Regular Savers with Lloyds and Halifax - worth upgrading interest?

kaMelo

where_are_we said:

It`s "crunch time" (optimum time to change is at the end of the month because you can get in 2 x £250 monthly deposits into the new RS for 1/4/23) whether to "stick" with my Halifax RS @4.5% or renew to a new RS@5.5%. I have decided to renew because (1) 5.5% is fixed and maybe fixed rates are near their peak - there is a question mark over if a Halifax RS @5.5% fixed will still be available in 6 months time when your old RS would mature (2) My "sort of" easy access accounts are rising - YBS loyalty 6 access e saver (NLA) is going up to 3.75% soon and YBS Loyalty 6 access e isa saver (which is flexible) is also going up to 4.25% so the "premium" that a 4.5% RS has is reducing. (3) I do not need to use up one of my withdrawals from my 6 access YBS accounts this month to fund my total RS SO`s at the beginning of next month if I withdraw £1517.63 including interest from old Halifax RS (it helps with cash flow).

How did I not notice this account?
Given the uplift in rates over the last twelve months paying tax on interest has become a consideration again.
Given that YBS ISA is flexible and paying 4.25% from 05/04/23 a non ISA account would have to be paying 5.31% for BR tax payers or 7.08 for HR tax payers. 

Essentially if you're going to pay tax on savings interest next year you would be better off to "renew" all LBG regular savers and dump the proceeds of those accounts into the YBS ISA.
if you will exceed the PSA from non regular savings accounts then as a basic rate tax payer it is worth starting again at the higher rates. As a higher rate tax payer however the YBS ISA will pay more than every regular saver currently available. 

where_are_we

If you do decide to renew Halifax RS remember to cancel the remaining SO`s on the old RS@4.5%!

badger09

kaMelo said:

where_are_we said:

It`s "crunch time" (optimum time to change is at the end of the month because you can get in 2 x £250 monthly deposits into the new RS for 1/4/23) whether to "stick" with my Halifax RS @4.5% or renew to a new RS@5.5%. I have decided to renew because (1) 5.5% is fixed and maybe fixed rates are near their peak - there is a question mark over if a Halifax RS @5.5% fixed will still be available in 6 months time when your old RS would mature (2) My "sort of" easy access accounts are rising - YBS loyalty 6 access e saver (NLA) is going up to 3.75% soon and YBS Loyalty 6 access e isa saver (which is flexible) is also going up to 4.25% so the "premium" that a 4.5% RS has is reducing. (3) I do not need to use up one of my withdrawals from my 6 access YBS accounts this month to fund my total RS SO`s at the beginning of next month if I withdraw £1517.63 including interest from old Halifax RS (it helps with cash flow).

How did I not notice this account?
Given the uplift in rates over the last twelve months paying tax on interest has become a consideration again.
Given that YBS ISA is flexible and paying 4.25% from 05/04/23 a non ISA account would have to be paying 5.31% for BR tax payers or 7.08 for HR tax payers. 

Essentially if you're going to pay tax on savings interest next year you would be better off to "renew" all LBG regular savers and dump the proceeds of those accounts into the YBS ISA.
if you will exceed the PSA from non regular savings accounts then as a basic rate tax payer it is worth starting again at the higher rates. As a higher rate tax payer however the YBS ISA will pay more than every regular saver currently available. 

This is my plan. I’m not liable to pay tax on savings interest this year, but will be 2003/04. I haven’t yet used all this year’s ISA allowance so it makes sense to ‘renew’ RS over the next few days, top up ISA, then open new RS after 6/4.
No idea what interest rates will be 2004/05. Crystal ball anyone?

howryoo

badger09 said:

kaMelo said:

where_are_we said:

It`s "crunch time" (optimum time to change is at the end of the month because you can get in 2 x £250 monthly deposits into the new RS for 1/4/23) whether to "stick" with my Halifax RS @4.5% or renew to a new RS@5.5%. I have decided to renew because (1) 5.5% is fixed and maybe fixed rates are near their peak - there is a question mark over if a Halifax RS @5.5% fixed will still be available in 6 months time when your old RS would mature (2) My "sort of" easy access accounts are rising - YBS loyalty 6 access e saver (NLA) is going up to 3.75% soon and YBS Loyalty 6 access e isa saver (which is flexible) is also going up to 4.25% so the "premium" that a 4.5% RS has is reducing. (3) I do not need to use up one of my withdrawals from my 6 access YBS accounts this month to fund my total RS SO`s at the beginning of next month if I withdraw £1517.63 including interest from old Halifax RS (it helps with cash flow).

How did I not notice this account?
Given the uplift in rates over the last twelve months paying tax on interest has become a consideration again.
Given that YBS ISA is flexible and paying 4.25% from 05/04/23 a non ISA account would have to be paying 5.31% for BR tax payers or 7.08 for HR tax payers. 

