Skipton Building Society Questions and Answers

slush

Hi Johnmoney05,

Thank you for your response.

However, it is Caroline's response that I am looking forward to reading the most.

Regards, Slush

PS Already found better deals... but always got room for some more good deals. ;-)

apt

Slush, Caroline won't be able to say anything apart from variable rates are variable. However, the money is not tied in as you can close your account without notice or interest penalty. With previous variable rate Skipton regular savers like the Christmas Saver and Special Saver they tended to move in line with base rate changes.

Chadsman

Why is MSE doing this for Skipton and not any other bank/building society?

The Skipton branch in Sutton Coldfield used to be a 'cashless' branch- ie: no cash transactions were permitted- is this this still the case and are there still any cashless branches?

D1zzy

Chadsman wrote: »

Why is MSE doing this for Skipton and not any other bank/building society?

I believe they would if any other institution registered with them and offered to provide the service that Caroline is providing. If you remember all this began with Caroline providing answers to questions & then someone pointed out that she needed MSE's authorisation. She then disappeared and has now made a thankful return with MSE's approval.

Well done Skipton!

slush

apt wrote: »

Slush, Caroline won't be able to say anything apart from variable rates are variable.

Skipton have made a conscious decision to make their rate variable, even for such a short life product.

Similarly, they have chosen to avail themselves of this forum to answer questions.

Accordingly, I look forward to her response to my question. ;-)

Regards, Slush

calypso_rhapsody

I'd like to ask why Skipton (and, to be fair, many other BSs) insist on sending cheques out if savers decide to withdraw funds on the maturity of a fixed bond. The charge for an electronic transfer is an extortionate £25. They're happy to have our funds in by electronic transfer or even by debit card .... but not to return our money in the same way.

I think the whole issue of treating savers fairly at maturity or when they want to close accounts is an area that the FSA should look at - very often there are underhand attempts to keep the money, at low interest rates, for extra days (the Post Office was a particular case in point) etc etc. HSBC once insisted that i had to visit a branch in order to close an on-line savings account - what on earth is all that about? I don't expect the Skipton rep to deal with other banks' positions but some recognition that treating withdrawing savers fairly is proper business behaviour would be good - after all we might return sometime!

Skipton_Building_Society_Representative

slush wrote: »

Hi Caroline,

Thanks for coming on here and answering all our questions.

The new RS looks very tempting. However, I see that the great interest rate of 5% is variable.

So when Skipton has reached its target with account, the customer is at risk of the bottom falling out of the rate and whilst still being tied in to 12 months saver.

Have I mised an important point something? If so, I'll get my paperwork filled in and away in the post.

Or could this Skipton RS be another "suck 'em in, then slap 'em down" deal? Maybe I seem cynical, but why else would the account be variable? Otherwise it would be a fixed rate and that particular "issue" of the RS closed when rates needed to change.

Hopefully you'll show me the solution to my concerns.

Regards, Slush

Hi slush,

Thanks for your question.

The variable regular saver rate will be monitored as with any other variable account and follow the same rules around notification of changes that apply to all variable accounts. It is not our intention to be anything other than clear, open and genuine with the offer.

I hope this helps,

Caroline

SnowMan

Skipton_Building_Society_Representative wrote: »

Hi slush,

Thanks for your question.

The variable regular saver rate will be monitored as with any other variable account and follow the same rules around notification of changes that apply to all variable accounts. It is not our intention to be anything other than clear, open and genuine with the offer.

I hope this helps,

Caroline

Hello Caroline

Thanks for coming on the forum and answering questions.

Presumably if the variable rate is reduced for existing accounts then Skipton will allow investors the opportunity to close their account without penalty (i.e. 5% accrued to date of closure)? My reading was that condition 8 of the further terms allows a saver if the rate is dropped to immediately close the account and get 5% to date of closure. If that is the case then all seems fair enough albeit some people will have wasted their time opening an account that they then have to close soon afterwards because the rate that enticed them is dropped.

If you just drop the rate from 5% without the closure option then that would of course be an infringement of the unfair terms in consumer contracts legislation, which prevents an organisation advertising a rate of 5% tie-ing people in and then arbitrarily reducing the rate; something an investor couldn't plan for in advance (hence condition 8, I guess which seems to say there is no tie in here).

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

Skipton_Building_Society_Representative

dach wrote: »

Don't bother turning up without an appointment!!
Having made a trip over to Lincoln to open my regular saver I was pleased to see the branch completely empty of customers and 3 representatives sat at desks waiting for me at 12.45pm
I told one of them I was their to open a regular saver she asked if I had made an appointment when I said I had not she told me they didn't open savings accounts without an appointment
I explained I had travelled especially to open the account she then said if I came back at 3.00pm she might see me to open an account. Her colleague said I could have a form and post it back to them with proof of my identity, which is what the trip to the branch was meant to avoid!!
I said I wouldn't bother and Skipton have lost a customer, surely this is not the policy in all branches is it??

Hi dach,

Thanks very much for letting me know about this.

I have not been in touch with this branch but I have talked to the Head of Branch Operations. What you describe is not our policy and this has since been reiterated to the whole branch network last night.

I apologise for the inconvenience caused.

Thanks,

Caroline

adindas

Dear ultrawomble

I could see the point this has also been explained in the previous thread.

Imagine the following case which applicable to alot of people.
- You just happen to know let say 10 November 2010.
- Your situation is your mony is currently in the current a/c which earn 0% interest rate.
- By waiting until the end of the month you will loose THE OPPURTUNITY COST" of potential earning interest for 20 days if you wait until the end date of the month.
- On the following month (December) you could still switch your SO back 1 December.

In this case, I think you will be better off if you pay as soon as possible and then later switch it on the 1st date in the following month.

This is just my though, please comment it.

ADINDAS

ultrawomble wrote: »

OK, let's assume that the rate stays at 5% for the year and I pay no tax on the interest so I receive it gross.

Option 1
If I open the account on the 1st December 2010 with £500 and make 11 further payments on the 1st of each month (total saved = £6000), and the account matures on the 1st Dec 2011 I'll receive about £161 gross interest (~£129 after 20% tax).

Option 2
If I open the account one day earlier on the 30th November 2010 with £500 and make 11 further payments on the 1st of each month (total saved = £6000), and the account matures on the 30th Nov 2011 I'll receive about £184 gross interest (~£147 after 20% tax).

So, I'm £23 better off with Option 2 than with Option 1

Here's how it works:

Basically, you only get interest on each £500 payment for the time it is in the account.

With Option 1, I have the 1st £500 earning interest for 12 months; the 2nd £500 earning interest for 11 months; the 3rd £500 earning interest for 10 months etc.

With Option 2, I have the 1st £500 earning interest for 12 months; the 2nd £500 earning interest for 12 months, less 1 day; the 3rd £500 earning interest for 10 months etc.

As you can see from above, the 2nd payment in Option 1 only earns interest for 11 months, whereas in Option 2 it earns interest for effectively 12 months.