Skipton's 3.15% to be withdrawn (Friday 19 November)

Ifts

According to an article in thisismoney.co.uk, Skipton BS 3.15% one year bond will be withdrawn tomorrow:

Skipton Building Society's 3.15% one-year bond – a clear best buy – is set to be withdrawn tomorrow (Friday 19 November).

It will be pulled first thing tomorrow morning and replaced with a 3.05% (2.44% after basic rate tax) bond fixed for a year.

Maybe worth opening now before it gets withdrawn as they give you x amount of days to fund it after opening it.

Ifts

Skipton BS have reduced the rates on their fixed rate savings bonds this morning.
New rates: http://www.skipton.co.uk/savings_and_investments/e-savings/E-Bonds/

meunier

Have called Skipton today ... For those who opened accounts before today's closure ... you have until end of business on 26.11.2010 to put monies in your accounts at the registered 3.15% interest rate for the one year bond.

buffness

Hmm
I opened this account on the 10th November and due to personal circumstances I need the account closed and my money back!
There T&Cs state no withdrawals but I am currently trying to plead with them and wrote them a letter outlining that my circumstances have changed and hoping they will give me my money back!

Could I not say to them, because they are withdrawing the account that I dont want the account anymore? Just trying whatever I can to try and win this battle!

agsnu

buffness wrote: »

Hmm
I opened this account on the 10th November and due to personal circumstances I need the account closed and my money back!
There T&Cs state no withdrawals but I am currently trying to plead with them and wrote them a letter outlining that my circumstances have changed and hoping they will give me my money back!

Could I not say to them, because they are withdrawing the account that I dont want the account anymore? Just trying whatever I can to try and win this battle!

You are still within the 14 day cooling off period....

buffness

I did call Skipton and they said this certain account is exempt from the 14 day cooling off period and therefore not entitled to close the account. They did ask me to write to them outlining the circumstances and they would look at it on a personal basis. A letter was sent on 19th November (recorded delivery).

Someone kindly referred me to the following:

http://www.legislation.gov.uk/uksi/2004/2095/contents/made

Its a long read, but its The Financial Services (Distance Marketing) Regulations 2004.

It does state that within legal laws, anything that is opened without a face to face communication does have to abide by a 14 day cooling off period.

I will wait to see what Skipton say with regards to my letter, but if its still a no I will throw this at them.

I am also about to call Consumer Direct (Office of Fair Trading Helpline) to see what they say.

Will keep you posted

buffness

OK, my fault. They are closed on a Sunday
Silly me

opinions4u

I think this link covers the exception to right to cancel:

1) Subject to paragraphs (2) and (3), regulation 9 does not confer on a consumer a right to cancel a distance contract which is-


(a)a contract for a financial service where the price of that service depends on fluctuations in the financial market outside the supplier's control, which may occur during the cancellation period, such as services related to;

(i)foreign exchange,

(ii)money market instruments,

(iii)transferable securities,

(iv)units in collective investment undertakings,

(v)financial-futures contracts, including equivalent cash-settled instruments,

(vi)forward interest-rate agreements,

(vii)interest-rate, currency and equity swaps,

(viii)options to acquire or dispose of any instruments referred to in sub-paragraphs (i) to (vii), including cash-settled instruments and options on currency and on interest rates;

If a fixed savings rate is linked to swap rates (which it is) then this suggests it's excluded.

Skipton will probably have hedged against unfavourable interest rate changes too.

I'm no legal expert though - feel free to challenge!

psychic_teabag

They are being flexible about their rules wrt allowing addition deposits after the offer is withdrawn. While I haven't a clue how these things work (no idea what swap rates are), it rather suggests that they have flexibility in how they re-invest the deposits - they clearly can't know in advance how much money is coming in. If nothing else, they could easily deduct your money from new deposits before they actually reinvest it (though that could subvert all their automation systems).

Anyway, maybe you can turn something like this into an extra argument for your case ..? Or at least, an argument against any claim they make that they would suffer if they gave you your money back.

buffness

Hey guys, thanks for the responses.

I will try and use this but I do think I am fighting a losing battle as it does state in the link that the actual account I have opened does not count the interest rate and rate swops.

I will wait and see what they say from my initial letter and if not, will try using this but I am not holding my breath!

Its bad timing - I am facing redundancy and need my funds back in order for me and my family to survive! Just wish I never bothered putting it in as I deposited the money on the 10th November then had a letter on the 11th November (a day after) to say my job is on the line!

ChiefGrasscutter

I believe as part of the application process you were probably asked very approximately how much you were likely to be saving in the account.

I myself am sort of aware (without the details) how the societies hedge such matters to ensure they don't get kebbabbed by interest rate changes and assumed that the information provided on max likely savings was being used/required to set up the hedge.
This will enable them to decide how long to hold the account open for further deposits.

(Naturally I always quote a fictitious small figure I know to be incorrect to such questions)