Which rate is best? Yorkshire Bank or Halifax?

Suzkin

Hi,

I've started saving about £300 into my Halifax Regular Saver, at 5% fixed for 12 months. (It's a big deal, as I haven't much money).

I also have been putting aside £10 a month into the Yorkshire Building Society's Regular Saver - variable rate - currently 3.75%

Question: should I continue this arrangement or cancel the YBS account?

The reason for keeping both open is that the interest rate in the Halifax account is relatively high, but the funds are automatically swept out of the account every year; whereas the interest rate may be fairly low at the YBS, but this account allows a total of £20k before needing to be withdrawn, as part of the terms and conditions.

I'm not sure how to calculate the better deal - any suggestions?:o

BTW: It's the Yorkshire Buyilding Society, and not 'Bank' as stated in the title..

Thanks in advance.

flyingscotno1

Suzkin wrote: »

Hi,

I've started saving about £300 into my Halifax Regular Saver, at 5% fixed for 12 months. (It's a big deal, as I haven't much money).

I also have been putting aside £10 a month into the Yorkshire Building Society's Regular Saver - variable rate - currently 3.75%

Question: should I continue this arrangement or cancel the YBS account?

The reason for keeping both open is that the interest rate in the Halifax account is relatively high, but the funds are automatically swept out of the account every year; whereas the interest rate may be fairly low at the YBS, but this account allows a total of £20k before needing to be withdrawn, as part of the terms and conditions.

I'm not sure how to calculate the better deal - any suggestions?:o

BTW: It's the Yorkshire Buyilding Society, and not 'Bank' as stated in the title..

Thanks in advance.

Is the YBS account one of the roll-over ones that if you put £250 in for a year youstart the next year with £3000 getting the rate plus your next £250?

malik999

flyingscotno1 wrote: »

Is the YBS account one of the roll-over ones that if you put £250 in for a year youstart the next year with £3000 getting the rate plus your next £250?

That's one hell of a deal.

apt

I would keep both. It's not a good idea to use the Halifax Regular Saver for all of your savings because if you need the money for unforseen reasons before the year is up you lose almost all your interest. The YBS account does allow one withdrawal a year.

Suzkin

Hi All,

Yes - the YBS is the roll-over account. I shall keep both, although I can't figure out which is the better deal for my money: I do not earn much, and the Halifax is quite good for saving up for an ISA (£300 x 12 months = 3,600). However, my anniversary month is July...

Any suggestions on where to put my (limited) funds for the highest return?

malid

Suzkin wrote: »

Hi All,

Yes - the YBS is the roll-over account. I shall keep both, although I can't figure out which is the better deal for my money: I do not earn much, and the Halifax is quite good for saving up for an ISA (£300 x 12 months = 3,600). However, my anniversary month is July...

Any suggestions on where to put my (limited) funds for the highest return?

Have you paid into an ISA yet this year? If not, then I suggest you put the £3600 from Halifax into one. Halifax fave a 2 yr fixed rate ISA at 3.50%. By the way, if you opened this regular saver last July, you may be on the 10% interest which would give you a return of something like £4058. I was and the aniversary date was 23rd July. I immediately withdrew it from the rubbish account it was transferred into. I have an ISA so looking at my options for this money.

If you have an ISA, you could put this amount into the Alliance and Leicester Online Saver Issue 5 with 3.15% interest to 2nd August 2010. This will give you easy access to the money. Birmingham Midshires have something similar for 12 months

zzzLazyDaisy

Also, remember with the YBS it is a variable rate account with a generous annual bonus over the base rate. So when interest rates do start to rise, the lump sum from previous years will immediately get the benefit. So it is worth keeping it going even if you just put the minimum £25 a month in, and then top it up manually when you can.

Keep an eye on your anniversary date, as you can make one withdrawal each savings year, so if you need to get money out and your anniversary is coming up, it may be better to do it within the current year, to keep your options open for the following year.

This account is closed to new savers, so it is worth hanging onto, in my view.

ctdctd

zzzLazyDaisy wrote: »

Also, remember with the Halifax it is a variable rate account with a generous annual bonus over the base rate.

I think you mean the YBS.;)

Suzkin

Yes - I think Lazy Daisy does mean YBS!! (lol)

zzzLazyDaisy

Doh, thanks, have corrected my post :rolleyes:

[note to self: stay off the gin at breakfast]

flyingscotno1

zzzLazyDaisy wrote: »

Also, remember with the YBS it is a variable rate account with a generous annual bonus over the base rate. So when interest rates do start to rise, the lump sum from previous years will immediately get the benefit. So it is worth keeping it going even if you just put the minimum £25 a month in, and then top it up manually when you can.

Keep an eye on your anniversary date, as you can make one withdrawal each savings year, so if you need to get money out and your anniversary is coming up, it may be better to do it within the current year, to keep your options open for the following year.

This account is closed to new savers, so it is worth hanging onto, in my view.

I thought it was still listed on their website- is that a different one?