Yorkshire Building Society Regular Saver

Compound_2

Suze,

The question I’m asking is, what happens if your 13th payment reaches the account before 7 February 2008? Is it allowed, and what are the consequences?

The T&C (or actually the rather informal ‘key features’ – formal T&C are general savings conditions at YBS) state ‘Save a minimum of £10 up to a maximum of £500 each month. Earn a bonus rate of interest if you save in at least 11 months out of 12 in an account year ... An account year starts from the date of opening your account.’

So if you put in £500 pounds on 1 February, could you put in another £500 on 8 February as it’s a new year? If not, does that mean you’ve used up your right to one missed month in the second year?

If you had opened your account at the END of Feb 2007, you wouldn't have the flexibility to decide whether or not your Feb 2008 payment should be after the anniversary (or even on the anniversary if it's a Sunday). (Conversely, if you open your account on the 1st of the month, the 13th month doesn’t arise.)

On another point, can anyone confirm that it is very difficult to access the interest in this account, because by the time it's paid you'd be using up your one penalty free withdrawal at the start of the second year?

gelato_cat

Compound wrote:

The question I’m asking is, what happens if your 13th payment reaches the account before 7 February 2008? Is it allowed, and what are the consequences?

Hm. I can't remember what it says in the T&C but I would have thought it would be OK.

Actually, I've just remembered something. You can make as many deposits in a month as you want, as long as you don't put in more than £500 in a calendar month. So that adds another dimension to it.

Compound wrote:

The T&C (or actually the rather informal ‘key features’ – formal T&C are general savings conditions at YBS) state ‘Save a minimum of £10 up to a maximum of £500 each month. Earn a bonus rate of interest if you save in at least 11 months out of 12 in an account year ... An account year starts from the date of opening your account.’

So if you put in £500 pounds on 1 February, could you put in another £500 on 8 February as it’s a new year? If not, does that mean you’ve used up your right to one missed month in the second year?

I might write to them and ask - I can't see any other way of getting the definitive answer!

Suze

bristolleedsfan

Compound wrote: »

Suze,



So if you put in £500 pounds on 1 February, could you put in another £500 on 8 February as it’s a new year? If not, does that mean you’ve used up your right to one missed month in the second year?

If you had opened your account at the END of Feb 2007, you wouldn't have the flexibility to decide whether or not your Feb 2008 payment should be after the anniversary (or even on the anniversary if it's a Sunday). (Conversely, if you open your account on the 1st of the month, the 13th month doesn’t arise.)

On another point, can anyone confirm that it is very difficult to access the interest in this account, because by the time it's paid you'd be using up your one penalty free withdrawal at the start of the second year?

if u open the account on 1st feb then 2nd feb onwards following year would be new year ( im not sure about 1st of following year) ( 12th month would be the following january payment so feb payment following year would be 1st payment of new year not 13th payment

if someone opened an account on 8th feb one year they wouldnt be able to make a payment until after 8th feb the following year


sunday 1st thing happens anyway we couldnt make the april payment till monday 2nd

cant u elect to have interest paid direct to your bank account so then its not counted as a withdrawal, personally id rather have it added to account and draw cash from elsewhere as yorkshires rate on RS i believe will remain top rate out of all the variable rate RS

Compound_2

bristolleedsfan wrote: »

if someone opened an account on 8th feb one year they wouldnt be able to make a payment until after 8th feb the following year

Are you sure about that? So if someone opened an account on 31 March 2007, they couldn't pay in during March 2008 at all (31 March 2008 being a Sunday)?

cant u elect to have interest paid direct to your bank account so then its not counted as a withdrawal

Brochure says interest is added to account on anniversary - nowhere on form to choose otherwise.

gelato_cat

I was just composing an e-mail to YBS about this and couldn't remember what the issue at hand was. If I opened my account on 7th Feb, all I need to do is make sure the Feb 2008 deposit reaches the account on or after 8th Feb 2008, no?

Suze

Suzey wrote: »

If it helps:

I opened my account on 7th February and handed over a cheque for £500. I asked the guy if it was one deposit per calendar month and he said yes. I said "so the earliest I can make my next deposit is 1st March". He agreed.

I transfer money in as close to the first of each month as I can, so my first payment was on 7th February by cheque and my 12th one will be on 2nd January 2008. I'll carry on into the second year, my 13th payment being on 4th February 2008 - which will probably reach the account after the 7th.

Suze

Compound_2

The question is, what happens if you deposit £500 from 1 to 6 February (and even 7 February)? Could you make another deposit between 8 and 28 February, because it is a new account year? If not, have you used up your right to miss one monthly deposit in the new account year?

gelato_cat

I have a feeling that, if I ask them, they're just going to write back and say that after 1st January 2008 my next deposit should be on or after 8th February.

Unless, of course, your real question is "can you make 13 deposits in an account year?"

Suze

Compound wrote: »

The question is, what happens if you deposit £500 from 1 to 6 February (and even 7 February)? Could you make another deposit between 8 and 28 February, because it is a new account year? If not, have you used up your right to miss one monthly deposit in the new account year?

bristolleedsfan

Suzey wrote: »

I have a feeling that, if I ask them, they're just going to write back and say that after 1st January 2008 my next deposit should be on or after 8th February.

Unless, of course, your real question is "can you make 13 deposits in an account year?"

Suze

perhaps ive misread the conversation, if first payment was made on 7th feb 2007 then 12th calender monthly payment would be on whatever date in january 2008

therefore first of new monthly payment year would be on whatever date in february 2008

yorkshire BS reg saver payments dont have to be made on same date of each month

Compound_2

bristolleedsfan wrote: »

therefore first of new monthly payment year would be on whatever date in february 2008

yorkshire BS reg saver payments dont have to be made on same date of each month

The the date of monthly deposits doesn't matter, but the account year runs from the anniversary date. The account year is important for withdrawal and missed payment allowances.

Suze: Of course '13 deposits' is the real question. I don't think they'd reply 'on or after 8th February' but rather 'on or after 7 February'. The date of opening e.g. 7 February 2007 is part of year 1, so anniversary 7 February 2008 has to part of year 2, otherwise 1 year = 1 year + 1 day.

It's also necessary to ascertain what happens when the account is opened on the last day of the month, and the anniversary falls on a Sunday. This makes the 'on or after' option useless.

gelato_cat

Compound wrote: »

The the date of monthly deposits doesn't matter, but the account year runs from the anniversary date. The account year is important for withdrawal and missed payment allowances.

Agree.

Compound wrote: »

Suze: Of course '13 deposits' is the real question. I don't think they'd reply 'on or after 8th February' but rather 'on or after 7 February'. The date of opening e.g. 7 February 2007 is part of year 1, so anniversary 7 February 2008 has to part of year 2, otherwise 1 year = 1 year + 1 day.

Agree - I got the date wrong. I doubt they would allow 13 deposits, as they make it clear no more than £500 is to be saved each calendar month. I assume that if you try and deposit more than £500 in any month, the excess would be sent back.

Compound wrote: »

It's also necessary to ascertain what happens when the account is opened on the last day of the month, and the anniversary falls on a Sunday. This makes the 'on or after' option useless.

As I didn't open mine at the end of the month, this doesn't apply to me.

Suze