Skipton Member Bonus Saver

Kim_13

Wheres_My_Cashback said:

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

7.0%. Rumours tend to start a few weeks before a meeting and if they expect a cut, the rate may go prior to 9 May. I was also thinking back to a few years ago when Nationwide seemed to time the pulling of the account such that it stopped the early adopters getting in for a second year, with no noticeable movement in rates more generally. Issue 1 was quite a while ago now I believe, so Skipton don’t always have an RS product available. There could be another gap between Issue 3 and 4.

As surreysaver says, there is a difference between the Member Regular Saver and the Member Bonus Saver. For me, if you have a RS Issue 2, close it and open an RS Issue 3, you are also not opening the exact same product as you closed, which you would be if you went for a new Member Bonus Saver.

friolento

In other words, it’s nothing to do with shifting interest from one tax year into another? Are you now saying that it is ok to re-open an account if the interest rate going forward is lower / if the issue number changes, but it is not ok to re-open an account if the interest rate / the issue number stays the same? I can’t find anything in the T&Cs which permits/ forbids either. What am I missing?

Kim_13

Either would be legitimate, but opening exactly the same account again feels a bit more risky to me. Since there have been cases of services being withdrawn from customers for seeking to obtain every advantage that they can from the banks, we have to decide the level of risk we are comfortable with and act accordingly.

mattojgb

If I close my MRS now it contributes 9 months interest of a lower total in the 24/25 tax year, rather than 12 months worth if I let it run to maturity. Renewing now to defer that extra interest into the 25/26 tax year seems reasonable and legitimate.

janusd

surreysaver said:

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

also worth adding that the Bonus Saver rate of 5.50% is, unlike the two regular savers, a variable rate rather than a fixed rate.

ColdIron

Variable (3.80%) but with a small fixed bonus (1.70%)

surreysaver

mattojgb said:

If I close my MRS now it contributes 9 months interest of a lower total in the 24/25 tax year, rather than 12 months worth if I let it run to maturity. Renewing now to defer that extra interest into the 25/26 tax year seems reasonable and legitimate.

Indeed. I will definitely exceed my PSA allowance this year, so 7.5% is equivalent to 6%.
Whereas next year I expect there to be fewer accounts paying such high interest, with the fact I will be managing taxable interest better, means 7% will be 7%

I also want to try and spread maturity of regular savers out this year - I've got loads maturing in the autumn with not many before and after. Before covid I had one or two maturing each month, which provided the cashflow to fund the following month's regular savers and I'd like to try and get back into that situation again 

janusd

ColdIron said:

Variable (3.80%) but with a small fixed bonus (1.70%)

true - but if they drop the rate by 0.25% after the next BoE meeting, the 1.70% fixed part will be irrelevant... it will still be 0.25% lower than it is now.