Saffron 'Christmas Regular Saver' [matures 14 Nov 2011]

Milarky

http://www.saffronmb.co.uk/savings/display.product.php?categoryID=1&category=general&productID=g5

You don't get interest. In fact, you don't get your money back! The value is exchanged for 'Love 2 Shop' vouchers (your £550 stake plus £40) instead

The nominal return is impressive (between 13.4% and 15.8%, depending the time in the month you make deposits.)

Access to cash without interest at any time up to maturity.

But this is a very unconventional savings account.

Is this the future shape of 'saving' I wonder?

Loughton_Monkey

Tax free as well, I assume.

I guess they have negotiated buying £590 of vouchers for only £550.

oramgepekoe

Interesting if it is tax-free.

It says 'You must collect your vouchers from your chosen Saffron Building Society branch'.

opinions4u

List of branches. I'm out!

What happens if the firm providing the vouchers does a Farepak the day after they are collected? I'd prefer hard cash thank you.

Saffron_Team

Loughton_Monkey wrote: »

Tax free as well, I assume.

I guess they have negotiated buying £590 of vouchers for only £550.

Hello Loughton Monkey

The £40 in vouchers are paid to you net of tax. (So Saffron has already paid the tax as per a standard savigns account.)

We have negotiated a bulk buying discount and all of this benefit plus some additional funds from ourselves are used to make the £40 net payment.

Hope that helps.

Saffron Team

Saffron_Team

opinions4u wrote: »

I'm out!

What happens if the firm providing the vouchers does a Farepak the day after they are collected? I'd prefer hard cash thank you.

Hi Opinions4u

If Love2Shop vouchers suddenly disappear we will provide an alternative for you. This is stated in the accounts Ts and Cs.

We'd love to be able to post out vouchers but sadly this would have increased costs (thereby reducing the thank you payment) and we had concerns on how to ensure all vouchers definitely reached people.

Sorry we couldn't help you this time.

Saffron Team

Saffron_Team

oramgepekoe wrote: »

Interesting if it is tax-free.

It says 'You must collect your vouchers from your chosen Saffron Building Society branch'.

Hi Oramgepekoe
The £40 in vouchers are paid to you net of tax. (So Saffron has already paid the tax as per a standard savings account.)

I hope this is useful.

Saffron Team

Loughton_Monkey

Saffron_Team wrote: »

Hello Loughton Monkey

The £40 in vouchers are paid to you net of tax. (So Saffron has already paid the tax as per a standard savigns account.)

We have negotiated a bulk buying discount and all of this benefit plus some additional funds from ourselves are used to make the £40 net payment.

Hope that helps.

Saffron Team

Ha!

Straight from the horses mouth. Thanks.

Bring back Green Shield Stamps. All is forgiven.

alanq

Saffron_Team wrote: »

Hi Opinions4u
If Love2Shop vouchers suddenly disappear we will provide an alternative for you. This is stated in the accounts Ts and Cs.

I assume that is what would happen if Love2Shop ceased trading before the vouchers were issue. The question was "What happens if the firm providing the vouchers does a Farepak the day after they are collected?"

Love2Shop is run by Park plc which was founded as a Christmas hamper company but has since diversified. It seems that customers have some protection against in that most of customer funds are held in a trust.
http://www.parkcatalogue.co.uk/AgencyOnlineWeb/saving/member-of-cpa.jsp

£40 net on an average balance of £275 over 11 months seems a good return provided that the shops that accept the vouchers offer the goods that you want at competitive prices. N.B. Vouchers have an expiry date but that is said to be at least 18 months after issue.

Might be worth considering if one is near to a Saffron BS branch.

SaffronBS

Please note this product has been withdrawn.

Saffron Building Society is now posting as SaffronBS rather than Saffron Team.