Skipton Member Bonus Saver

Growingold

Has anyone closed their existing account and reopened the Bonus Saver to extend the bonus date on the account?  Thanks

simonsmithsays

The Regular Saver thread has a few very recent examples of people successfully doing this

Frogletina

simonsmithsays said:

The Regular Saver thread has a few very recent examples of people successfully doing this

@simonsmithsays

I've noticed people saying they have closed and re-opened the Skipton regular saver account on that thread, but I haven't seen any reference to the Skipton member bonus a/c.  

Kim_13

I renewed a Regular Saver, depositing the proceeds into the Member Bonus Saver, but haven't renewed the Bonus Saver itself. Unless it was done in 23/24 to shift interest into that tax year, it would seem to be taking the Michael a bit. Skipton specifically advertise (iirc) that access to the funds is available via early closure, which is what I needed as I wished to secure a second ISA that I wasn't able to do without using the money that would be paying off my Credit Card come May 1st. If Skipton were to send a letter (and they are known for not liking what looks like misuse of their debit card facility) then there are currently no such legitimate responses that can be given to explain the renewing of an Easy Access account.

As it's variable, or at least a proportion of it is, then I expect that an additional 3 months of bonus wouldn't be a must have facility. Easy Access accounts usually have to be switched more than once a year if one wishes to retain the best rate.

friolento

Kim_13 said:

I renewed a Regular Saver, depositing the proceeds into the Member Bonus Saver, but haven't renewed the Bonus Saver itself. Unless it was done in 23/24 to shift interest into that tax year, it would seem to be taking the Michael a bit.

I can't quite follow your rationale there - why is it ok to shift interest from 24/25 into 23/24, but not shifting interest from 24/25 into 25/26?

Olive_Spider

friolento said:

I can't quite follow your rationale there - why is it ok to shift interest from 24/25 into 23/24, but not shifting interest from 24/25 into 25/26?

I think people are talking at cross purposes here. There are two reasons one might close and reopen a member bonus saver:

1. As the interest is paid yearly, to ensure that the interest is paid in a tax year when the holder has part of their PSA free.
2. To get the bonus for a longer period.

What I think Kim is saying is that reason 1 is legit, but reason 2 is dubious because you are attempting to claim what is essentially a one off interest rate increase twice.

I'm going to go an check their terms, and I'll see if there's anything that actually prevents this.

Frogletina

Olive_Spider said:

friolento said:

I can't quite follow your rationale there - why is it ok to shift interest from 24/25 into 23/24, but not shifting interest from 24/25 into 25/26?

I think people are talking at cross purposes here. There are two reasons one might close and reopen a member bonus saver:

1. As the interest is paid yearly, to ensure that the interest is paid in a tax year when the holder has part of their PSA free.
2. To get the bonus for a longer period.

What I think Kim is saying is that reason 1 is legit, but reason 2 is dubious because you are attempting to claim what is essentially a one off interest rate increase twice.

I'm going to go an check their terms, and I'll see if there's anything that actually prevents this.

I understand that closing the account in either tax year gets the interest paid in the year which people would prefer, but to then open the bonus saver again will automatically give you the bonus for a longer period. I don't see how you could prove the reason why you were doing it to Skipton. 

In my case I have had the account open for 10 months, but it would be beneficial to close it and re-open it now as I am certainly going to be over my PSA this year.  

Kim_13

friolento said:

Kim_13 said:

I renewed a Regular Saver, depositing the proceeds into the Member Bonus Saver, but haven't renewed the Bonus Saver itself. Unless it was done in 23/24 to shift interest into that tax year, it would seem to be taking the Michael a bit.

I can't quite follow your rationale there - why is it ok to shift interest from 24/25 into 23/24, but not shifting interest from 24/25 into 25/26?

Nothing - but as the bonus was for 12 months, renewing it now wouldn't change the tax year that the interest was paid in (the account launched in January 2024, with interest due on anniversary of opening.)

If someone was opening it today, then they could perfectly legitimately as I see it close it in early April 2025 to have it fall into 24/25, or let it run until the scheduled interest payment date which would be in 25/26.

Wheres_My_Cashback

From what I've read a few people are closing the account early hedging their bets that the rate will have reduced prior to maturity. The idea being close now and immediately re-open (which is possible) securing the current rate (7.5%) for another 12 months.

The earliest maturity is 01 June and there is an MPC meeting on 09 May when the rate could be reduced if the base rate drops. If it is cut then you could miss out on the 7.5% for the extended 12 month period, but if it's not cut I suspect will still be available at 7.5% after 01 June maturity

surreysaver

Think some people are confusing the Member Bonus Saver with the Member Regular Saver.
The MBS pays 5.5%; the MRS accounts maturing on 1st June 7.5%, with later ones 7% (which is still available). The MRS allows you to close it early. Don't know about the MBS

bristolleedsfan

Growingold said:

Has anyone closed their existing account and reopened the Bonus Saver to extend the bonus date on the account?  Thanks

I did not fund mine, Skipton closed it after 30 days, I opened another which has not been funded, hoping to repeat after another 30 days.