YBS accounts

Icesaver

I've recently opened a Yorkshire Building Society Internet Saver at 5.5% varaiable, in the info sent with the account details I read that YBS claim to have the policy of not launching new products, then reducing the rate on older products. Just wondered if any peeps have experience with YBS and is this as good a place as any to put money in a variable rate account, so one doesn't have to keep rate chasing because of lowering of rates on 'old' products?

Thanks in advance

Mr_K

I've got most of my cash ISA money with then in an 'E_ISA'. Rates are never top of the table but consistently good, so yes they don't tend to do short term 'rate grabbers'.
They haven't yet moved rates as a result of the 1.5% rate cut so I'd expect their accounts to lower by 1.5% soon.

apt

Although Nationwide has indicated that it will cut by 1.5%, I expect many building societies will cut saving rates by less and mortgage rates by even less than the base-rate fall. At present they need savers more than borrowers. The YBS internet saver has been a good account over the last couple of years for those who want consistent interest and the Link card is a useful feature.

scottons

Icesaver wrote: »

I read that YBS claim to have the policy of not launching new products, then reducing the rate on older products. Just wondered if any peeps have experience with YBS and is this as good a place as any to put money in a variable rate account, so one doesn't have to keep rate chasing because of lowering of rates on 'old' products?

Well they did exactly that when they brought out the Internet Saver account, it replaced the "e-saver" account which had virtually identical T&Cs except that eSaver is guaranteed not to go below the BOE base rate (hurrah!) whereas Internet Saver isn't. But Internet Saver has consistently paid higher interest than eSaver ever since.

I'm sure this may still be a good a place as any to put your cash, but the usual advice applies to keep an eye on the rates and compare them with other accounts on a regular basis.

apt

What you say is true Scottons, but the difference in interest between the two accounts has never been that large. Currently it's 5.3% rather than 5.5%. That's not like outfits such as Newcastle and the soon to be merged Scarborough building societies which are notorious for bringing out new accounts and slashing interest on old ones. The Newcastle Netsaver 6 only pays 4.35% compared to 5.5% for the Netsaver 7. The older Netsavers probably pay even less.

Icesaver

Thanks for your responses so far. I agree it's wise to keep an eye on interest rates, but it's really annoying to have to keep moving money about. That's one of the things that attracted me to Icesave, their promise of consistently good rates, though the promise ain't much good if the provider goes under! Hopefully this YBS account will stay reasonably competitive. I do have some fixed rate accounts, notably Halifax Guaranteed Saver reward which allows further deposits , but don't want too much in one place when I eventually get my Icesave money back.

savetilibleed

Icesaver wrote: »

Thanks for your responses so far. I agree it's wise to keep an eye on interest rates, but it's really annoying to have to keep moving money about. That's one of the things that attracted me to Icesave, their promise of consistently good rates, though the promise ain't much good if the provider goes under! Hopefully this YBS account will stay reasonably competitive. I do have some fixed rate accounts, notably Halifax Guaranteed Saver reward which allows further deposits , but don't want too much in one place when I eventually get my Icesave money back.

YBS have changed the Internet Saver rate 6 times since I opened mine in June 2007. It is easy to check by searching all transactions as it gives the interest rate at each transaction which is at least mnthly for me as I take interest paid out monthly. The only online account I've had longer is with Abbey and the statements don't list the interest rate.

Certainly, YBS have not been as hasty to drop their rates as many times as others in recent turbulent times. But then their rates were not unsustainably high. I however moved money out from YBS to NRock and to B&B while their rates were good. Trouble is you lose out if done too many times to not much gain.

You can set up a number of transfer accounts so if what you are paying into will accept payments direct, you dont have to go via your own bank account, ie a 2 step movement. I was able to pay directly from YBS to NRock.

They are a steady organisation on the whole.

Icesaver

savetilibleed wrote: »

They are a steady organisation on the whole.

Lets hope it doesn't change when they merge with the Barnsley