A question about the £500 p/m Deposit for Santander 123 Account

9
Found 28th Apr 2015
I am interested in the Santander 123 account, using is kind of like a savings account due to the 3% interest but have a question about the monthly deposit which I hope someone can answer for me.

With the £500 p/m deposit each month, can I pay in £500 (from an external account, or have it come from an employer) but then take out say £200, leaving £300 as paid in and kept in the account each month?

Basically I want to save around £300 a month, but want to make sure this is possible before going ahead.

Thanks!
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AskSantander
9 Comments
Yes, that's possible.

Although with your method, you will earn approx. £50 in interest. Also factor in the £2 monthly fee - however, household bills can often negate this.

A First Direct 6% Regular Saver would earn you more interest - £300/month for a year would earn you approx. £100 in interest.
Yep, as long as you are paying in at least £500 per month, regardless if you spend it all, the 123 benefits still stand.
Not sure, but remember it costs £2/month & you need at least 2 direct debits every month as well as the min £500,

Also, interest only paid on balances of over £1000

santander123.co.uk/?ci…wcB
Thank you all for the quick responses, most appreciated

Karlie88 - Thank you for bringing up the First Direct Saver, I was not aware of that! I can see you can only save £300 max a month so I may open one of those too and maybe split my savings on months when I can put away a bit more.
Edited by: "NightVision23" 28th Apr 2015
NightVision23

Thank you all for the quick responses, most appreciatedKarlie88 - Thank … Thank you all for the quick responses, most appreciatedKarlie88 - Thank you for bringing up the First Direct Saver, I was not aware of that! I can see you can only save £300 max a month so I may open one of those too and maybe split my savings on months when I can put away a bit more.

you will need to hold a 1st account to qualify for the 6% regular saver and the 1st account requires a £1000 a month funding.
cliosport65

you will need to hold a 1st account to qualify for the 6% regular saver … you will need to hold a 1st account to qualify for the 6% regular saver and the 1st account requires a £1000 a month funding.



The 1st account only requires 1 x £1000 deposit for a £100/£125 switch incentive - even that can be split into 2 x £500, 4 x £250 payments etc.

To bypass the £10 monthly fee (which is not charged for the first 6 months from account opening), open an Everyday E-Saver and put £1 in it.

karlie88

The 1st account only requires 1 x £1000 deposit for a £100/£125 switch in … The 1st account only requires 1 x £1000 deposit for a £100/£125 switch incentive - even that can be split into 2 x £500, 4 x £250 payments etc.To bypass the £10 monthly fee (which is not charged for the first 6 months from account opening), open an Everyday E-Saver and put £1 in it.:)

Fair point that will work . :-)
Thanks for the replies everyone I do have a first direct current account (just switched a couple of weeks ago) but didn't really consider the regular saver until karlie88 mentioned it again. Again, thanks for all the help
don't you need to switch your regular bank account over to them, thereby closing your main account? or can you just open a new one?
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