Yorkshire BS Loyalty Regular Saver (Issue 2. July 2022) Likely duration of availability?

waddletheduck

Hi there.

I'm planning to open one of YBS's new Loyalty Regular Saver Accounts (*) but was hoping to optimise the time at which I did so. The only information I have however regarding the length of time the account will be offered for is that it will be a "limited time". I have been in touch with YBS about this and they have told me that they do not know the end date yet themselves but that anyway, they will not put out any notification of it's approaching when it has been decided on. The account will just cease to be available one day.

I understand then that anything short of my opening the account today will be taking somewhat of a gamble, but I was wondering whether any of you have experience of similar accounts YBS have offered in the past and could tell me an approximate length of time that they were made available for (or simply your own speculations on how long you think this one could be around). It could help me decide how much of a gamble I am willing, or it would be wise, to take.

Thanks.

FYI. The account first became available on the 21st July I believe.

(*) My apologies there was meant to be a real link here but I'm too new to post one apparently!
     It's easy to find though. "ybs co.uk savings product ?id=YB901552W" (YBS LRS. Issue 2)

and, P.S. Sorry if there is already a place, or a better place, that I should have posted this to. I did search and didn't find one, but please, if I missed it, point me in the right direction. Cheers.

waddletheduck

Yes it's the end of the month that I was aiming for to get it going, only the end of one in the autumn would have given me about the best I personally can hope from it, and the end of next month would still be quite a bit better for me than these next few days.

I had basically decided that there was no way it would go until October/November and so my gamble would be between now or this time next month, so it's interesting to know that their previous LRS was indeed on offer for a 4 full months. Still I don't think I'd have the nerve to wait out on this one that long so I'll have to make a decision in the next day or two as to whether I think I'll push it a month or not. (I'm expecting at the moment that I won't and I'll handle instead the extra shuffling around of cash I'll have to do to deal with the reduced flow this month and/or perhaps a minimal hit on the potential gains but we'll see.)

Anyway, thanks for your input and advice James. It's appreciated.

Daliah

I am intrigued - why would you want to delay putting as much as you can into a 5% account as soon as possible?

waddletheduck

Hi Daliah. It's because although I may be able to max it out for a month or two at the start, from savings in accounts with lesser rates, I know I will not be able to fill it each month for it's full term. I can only put aside a smaller sum each month. But I also have some funds in another account that are already earning 5%, and will cease to do so in the spring. So if I were able to delay opening this account, I could save elsewhere to pay in the full amount for an extra month at the start of the term but also, more significantly, extend the time that the money in the other account will be earning 5% by however many months I delay.

Daliah

This sounds quite complicated. I still don't understand why you would want to keep money in accounts that pay less than 5% but it's your money, your decision.

Ed-1

Daliah said:

This sounds quite complicated. I still don't understand why you would want to keep money in accounts that pay less than 5% but it's your money, your decision.

If you open towards the end of a calendar month, you get more cash earning 5% for longer as effectively you've got £1k earning 5% for a full 12 months instead of £500 for 12 months and then £1k for 11 months which would be the case if you open on 1st of the month.

waddletheduck

I don't. I'll pay out what I have in savings accounts offering lesser rates in the first months after opening the account, but after that I will only be able to pay in a fixed sum from my income. The rest is already in an account paying 5%. There is no difference (well not with respect to interest, only to access) whether or not the money that is in the 5% account I currently have stays in it or moves to this new one once both accounts are open - since this second account will mature after the first and at some point I'll move the money anyway I will gain 12 months of interest at 5% wherever it is - but since that money is already earning 5%, any months I delay opening this account are extra months that it will do so.

Daliah

Ed-1 said:

Daliah said:

This sounds quite complicated. I still don't understand why you would want to keep money in accounts that pay less than 5% but it's your money, your decision.

If you open towards the end of a calendar month, you get more cash earning 5% for longer as effectively you've got £1k earning 5% for a full 12 months instead of £500 for 12 months and then £1k for 11 months which would be the case if you open on 1st of the month.

Well yes I know that, and YBS helpfully launched the product quite close to the end of the month (on the 19th). Still no reason for delaying.

Daliah

waddletheduck said:

I don't. I'll pay out what I have in savings accounts offering lesser rates in the first months after opening the account, but after that I will only be able to pay in a fixed sum from my income. The rest is already in an account paying 5%. There is no difference (well not with respect to interest, only to access) whether or not the money that is in the 5% account I currently have stays in it or moves to this new one once both accounts are open - since this second account will mature after the first and at some point I'll move the money anyway I will gain 12 months of interest at 5% wherever it is - but since that money is already earning 5%, any months I delay opening this account are extra months that it will do so.

So you aren't actually delaying getting 5% on as much as you can afford. You are just hoping that there will be another 5% account when your existing one matures. In an environment of rising interest rates, it is quite possible that there might be such an account in a few months time. Or even an account with a lower interest rate but a much higher deposit limit that has a higher yield than a 5% Regular Saver. All you can do is cross that bridge when you come to it.