Maturing Regular savers

esutg

Hi all,

I have a Regular Saver account which I opened on 22 May '06 and also paid an opening deposit. The next payment was by standing order at the beginning of the next month and so on.

Now, come 1st April '07, my 11th and should be final standing order will filter through. But with the account maturing on 22nd May '07, I have a potentially '12th' standing order on 1st May '07. Do I need to cancel the standing order after my 12th payment, will the bank sort it for me automatically or have I got it all wrong?

bristolleedsfan

esutg wrote: »

Hi all,

I have a Regular Saver account which I opened on 22 May '06 and also paid an opening deposit. The next payment was by standing order at the beginning of the next month and so on.

Now, come 1st April '07, my 11th and should be final standing order will filter through. But with the account maturing on 22nd May '07, I have a potentially '12th' standing order on 1st May '07. Do I need to cancel the standing order after my 12th payment, will the bank sort it for me automatically or have I got it all wrong?

depends how you worded your standing order instruction if you worded it as an example first payment on 1st june 2006 followed by 10 more payments etc etc etc then it would stop automatically after the stated no of payments. once you are sure that the eleventh payment ( completing your 12th in all) has been taken wouldnt hurt to write a letter to your bank cancelling the standing order ( or enquiring with them as to the instructions they hold re the SO)

Afahmaep

esutg wrote: »

Hi all,

I have a Regular Saver account which I opened on 22 May '06 and also paid an opening deposit. The next payment was by standing order at the beginning of the next month and so on.

Now, come 1st April '07, my 11th and should be final standing order will filter through. But with the account maturing on 22nd May '07, I have a potentially '12th' standing order on 1st May '07. Do I need to cancel the standing order after my 12th payment, will the bank sort it for me automatically or have I got it all wrong?

You need to state which Regular Saver it is. From personal experience over the last two years, at least 4 Regular Savers have allowed and paid out on the full amount on 13 payments.

Beate

Personally I would cancel after 12 payments have been made. Easily done by Internet banking.

Mikeyorks

It's not unusual .. most such accounts will finish with 13 payments in the first year, if you don't act to prevent it. Read the T&Cs for the account and find out what they say??

But the general theme is that you vary the SO date to avoid the 13th payment going in. And re-set it to make a first payment shortly after the anniversary date (assuming you're continuing into a 2nd year) - and monthly thereafter. The problem only arises in the first year ... if you do that.

ED

esutg - Beware if the Regular Saver is with Principality Bdg Society. In the event of a 12th Standing Order (ie 13th deposit including opening cheque) the funds will 'bounce' back (possibly after several days or longer). In my family's experience, the Society does write alerting customers, but the letter sometimes arrives too late, especially for those of us timing SO's to arrive at month-start! If your account is with another provider, perhaps you could identify it to us - maybe we can research the Terms for you.

esutg

Thanks for everyones replies :T

But I'm a little confused. The regular saver I have is from Halifax (7%). Does it mean I should cancel the SO after the 12th payment and start a new SO just after the anniversary and continue one month after with payments?

I can't seem to find the Terms and conditions on the website at the moment so any help would be thankful.

Careful_ly

With Halifax the funds will all be swept across to the nominated account on anniversary date, plus your interest.
If I were you I would adjust the May payment standing order to arrive after this date, then once this payment has been made adjust the monthly date back to the 1st for June.

HTH