,000)
2% on gas and electricity bills.
3% on mobile phone, broadband and paid for ty packages

123 Credit Card (cash back on spending)
1% major supermarkets
2% major department stores
3% on travel (applies to spend up to £300 a month on petrol or National Rail and Transport for London)

The 1% cash back on water and council tax applies to rates in Northern Ireland, household bills do not include TV licence, maintenance/insurance contracts, commercial mortgagesmortgages.

£2 monthly fee
Pay at least £500 a month into your accountaccount
Have 2 direct debits set up in your account. Cash back household bills must be paid by direct debit.

First Years Annual Fee refunded.

Not in the book I have but there is something I remember , if I am correct. Example, M&S is classed as a supermarket not a major store so if you purchased £100 worth of clothing you would only get 1% cash back. I think I have that right, so there may be some points that need affirming.

Ana yes, you do get interest on what you spend. Waitrose gives 1% as does Morrisons. Waitrose petrol 3%, Sainsburys petrol 1% but I donot think that Sainsbury give anything for groceries. I googled this lot today.

(Sorry, that was to Charleygirl)

I'm not sure why you think you have to spend a lot using the Santander 123 account - you don't get interest on what you spend, surely? I thought it was the balance in the account that gained the interest...

I see lots of people are using the Santander 123 Acc with great success , we have been very happy with the amount of interest we've been getting for the last year or so. The £2 fee is very easily covered and the DD don't even have to be active you just have to set it up they don't seem bothered if its actually being used..

Also feel like taking money out of UK accounts, stick some under the mattress and spend the rest on a holiday and house improvements. Honestly, why lend them my money for free! Account with First Direct used to pay good interest, than less and less and less and now current account is o% and savings account about 0.2%. Can't get Isa's as we live abroad. Building Societies give much better return btw- but we can't get an account with them either, as we live abroad.

My mathematical (lack of) brain will need to get into gear. 3% is given at Waitrose petrol pumps but they usually charge the most for petrol, is it a win win?

Not every supermarket accepts the 123 so interest cannot be gained each time. As far as I can work it out, one's direct debits have to be the most amount of dosh if one wants to earn a lot of interest eg council tax and possibly fuel.

I have an appointment on Friday so I will understand more then.

Interesting.

I have just (mid December) taken out a Santander 123 account.

As said it is 3 % to a maximum £20.000 in your account.

You have to have 2 direct debits and I made one out for £25 to my chosen charity and the other was a direct debit for having a Santander Credit Card which is £2 a month/£24 a year. The Santander Credit Card was being promoted as 'free' for one year so £24 was taken out of my account which set up the credit card account but then £24 was immediately credited back to my account.

This sounds confusing but I have the credit card facility for one year, free, if I choose not to continue with my credit card and the annual fee of £24 I can cancel at anytime but I must replace the direct debit with another to comply with the initial account set up.

What I like about this account was the fact the 2 direct debits could have been for as little as £5 per annum. The member of staff dealing with my account was excellent and guided me through what proved to be a very simple transaction.

I am waiting for my first statement to arrive showing any interests gained on the sum in my account and any money gained by purchasing goods but as my first direct debit is not taken out, by my choice of date, until January 15 I will have to wait as I. presume my account will become activated at that time for interest.

To receive the 3% interest one has to have a minimum of £3000 up to a max of £20,000 in the account. It is 1% from £1000 I believe.

Liz46 that was an excellent return.

I've opened a Santander 123 and received £48 interest last month plus cashback on bills I had paid. This more than covers the monthly fee. I kept my old current account open just in case but am satisfied with the Santander one.

jeanie99 I was at Santander yesterday and it is 3% being paid to a max of £20,000 and one only needs 2 direct debits. I believe that the cost is £2 a month.

Isn't there a monthly fee with Santander? A good site to check out bank accounts and interest rates etc, is the MartinLewis one, Moneysupermarket.com It gives excellent unbiased advice and you can sign up for a weekly email showing all the latest offers.

Take out a current account with Santander, you need to pay in £500 a month and you will receive 4% on balances up to £20,000 less tax.
I personally move the same money around different current accounts to get the better rates, just set up standing orders online, it's your money make the most of the amount you have.
You will need 3 direct debits but you will receive money back on these, e.g. gas, electric, phone, general rates, water rates, tv license. 1% or 2% dependent on which.
Read the application details.
Current accounts are easy access so the money is not tied up.
As someone said previously Lloyds have a good interest rate TSB do also at 5% up to £2000 and TSB don't need direct debits which is a plus just the £500 a month.

It is Lloyds I am with Stansgran and on their new Club account they pay 4% up to £5000 and it is they who are paying the miserly rate on the instant access acount.

Lloyd's have a similar one to Santander. Might be worth investigating it. Pensioner bonds should be around in Jan.

Yes its the Santander one that we have in fact we have a Current Acc each and also a joint one so we gain interest on all of them.. (don't have 20K either ) I do understand your reticence if you don't transport or a branch near you but we do all banking online with Santander and it really the simplest thing , you can also do all your business on a mobile phone too if you download their app.. its a shame to miss out though.

The account I have only pays interest to £5000. I am looking into the Santander account which I think pays interest up to £20,000 although I don't have that much!! The problem there, is we don't have a Santander bank near and I am not into internet banking.It has taken me years even to get round to using a computer and that is a fact Since DH's diagnosis of Alzheimers we do not have transport.

annsixty if you already have an interest paying current account why don't you just put the money in there? you'll have ease of access whenever you want and no tying up money.

Thank you for the replies. I already do have an interest paying current account and have looked into the new NS accounts as I am 77,but my age is what stops me tying money up.Also I did want easy access for emergencies and to help DC with short term help if and when they need it.

Just hang on for the forthcoming Tax Year and put it in an ISA.

I am in the middle of transfering bank accounts because of that very problem ann I am opening an interest bearing current account, which my bank of the moment does not offer.