Interest

[jennyjoan]

There is a 1.5% interest rate on the 123 Santander Current Account.

So I invested double what I had already in the account. I have been keeping an eye on the interest and even though I invested about a couple of months ago. The interest at the end of the month is exactly the same as I was getting before I doubled up.

Anybody care to elaborate. Thanks

[New Judge]

There is a limit of £20k on the amount on which interest is payable. Did you perchance double up from £20k to £40k?

[jennyjoan]

No Judge - I doubled up from 10k to over 20k

[New Judge]

Then you need to contact them to find out why your interest has not doubled.

[gingejbee]

^^^I completely agree....the best person to answer your query is someone at Santander who has access to your account details, either on the phone or in branch.

[fiction-factory]

Jenny- please can you tell us how much interest you receive each month. I'd be very suprised if the calculation was wrong - it's all automated and mine is always fine. (You won't get any interest on the excess balance over £20000 but that's not major factor here)

[fiction-factory]

Do you still meet the eligibility criteria for the 1.5%?
i.e.
Eligibility
Pay at least £500 into your account a month
2 active Direct Debits
You are over 18 (pretty sure you meet that one) and live in the UK permanently

[fiction-factory]

And are you comparing your interest with the amounts you got when the rate was 3% (probably not as it changed to 1.5% well over a year ago

[New Judge]

If she didn't meet the eligibility criteria she would get no interest at all, f-f.

[Davemano]

You are obviously checking your interest rate but have you checked that your balance has catered for the additional £10.000. If so the only people who can sort it is Santander. I have been with them since they were Abbey National and have not had any problem.

[Old_Geezer]

I'd consider being offered just 1.5% pa was a problem before one started. No one deserves use of my resources at that return.

[Davemano]

^^^^ So your 'resources' are giving a better return. Be interesting to known how.

[malagabob]

Jenny they do a monthly saver as well. It’s 5% Save the max per month £200 for 12 months. if opened at the beginning of the term get £64 interest. Not a lot but it all counts. You know you can open 2 accounts? As long as you meet the criteria.

[Old_Geezer]

Some are but that was never stated, nor the point. Under the mattress at least ensures others aren't taking advantage and disrepecting.

[jennyjoan]

Magalob - are you saying save max £200 per month for one year ie that would be £2,400 and you get £64 interest at the end of that year. Is that correct. if so not very much.

[Old_Geezer]

I'm probably calculating this incorrectly, and going to get embarrassed, but roughly.
Brand new account starting at zero.
200 a month is 2400 at the end of the year when interest is calculated.
But on average for the year there's only half that; 1200.
1200 x 0.05 = just 60.
Is there some kind of compounding going on over the year ?

[Old_Geezer]

BTW 5% is still more than 1.5%. And no, it's not very much.

[jennyjoan]

thanks OG - do you think Magalob is saying that I can open 2 accounts of the Save the max per month £200 for 12 months.

[Old_Geezer]

They seem to be, but check with Santander, or whoever.

[jennyjoan]

might have a call into Santander today and see what they have to say. Mind you some of these workers are pretty clueless.

[malagabob]

Possibly you can get the 5% per person deal. But I meant each person can open a account to have savings of 20;000. As long as criteria is kept. You could keep transferring the 1000 between accounts to meet that.