Skipton Building Society Questions and Answers

adindas

Well, the scenario that I am explaining is quite common.

If you have money to pay small sum like £500.00, it will normally come from your bank a/c where you pay your salary or you where you do your daily spending, is not it ??.
The interest here is next to none. Unless you have Vantage which very little people have it.

When you have about £6,250.00 you could invest it to fixed rate saving bond, or fixed rate cash ISA you could find it for 3% net equvalent to about 3.73% interest.

There is no doubt about switching the second payment to 1st date of the month, many could see that you are moving it forward to so you have possibility to earn mpre interest for several days.

But waiting until the end of the day of the month to open your account although donot eran any interest at all it not correct.

ADINDAS

VT82 wrote: »

In ADIDNAS's argument, it is not reasonable to assume you would get 0% on your savings until 30/11/2010, but that you can reinvest in a high interest savings account after 20/11/2011. That is where the argument falls down.

cloud_dog

Ultrawomble is both correct and less correct.

If you only come in to the money on the 30th and start the RS then UM is correct.

If you have the cash sat in your bank account for 30 days waiting to start the RS on the 30th then there are opporunity costs / loss of interest; which Snowman has adequately described.

Edit: Just to say I think the comments regarding Caroline / Skiptons correctness (or not) is a bit over the top. I think UM has identified a possible opportunity to make a few extra pounds but you cannot ignore the opportunity costs. Also account information needs to be as simple and clear as possible. Just based on the posts on here if Skipton includes this advise I can only see mayhem for the general public.

Skipton_Building_Society_Representative

Dear all,

Partly in response to VT82’s question, I have been pleasantly surprised by the volume of discussion on this thread – and it is fair to say it’s taking quite a lot of time to keep up!

As you may have expected, I do have a ‘day job’ and so answering your more in-depth questions often involves me asking my colleagues for information to do so. So if some answers take a little longer than others, please be assured I’m working on them as quickly as I can. Also I hope you’ll appreciate that our head office is open Monday to Friday so I won’t be able to respond over weekends.

As I won’t be at my desk for the next couple of days, I have asked some of my colleagues to help out on this forum – so you might see some other names on the messages, but they will always respond using the ‘Skipton Building Society Representative’ login.

I hope this helps,

Caroline

Skipton_Building_Society_Representative

SnowMan wrote: »

But please can you confirm my reading of clause 8 is correct i.e. closure at any time (regardless of whether 5% rate is dropped) without penalty, (e.g. if the account is closed a month after the variable rate drops the last month's interest to closure will be at the lower variable rate and the rest of the interest from payment date to interest change will be at 5%)?

Thanks

SnowMan

edit: just been into the local branch and opened an account. Very impressed with the set up and ease of opening the account. Told me about other products that Skipton are offering but none of that annoying hard sell stuff :T

Hi Snowman,

A customer can close at any time without penalty and they would receive any accrued interest at a rate of 5%AER. If we were to change the rate and the customer subsequently closed the account, the interest would be calculated at the original rate (5%AER) to the date that the rate changed and then at the new rate of interest thereafter as we calculate our interest on a daily basis. Again, there would be no penalty for closure.

I hope this helps,

Caroline

Skipton_Building_Society_Representative

calypso_rhapsody wrote: »

Skipton_Building_Society_Representative wrote: »

We are currently looking into offering a BACS facility for maturing funds next year to make this process easier for customers.

Thanks for your prompt reply Caroline - a BACS transfer would be most helpful and i think fairer to your savers. As it is, you will send me a cheque on the maturity date - it should arrive the next day about noon. I probably can't get to the bank for a day or two (it's a 12 mile drive) then it takes 3 working days to clear - but almost certainly there's a weekend so that's 5 days. In the end i lose over a week's interest. Plus there's the risk that the cheque went astray in the post in the first place ....

As both my husband and i have accounts maturing next week, we would have to pay £50 to get the money electronically ... though i did point out to the chap on the 'help desk' that if we transferred the money into one account before transferring the funds then it would be only £25. He agreed - but had not offered it as a suggestion himself. So the letter to instruct you to do this is winging its way to you.

Out of interest, why are you 'looking into offering BACS' and why does it take time to introduce - surely it should be a no-brainer and could be implemented almost immediately (though maybe not in time for my maturity next week!)?

Dear calypso rhapsody,

I can appreciate that from your point of view this is a no-brainer.

Because this process is automated due to the volumes involved, changing to BACS involves work on our systems and obviously then testing those systems in the background to make sure it’s working as it should before launching the service to customers.

I hope this helps,

Caroline

ultrawomble

SnowMan wrote: »

Of course in the 1st December example you can invest each of the subsequent £500 payments in an instant access account at say 3% for a month as they are paid a month later than the 30 November example. So if we are making any sort of meaningful comparison the gain is perhaps £7 not £17 net.

So, operating 1 account I'm still £7 up on you operating 2 accounts

SnowMan wrote: »

Don't suppose there's any chance of calling a truce and reverting to Q and A for the Skipton representative............?

Agreed.:j

johnmoney05

Hi, anyone knows what the account number and sort code for the Regualr saver account to make deposit? Thanks

calypso_rhapsody

Yes Caroline i do appreciate that systems changes take time ... but first you have to decide to make the changes - am i right in taking your answer to mean that you are in fact going to introduce BACS and not just thinking about it?

It would be great if it were in place when our 3.3% Ebond matures - though even better would be if you were offering such good maturity rates that i did not want to move the money (it does strike me as odd that i could get a better rate by opening a new bond than by rolling over my maturing bond ... but no doubt you have your reasons!)

patriick

johnmoney05 wrote: »

Hi, anyone knows what the account number and sort code for the Regualr saver account to make deposit? Thanks

I've removed the details as I'm not sure if this was a good idea, I could have put any account here

I'll let the Skipton representative put the details up.

Pat

patriick

Duplicate post