How long before YBS follow the rate rise?

Kazza242

Mr_Mumble wrote: »

moneyfacts seem to have the updated interest rates:

YBS e-ISA only up 0.15% to 5.80% :mad:

Yorkshire_Boy wrote:

Likewise, they're showing a 0.15% increase on the YBS Internet Saver to 5.70% AER.

Worryingly though, the YBS Regular Saver is still listed at 7.00%, ie no increase to either the underlying rate or the bonus.

Yes, it seems that they did a u-turn on their earlier decision to up their interest rates by the full 0.25%. Staff (in branch and the call centre) had told me that they'd received an e-mail that stated an increase of the full 0.25% for the eISA and regular saver - but when YBS' head office delayed sending out the confirmation e-mail it did look like they had done a u-turn on the whole thing. Very disappointing YBS, especially the EISA, with Kent Reliance passing on the full increase to 5.96% they've shot themselves in the foot there.

Kazza242

Ian_W wrote: »

I know YBS credit your account the day after they receive an inward transfer cheque - anyone know if Kent Reliance do the same?

I believe Kent Reliance wait two days before paying interest on an inward transfer cheque.

YorkshireBoy

Kazza242 wrote: »

...with Kent Reliance passing on the full increase to 5.96% they've shot themselves in the foot there.

Have they though Kazza (and I'm thinking transfers here)?

When I moved from Halifax to YBS earlier this year, I calculated that with the 0.35% increase (from 5.30% to 5.65%) it would take 15 days per day lost in the post to recover and 'turn a profit'. Luckily Halifax sent the cheque early in the week, and YBS credited for interest earning purposes as soon as they received it, so I only lost 2 days - meaning I was 'in profit' within a month.

With a 0.16% increase (in your example above), the same transfer now will take over 2 months to recover - under exactly the same circumstances as I mention above.

If a) they post the cheque on a Thursday/Friday, and b) Kent Reliance don't 'backdate', then we could be talking 4-5 months recovery time - that's if the base rate stays where it is...and how many people think that will happen?

YBS have been very calculating (read cynical) in my opinion.

RayWolfe

Very disappointing!
But, if they don't think they need to up the rates to get a higher volume of inflows when mortgage applications are dropping, then I suppose we shouldn't be surprised.
I only have an interest in the regular saver but they have a lot of my money via that. No one has matched their rate for an ongoing saver so why would they increase? I shan't be moving my money but I may reduce the amount I'm paying.
Ah well!

ED

I, too, am disappointed by the below par rise in Internet Saver rate. If Base Rate rises in June, I for one will write to Yorkshire Bdg Soc decision makers to add my little input urging a 0.35% rise for Internet Saver (amongst others) - and promptly. Afterall, Principality BS have managed to make their e-SAVER offer 5.85% gross. This renders Yorkshire BS uncompetitive.

Kazza242

Kazza242 wrote:

...with Kent Reliance passing on the full increase to 5.96% they've shot themselves in the foot there.

YorkshireBoy wrote: »

Have they though Kazza (and I'm thinking transfers here)?

Not so much for those savers, such as yourself, who already have an EISA because the rate YBS are offering is still better than Halifax's now 5.55% rate. However, for those people still with ISAs to transfer in - who were waiting to see which providers would be passing on the full increase - may now choose other options instead of YBS. At the moment I rate Kent Reliance - if savers don't mind not having online access to it. I know they don't backdate, but they are usually pretty efficient when handling transfers. They've passed on the last four BOE base rate increases in full - which is a pretty rare move as far as ISA providers go.

When a provider fails to pass on a BOE base rate increase in full it can sometimes show how far they are prepared to go in terms of rate. YBS have chosen to increase their margins here by only going for a 0.15% increase. I wonder how much they increased their mortgage rates by? Still, we shouldn't be too harsh on them. I still like YBS very much and still think their regular saver is the best currently available with it's £20K limit. Their E-ISA is still competitive too.

MiserlyMartin

I almost opened a Yorkshire ISA for my transfers in this year. In the end went for the Abbey one. I thought I would regret it. It shows that these things can be 'luck of the draw' regarding rates.

Ian_W

YorkshireBoy wrote: »

If a) they post the cheque on a Thursday/Friday, and b) Kent Reliance don't 'backdate', then we could be talking 4-5 months recovery time - that's if the base rate stays where it is...and how many people think that will happen?

Hmmmm!! Did the same calculation and if there was 5 days loss of interest, which on the face of it is quite likely, it would take 6 months for Mrs W's and my ISA to break even. Just our luck there will be an increase in IR later this year and having been the good guys for 4 consecutive rises KR will do a YBS!

Not going to be worth moving at the mo then, but loyalty to YBS now zero and next year will be looking to move if something better is on offer, whereas I would have been looking to stay if they were reasonably close to the best buys. Like Kazza I like the RS and I'd keep that going but move the ISAs.

dreams_of_paradise

I went into YBS today to open my regular saver and was told my the member of staff that the rates were going up again this sunday. Have now discovered this rise apparently only applies to the e-isa and internet saver. :mad: Disappointed is not the word.

Ian_W

Yes, that's the rise being discussed above. Though YBS haven't officially announced anything yet it appears from the comparison sites like moneyfacts that the internet saver and e-ISA are being increased by just 0.15% compared to BoE rate increase of 0.25%.
Regular saver doesn't appear to be increasing from 7%.