Essentially if you're going to pay tax on savings interest next year you would be better off to "renew" all LBG regular savers and dump the proceeds of those accounts into the YBS ISA.
if you will exceed the PSA from non regular savings accounts then as a basic rate tax payer it is worth starting again at the higher rates. As a higher rate tax payer however the YBS ISA will pay more than every regular saver currently available. 

This is my plan. I’m not liable to pay tax on savings interest this year, but will be 2003/04. I haven’t yet used all this year’s ISA allowance so it makes sense to ‘renew’ RS over the next few days, top up ISA, then open new RS after 6/4.
No idea what interest rates will be 2004/05. Crystal ball anyone?

Took me back 20 years!

howryoo

I see Halifax's RS mentioned a few times, but not Lloyds.

Is it not possible to renew Lloyds RS accounts - have they fixed it?

I last 'renewed' my Halifax one back in October, so I'm familiar with that.  Would doing it again have any implications?

Someone's getting all their LBG accounts closed in May, but I suspect that's not as a result of chasing these RS rates?

AmityNeon

howryoo said:

I see Halifax's RS mentioned a few times, but not Lloyds.

Is it not possible to renew Lloyds RS accounts - have they fixed it?

I last 'renewed' my Halifax one back in October, so I'm familiar with that.  Would doing it again have any implications?

Someone's getting all their LBG accounts closed in May, but I suspect that's not as a result of chasing these RS rates?

You can renew all four. This does however mean opening a total of 9 savings accounts in rapid succession: 4x standard savers (from renewing), 4x new RS, plus 1x everyday saver (opened alongside Halifax RS). This may or may not trigger a manual review of some sort, and even if it does invite scrutiny, nothing may come of it, especially if you have no other questionable history.

aaj123

kaMelo said:

where_are_we said:

It`s "crunch time" (optimum time to change is at the end of the month because you can get in 2 x £250 monthly deposits into the new RS for 1/4/23) whether to "stick" with my Halifax RS @4.5% or renew to a new RS@5.5%. I have decided to renew because (1) 5.5% is fixed and maybe fixed rates are near their peak - there is a question mark over if a Halifax RS @5.5% fixed will still be available in 6 months time when your old RS would mature (2) My "sort of" easy access accounts are rising - YBS loyalty 6 access e saver (NLA) is going up to 3.75% soon and YBS Loyalty 6 access e isa saver (which is flexible) is also going up to 4.25% so the "premium" that a 4.5% RS has is reducing. (3) I do not need to use up one of my withdrawals from my 6 access YBS accounts this month to fund my total RS SO`s at the beginning of next month if I withdraw £1517.63 including interest from old Halifax RS (it helps with cash flow).

How did I not notice this account?
Given the uplift in rates over the last twelve months paying tax on interest has become a consideration again.
Given that YBS ISA is flexible and paying 4.25% from 05/04/23 a non ISA account would have to be paying 5.31% for BR tax payers or 7.08 for HR tax payers. 

Essentially if you're going to pay tax on savings interest next year you would be better off to "renew" all LBG regular savers and dump the proceeds of those accounts into the YBS ISA.
if you will exceed the PSA from non regular savings accounts then as a basic rate tax payer it is worth starting again at the higher rates. As a higher rate tax payer however the YBS ISA will pay more than every regular saver currently available. 

Yep flexible ISAs are a really good tool now and if you are looking for an account with no withdrawal restrictions, consider this one

https://www.skipton.co.uk/savings/isas/cash-isa-tracker

Band7

kaMelo said:

where_are_we said:

It`s "crunch time" (optimum time to change is at the end of the month because you can get in 2 x £250 monthly deposits into the new RS for 1/4/23) whether to "stick" with my Halifax RS @4.5% or renew to a new RS@5.5%. I have decided to renew because (1) 5.5% is fixed and maybe fixed rates are near their peak - there is a question mark over if a Halifax RS @5.5% fixed will still be available in 6 months time when your old RS would mature (2) My "sort of" easy access accounts are rising - YBS loyalty 6 access e saver (NLA) is going up to 3.75% soon and YBS Loyalty 6 access e isa saver (which is flexible) is also going up to 4.25% so the "premium" that a 4.5% RS has is reducing. (3) I do not need to use up one of my withdrawals from my 6 access YBS accounts this month to fund my total RS SO`s at the beginning of next month if I withdraw £1517.63 including interest from old Halifax RS (it helps with cash flow).

How did I not notice this account?
Given the uplift in rates over the last twelve months paying tax on interest has become a consideration again.
Given that YBS ISA is flexible and paying 4.25% from 05/04/23 a non ISA account would have to be paying 5.31% for BR tax payers or 7.08 for HR tax payers. 

