Co-op and Coventry and YBS regular savers closure and reopen?

gele

Hi all.
I opened these 3 regular savers in March with the idea that on maturity they could go into next years ISA. However I am slightly concerned that if I fund them to the max, it will push me into paying tax on savings for this year. I'm wondering if any of these [Cov and YBS are the loyalty ones paying 6.75% and 7%] can be closed without any penalty and reopened immediately to take the interest into the next tax year. Is this possible without penalty for any of them and has anyone done it successfully? Thanks

allegro120

gele said:

Hi all.
I opened these 3 regular savers in March with the idea that on maturity they could go into next years ISA. However I am slightly concerned that if I fund them to the max, it will push me into paying tax on savings for this year. I'm wondering if any of these [Cov and YBS are the loyalty ones paying 6.75% and 7%] can be closed without any penalty and reopened immediately to take the interest into the next tax year. Is this possible without penalty for any of them and has anyone done it successfully? Thanks

Coventry - in my understanding if you close the account there will be a charge equal to 30 calendar days' interest.
No charge for closing YBS or Co-op.

Kim_13

While there is no charge to close YBS Loyalty at 7%, it is NLA so you would only be able to reopen one of the currently available (worse) accounts. There is a withdrawal day, so you could use that to reduce the balance and deposit the proceeds in another account that will be taxed in 25/26 instead. There's only one withdrawal day for the term though, so you'll need to think carefully about when to use it (would you be better off if you funded it for a bit longer first?)

friolento

AFAIK, there is no minimum monthly deposit required for the COOP, Coventry and YBS Regular Savers. This means you can control how much interest you get from these accounts.

gele

Thanks all. Yes I knew about the monthly deposits so controlling interest is an option. I would have liked to still fund them but get interest next year that's the thing. Anyway that's my fault I should have held off opening til after April 6 in hindsight. As for YBS it makes sense to keep and will withdraw in next couple of months before funding again at a low amount. Coventry will have to remain open and i will fund again at a low amount.
The co-op one is interesting as it seems I could just close that one now. Does anyone see an issue arising with me closing it now and reopening in a week so that the new one matures in 24/25 tax year?

allegro120

gele said:

The co-op one is interesting as it seems I could just close that one now. Does anyone see an issue arising with me closing it now and reopening in a week so that the new one matures in 24/25 tax year?

You can close and reopen, I can't see why not.  However, many on here reported that they've had trouble opening Co-op RS online. It looks like there is a bit of chaos in Co-op system. I've opened mine without any problems, but it might be worth considering the probability of bad luck.

gele

Yes I opened mine without a problem too online. I might give it a go as I probably wont fund it otherwise which would be a shame as I will have the funds to do so this year and get the benefit early next year,
Thanks