Yorkshire BS Regular Saver with bonus opened 2007

earthlover

I recently received a letter from YBS informing me that unfortunatel (for me) my Regular Saver had exceeded the £20,000 limit. It was this years interest that had put the account over the limit.

On reading the letter I withdrew £1000 to bring the account back under the limit, but this has counted as the 1 allowed withdrawal for this current account year, as it was done on 3rd of the month.

I expect I will now miss out on the next bonus next June. I have now made an instruction to send future interest to my other bank account instead of going back into the Regular Saver, but my concern now is if the payment of interest out next June will count as a withdrawal, not so much for this next year but for future years.

Does anyone know if payment of interest out of the Yorkshire BS Regular Saver will count as a withdrawal and will affect bonus payments?

redux

Surely you could leave it a year or two before needing to make the next withdrawal?

colsten

What is your currently effective interest rate on that YBS account, and what conditions are attached to that rate? Are you / will you be entitled for gross interest?

oldfella

I count myself fortunate to have one of these, bumping along each year just under the 20K limit.
I have a vague memory of calling them to ask the question about does interest paid automatically elsewhere count as a withdrawal and I think the answer was no. But it may still be counted within the 20K deposit limit so best play safe.
Would be best to call and check anyway.

skitskut

I wouldn't have thought it would count as a withdrawal as the interest is being paid to another account (it's not being added to the regular saver in the first place). If you are registered online with them it would be worth asking via the secure messaging facility. I had the same letter last year but in my case it was the gross amount of interest taking the balance over 20K and then the tax deduction bringing it back under 20K which was deemed OK.

Prudent

I have one of these accounts. My understanding is that only one withdrawal can be made of any kind in a year. I used to pay my year's allowance into my cash ISA once a year until the ISA limits jumped so much. Now I take out £6000 plus the interest once a year, usually in April.

oldfella

just a note in case others havent noticed, you only need to deposit £10 per month, so you can keep the account earning 3.75% on £19K plus all year.

earthlover

Thanks very much to everyone who replied.
The reason I asked here is because I did call YBS customer services back around 2010 when I realised the account would reach £20,000. The agent told me that I would still get the bonus if it was only the interest paid into the account that would make it go over the limit. What she didn't tell me is that the bonus for the following year WOULD be affected. That's what seems to have happened to me. I have got the bonus for account year ending 1 June, but suspect I won't get the bonus next 1 June. As I don't now trust their customer services to give correct information I thought I would see if anyone here had experience of having interest paid to a different account.
Up until this year I made 1 withdrawal at the end of the year to stay under the limit but completely forgot this year.

I think it's a shame that YBS can only write a letter immediately after your account goes over the limit. Pity they cannot write a warning letter just before.
I think it is remiss of YBS not to make it clear where interest paid out is concerned.
I will call and ask the question. I will post when I find out.

Speculator

oldfella wrote: »

just a note in case others havent noticed, you only need to deposit £10 per month, so you can keep the account earning 3.75% on £19K plus all year.

Just realised my account is approaching the £20K limit and found this thread from last year.


As soon as my account reaches £19.5K , I am going to ask for the interest and bonus to be paid to an external account, reduce my payments to £10 per month and make a £500 withdrawal every 4 years to keep it under £20K. Just need to mark on my spreadsheet the date I need to make the withdrawal.


I will also send an online secure message to confirm interest payment to an external account does not count as a withdrawal.

lucky77

I narrowly avoided going over the savings limit last year and asked for the interest to be paid away to my bank. This does not count as the one withdrawal allowed.


However only the variable rate interest of 0.25% was paid away. I queried this and the reply stated: " The fixed conditional bonus interest of 3.5% cannot be paid away."


So anyone close to the savings limit needs to ensure they make a withdrawal before the end of their account year sufficient to cover their forthcoming interest, bonus interest and allow say £120 to be paid in over the next account year.

bristolleedsfan

earthlover wrote: »

I think it's a shame that YBS can only write a letter immediately after your account goes over the limit. Pity they cannot write a warning letter just before.
.

Y.B.S wrote to me last year when balance was around 19000 level to say .....