Essentially if you're going to pay tax on savings interest next year you would be better off to "renew" all LBG regular savers and dump the proceeds of those accounts into the YBS ISA.
if you will exceed the PSA from non regular savings accounts then as a basic rate tax payer it is worth starting again at the higher rates. As a higher rate tax payer however the YBS ISA will pay more than every regular saver currently available. 

It goes without saying, surely, that people make use of their ISA allowance if they bust their PSA, whether from Regular Savers or from other savings accounts? Just like they would use additional pension contributions, if at all possible, to reduce their tax liability. They also wouldn’t normally wait until the end of a tax year to make such tax saving provisions, but would take action as close as possible to April 6. What type(s) of ISA choose would depend on their circumstances.

badger09

Band7 said:

kaMelo said:

where_are_we said:

It`s "crunch time" (optimum time to change is at the end of the month because you can get in 2 x £250 monthly deposits into the new RS for 1/4/23) whether to "stick" with my Halifax RS @4.5% or renew to a new RS@5.5%. I have decided to renew because (1) 5.5% is fixed and maybe fixed rates are near their peak - there is a question mark over if a Halifax RS @5.5% fixed will still be available in 6 months time when your old RS would mature (2) My "sort of" easy access accounts are rising - YBS loyalty 6 access e saver (NLA) is going up to 3.75% soon and YBS Loyalty 6 access e isa saver (which is flexible) is also going up to 4.25% so the "premium" that a 4.5% RS has is reducing. (3) I do not need to use up one of my withdrawals from my 6 access YBS accounts this month to fund my total RS SO`s at the beginning of next month if I withdraw £1517.63 including interest from old Halifax RS (it helps with cash flow).

How did I not notice this account?
Given the uplift in rates over the last twelve months paying tax on interest has become a consideration again.
Given that YBS ISA is flexible and paying 4.25% from 05/04/23 a non ISA account would have to be paying 5.31% for BR tax payers or 7.08 for HR tax payers. 

Essentially if you're going to pay tax on savings interest next year you would be better off to "renew" all LBG regular savers and dump the proceeds of those accounts into the YBS ISA.
if you will exceed the PSA from non regular savings accounts then as a basic rate tax payer it is worth starting again at the higher rates. As a higher rate tax payer however the YBS ISA will pay more than every regular saver currently available. 

It goes without saying, surely, that people make use of their ISA allowance if they bust their PSA, whether from Regular Savers or from other savings accounts? Just like they would use additional pension contributions, if at all possible, to reduce their tax liability. They also wouldn’t normally wait until the end of a tax year to make such tax saving provisions, but would take action as close as possible to April 6. What type(s) of ISA choose would depend on their circumstances.

In an ideal world, yes. 

But sometimes one’s life doesn’t run ‘normally’ and such considerations become very low priority. 

kaMelo

Band7 said:

kaMelo said:

where_are_we said:

It`s "crunch time" (optimum time to change is at the end of the month because you can get in 2 x £250 monthly deposits into the new RS for 1/4/23) whether to "stick" with my Halifax RS @4.5% or renew to a new RS@5.5%. I have decided to renew because (1) 5.5% is fixed and maybe fixed rates are near their peak - there is a question mark over if a Halifax RS @5.5% fixed will still be available in 6 months time when your old RS would mature (2) My "sort of" easy access accounts are rising - YBS loyalty 6 access e saver (NLA) is going up to 3.75% soon and YBS Loyalty 6 access e isa saver (which is flexible) is also going up to 4.25% so the "premium" that a 4.5% RS has is reducing. (3) I do not need to use up one of my withdrawals from my 6 access YBS accounts this month to fund my total RS SO`s at the beginning of next month if I withdraw £1517.63 including interest from old Halifax RS (it helps with cash flow).

How did I not notice this account?
Given the uplift in rates over the last twelve months paying tax on interest has become a consideration again.
Given that YBS ISA is flexible and paying 4.25% from 05/04/23 a non ISA account would have to be paying 5.31% for BR tax payers or 7.08 for HR tax payers. 

Essentially if you're going to pay tax on savings interest next year you would be better off to "renew" all LBG regular savers and dump the proceeds of those accounts into the YBS ISA.
if you will exceed the PSA from non regular savings accounts then as a basic rate tax payer it is worth starting again at the higher rates. As a higher rate tax payer however the YBS ISA will pay more than every regular saver currently available. 

It goes without saying, surely, that people make use of their ISA allowance if they bust their PSA, whether from Regular Savers or from other savings accounts? Just like they would use additional pension contributions, if at all possible, to reduce their tax liability. They also wouldn’t normally wait until the end of a tax year to make such tax saving provisions, but would take action as close as possible to April 6. What type(s) of ISA choose would depend on their circumstances.

Even though it wasn't very clear I was of course referring to next year, this year being done and dusted some time ago.

Like all things it's a blend of solutions, pensions being the most favourable but that has to be balanced with some available funds not subjected to market drops like last year to avoid having to sell at the "wrong" time.