Loughborough BS 8% Regular Saver

mary

Yes, rang them and was told Loughborough Building Society re A B Smith

InMyDreams

stphnstevey wrote: »

How long is this account? I can't find anything on the website that states the length, only they garantee a rate till 2009. Does this mean it could go on longer than 2 yrs?

Interesting question! I found this...

• Accounts closed within 12 months of the account open date or part way through any subsequent year will receive closing interest at the lower rate.

"any subsequent year", to me implies that there can be more than just one subsequent year. Ie, the account can be kept open indefinately! Wow! Having said that, no guarantees on the interest rate after March 09, so in practice I suspect that after 2 years it won't end up being worth while, but hey, nothing to loose. And of course if they reduce the rates half way through the following year (in October, say), to qualify even for the new lower rates for the rest of the year you'd have to keep the account open until the anniversary or the whole of that last part-year will then have earnt at an even more reduced rate. Sounds a bit risky to me, but worth taking out and seeing what they promise in March 09, I suppose.

Edit: I mean risky once the 2 years is up without any further guarantee.

stphnstevey

My philosophy is, you have got to be in it to win it!

They could reduce the rates, but so could everyone else. If they reduce the rates too far (ie lower than instant access savings now), then no one will sign up next year.

I think worth the risk (but here comes another rollercoaster!)

oldfella

Originally Posted by stphnstevey
How long is this account? I can't find anything on the website that states the length, only they garantee a rate till 2009. Does this mean it could go on longer than 2 yrs?

---

asked them this today - it rolls indefinitely - only issue is the guarantee of 2.5% above BOE which lasts until March 2009.

RayWolfe

oldfella wrote: »

asked them this today - it rolls indefinitely - only issue is the guarantee of 2.5% above BOE which lasts until March 2009.

Presumably no top limit like the others, Yorkshire etc.?

stphnstevey

RayWolfe wrote: »

Presumably no top limit like the others, Yorkshire etc.?

Yorkshire BS RS only lasts 3 yrs - this could potential be alot better

thumshie

stphnstevey wrote: »

Yorkshire BS RS only lasts 3 yrs - this could potential be alot better

Is it not 3 Years if you pay in the max £500 a month?? If you pay in £50 a month it'd be 30+ years till you get the £20,000 limit??

Afahmaep

thumshie wrote: »

Is it not 3 Years if you pay in the max £500 a month?? If you pay in £50 a month it'd be 30+ years till you get the £20,000 limit??

There are actually 2 Yorkshire BS Regular Savers on the go.
The first was for 3 years with a £100 per month limit but was closed to new investors (although still running) prior to the newer £500 max per month offering coming along with the £20k upper limit. Crossed wires maybe.

oldfella

Presumably no top limit like the others, Yorkshire etc.?

---

apparently not - but you have to assume they will release a new version and the interest rate on this will plummet after 2009

re YBS - you can keep it under the 20K limit by a small withdrawal each year.

RayWolfe

oldfella wrote: »

apparently not - but you have to assume they will release a new version and the interest rate on this will plummet after 2009

re YBS - you can keep it under the 20K limit by a small withdrawal each year.

Thanks for that.
Of course the withdrawal from YBS could be for a larger amount just before you reach 20K. That would enable you to keep close to 20K like a very high rate deposit account.