Leeds Building Society Regular Saver (Issue 4)

bundoran

The Terms and Conditions for Leeds Regular Saver Issue 4 say the following:

"The maximum investment balance is £6000 (excluding accrued interest). If the balance exceeds £6000 (excluding accrued interest) the interest rate that shall apply to the whole balance will be 0.50% Gross p.a./AER (variable)."

aj23_2

bundoran wrote: »

The Terms and Conditions for Leeds Regular Saver Issue 4 say the following:

"The maximum investment balance is £6000 (excluding accrued interest). If the balance exceeds £6000 (excluding accrued interest) the interest rate that shall apply to the whole balance will be 0.50% Gross p.a./AER (variable)."

But if you stop at £6,000, what happens? What rate is applied?

Yeah 0.5% is the rate of the Easy Access saver. So it essentially means maturity lol

tg99

aj23 wrote: »

But if you stop at £6,000, what happens? What rate is applied?

Yeah 0.5% is the rate of the Easy Access saver. So it essentially means maturity lol

If you stop at £6,000 you will continue to get the 2.55% as you have not exceeded £6,000. Though this is on the assumption you do that one off withdrawal of £600 then start putting £50 pm back in.

bundoran

aj23 wrote: »

But if you stop at £6,000, what happens? What rate is applied?

Yeah 0.5% is the rate of the Easy Access saver. So it essentially means maturity lol

Well to get the bonus rate you need to pay in between £50 and £250 each month, your balance mustn't exceed £6000 excluding accrued interest, and you can only make one withdrawal per bonus period, which runs from 1 September to 31 August each year.

So if you stick at £6000 you wouldn't be paying in each month at the correct rate, and so you wouldn't be eligible for the bonus rate.

pafpcg

aj23 wrote: »

..... if you can, go to branch on 31st August (the day interest is paid) get the book updated with the interest and withdraw £600 (last day of the bonus period)

Well, yes, that would work IF the interest is credited BEFORE you ask for the book update. I suspect, but don't know for certain, that interest will be credited AFTER close-of-business on the 31st and won't be visible on the on-line account (my only practical point of access) until 1st September anyway.

My plan is, after the August standing order has been credited, to reduce my standing order to the minimum of £50pm from September, over-estimate the amount of interest to be credited and to make the withdrawal in the last week of August. Once the interest and September standing order have been credited (visible on 4th September), I'll amend the standing order for October to top-up the account with extra funds so that the remaining £50 monthly payments will give an account balance of £5990 in August 2019, when the cycle will be repeated. But my experience with previous LeedsBS regular savers is that they'll close the account......

aj23_2

tg99 wrote: »

If you stop at £6,000 you will continue to get the 2.55% as you have not exceeded £6,000. Though this is on the assumption you do that one off withdrawal of £600 then start putting £50 pm back in.

Yeah I was gunna say, I don't think they will let you just let it sit at £6,000 as it will cost them. They either want you to go above and pay 0.5%, close it or withdraw and re-deposit.

aj23_2

pafpcg wrote: »

Well, yes, that would work IF the interest is credited BEFORE you ask for the book update. I suspect, but don't know for certain, that interest will be credited AFTER close-of-business on the 31st and won't be visible on the on-line account (my only practical point of access) until 1st September anyway.

My plan is, after the August standing order has been credited, to reduce my standing order to the minimum of £50pm from September, over-estimate the amount of interest to be credited and to make the withdrawal in the last week of August. Once the interest and September standing order have been credited (visible on 4th September), I'll amend the standing order for October to top-up the account with extra funds so that the remaining £50 monthly payments will give an account balance of £5990 in August 2019, when the cycle will be repeated. But my experience with previous LeedsBS regular savers is that they'll close the account......

That's why I said go in, get it updated, and then withdraw. It's paid on 31st in the bonus year, which is the last day.

if they were going to close it, I think they would have sent letters by now.

Also, if you only deposited the minimum of £50 since opening, you'd only be at £1,100 by now. It would take you 10 years to reach £6,000. So I don't think they will close it.

badger09

aj23 wrote: »

Just saying what a LBS employee told me. If anyone else can ask in branch, or DM them on Twitter, or phone a branch for clarity on Issue 4, then it would be appreciated by all of us.

Perhaps by 'exceed' they mean that's the cut off point for your own deposits excluding interest.

My nearest branch is 30 miles away. Besides, I prefer to rely on the account's T&Cs, rather than on what a random member of staff might tell me:cool:

bundoran wrote: »

The Terms and Conditions for Leeds Regular Saver Issue 4 say the following:

"The maximum investment balance is £6000 (excluding accrued interest). If the balance exceeds £6000 (excluding accrued interest) the interest rate that shall apply to the whole balance will be 0.50% Gross p.a./AER (variable)."

schiff

A rather novel idea from The Nottingham (by letter) about the maturity of their Tigers RS. There is a follow on RS to which you can move your maturing funds but the interest rate is 1.5%, you can continue to add up to £250 per month (they don't specify a minimum), BUT you can't make a withdrawal until 30/11/2019.

The alternative is to close the account. By letter or a visit to the branch. I doubt if there will be a FP or cash alternative. They don't say.

With Bank of Scotland and Santander paying that rate of interest on bigger sums it's not unattractive.

Wrong thread - repeating it in the right place.

kb49

FIRST and ONLY POST

In branch (Birmingham) when I said that I will be reducing my balance next month by giving notice to withdraw £400 cash I was told the following:-

Head Office had told the branch that a withdrawal did not reduce the total amount that had already been invested into the account. You are only allowed to invest a maximum of £6000, so it would be pointless withdrawing £400! (I did not understand). I will try and explain with an example, here goes:-

At the moment, I!!!8217;ve invested £5750 into my account. If I withdraw £400 cash my balance becomes £5350. BUT, I am not allowed to invest a further £650 over the next 12 months, since I have already invested £5750 previously. I!!!8217;m only allowed to invest another £250.

With this withdrawal, I know my account balance would be £5350 but this is what I was told!! So it seems as though my account would have an investment balance of £5750 with an account balance of £5350!

Sounds like a good Leeds ploy on par with the debacle of their closure of Regular Saver issue 3!
kb49