- Thread starter Appyasme1
- Start date
good if you have a lot of direct debits going out as they pay you a percentage/incentive for selected ones.
ive got £20k sat in mine to get me the maximum return, although they lowered the amount they pay back a year or two ago I think I still get about £40 out of it a month for basically cycling money through it. you are only allowed 1 per person but can have a joint one, so if you have a MRS then you can have 3, but only really worth it if you have £60k sat around. no point putting more than £20k in as that's the maximum they pay interest on and they charge you £5 per month to have the account.
I basically have a set amount that travels between various bank accounts allowing me to receive the incentive offers of cash back etc..
some banks (NatWest) usually offer an incentive to switch accounts, so set up an account with a different bank (Barclays online is the simplest) stick £1 in it then switch is to NatWest 3 months later to receive the £100 odd they offer for switching. set up the minimum amounts of direct debits/standing order to keep them happy and they will give you £5 per month. do the same with other banks etc..
ive got £20k sat in mine to get me the maximum return, although they lowered the amount they pay back a year or two ago I think I still get about £40 out of it a month for basically cycling money through it. you are only allowed 1 per person but can have a joint one, so if you have a MRS then you can have 3, but only really worth it if you have £60k sat around. no point putting more than £20k in as that's the maximum they pay interest on and they charge you £5 per month to have the account.
I basically have a set amount that travels between various bank accounts allowing me to receive the incentive offers of cash back etc..
some banks (NatWest) usually offer an incentive to switch accounts, so set up an account with a different bank (Barclays online is the simplest) stick £1 in it then switch is to NatWest 3 months later to receive the £100 odd they offer for switching. set up the minimum amounts of direct debits/standing order to keep them happy and they will give you £5 per month. do the same with other banks etc..
depends on how much money you have, it used to be 3% up to £20k, now its 1.5%, a quick google shows that nationwide pay 5% upto £2500.
I changed from LLoyds to Santander about 3 or 4 years ago when they were offering 3% interest. the switching service worked to a point, but some payments ended up being out of sync and took 3 months to sort themselves out again. if its only going to save you a few pounds, I wouldn't bother, as it was more hassle getting everything set up. also you need to thing what cash back is offered from other bills like direct debits etc.
one issue that I had was that I had a direct debit set up before the switch with BOC, but I never used it, so when the switch was done it was never set up with the new bank as no payments had been made to BOC as a direct debit from the previous bank.
I changed from LLoyds to Santander about 3 or 4 years ago when they were offering 3% interest. the switching service worked to a point, but some payments ended up being out of sync and took 3 months to sort themselves out again. if its only going to save you a few pounds, I wouldn't bother, as it was more hassle getting everything set up. also you need to thing what cash back is offered from other bills like direct debits etc.
one issue that I had was that I had a direct debit set up before the switch with BOC, but I never used it, so when the switch was done it was never set up with the new bank as no payments had been made to BOC as a direct debit from the previous bank.
RonA
specialist in repairing sealed for life equipment
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The wife & I have had 123 accounts for some time & even had a joint one for a time. At the time we had them nearly full & cost of the account at only £2/month + 3% interest they were giving a far higher return than many ISA’s on the go at the same time.
Since the interest on the accounts have been reduced to 1.5% & the cost of the account has been upped to £5/month they have become less attractive but still pay more than most ISA’s. They can also be enhanced slightly as with the 123 you can take out a regular savings seaver (5%) which despite being limited to £200/month for a year pays approx 2.6% simple interest.
With rates on the increase a time may be dawning when the 123 rate becomes unattractive but for time being I’m holding on to mine.
RonA
Since the interest on the accounts have been reduced to 1.5% & the cost of the account has been upped to £5/month they have become less attractive but still pay more than most ISA’s. They can also be enhanced slightly as with the 123 you can take out a regular savings seaver (5%) which despite being limited to £200/month for a year pays approx 2.6% simple interest.
With rates on the increase a time may be dawning when the 123 rate becomes unattractive but for time being I’m holding on to mine.
RonA
johnik
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I have one, also a deposit account with them.
when i moved house i came into a nice sum of money
and wanted to put some of that into the deposit account, i was told that the curent account paid more interest than the deposit so thats where it ended up, interest rate is rubbish but better than nothing.
other than that, never had a problem with them.
when i moved house i came into a nice sum of money
and wanted to put some of that into the deposit account, i was told that the curent account paid more interest than the deposit so thats where it ended up, interest rate is rubbish but better than nothing.other than that, never had a problem with them.
