Renew/refresh accounts?

[Deleted User]

Hello.
I read on this forum  alot about people renew/refresh  account  mainly  RS.
What does it actually mean/do?

Sorry if it's a stupid question. 

jimjames

Regular saver accounts only normally run for 12 months and then change to a normal savings account. When that happens you need to re-open another RS for another 12 months and so on

Middle_of_the_Road

Could be related to accounts like the Santander Edge saver, where you can close it before the 12 months, and re-open to restart the clock. The Chase Bonus saver works in a  similar way, the initial version was till Nov. close and re-open and it extends until January.

badger09

IIRC there were several threads on ‘renewing’ Regular Savers with Lloyds, BoS & possibly others, when new accounts had higher rates than the existing. Some T&C specified that if a RS was closed early, a new one could only be opened 12 months after the original opening date. 

To take advantage of the new higher rate account, without waiting until 12 months had passed, it was possible to ‘refresh’ the existing RS into a standard savings account, then open a new RS at the higher rate. 

Bridlington1

[Deleted User] said:

Hello.
I read on this forum  alot about people renew/refresh  account  mainly  RS.
What does it actually mean/do?

Sorry if it's a stupid question. 

Close a savings account and quickly reopen the same savings account. I've done it several times, reasons can include trying to extend the term of an account, e.g. many opened the Santander Edge Saver at 7% last year but decided to refresh it in order to push the maturity date on a few months in case it goes NLA soon. 

I've also refreshed several accounts in April for tax purposes, closing them just before the end of the last tax year and reopening them just after the start of this one, e.g. I closed the Skipton MBS at 5.5% in early April to get the accrued interest paid in the 2023-4 tax year, then reopened it a few days later so that the interest would be paid in the 2025-6 tax year. I did the same with several regular savers at the same time.

[Deleted User]

Bridlington1 said:

[Deleted User] said:

Hello.
I read on this forum  alot about people renew/refresh  account  mainly  RS.
What does it actually mean/do?

Sorry if it's a stupid question. 

Close a savings account and quickly reopen the same savings account. I've done it several times, reasons can include trying to extend the term of an account, e.g. many opened the Santander Edge Saver at 7% last year but decided to refresh it in order to push the maturity date on a few months in case it goes NLA soon. 

I've also refreshed several accounts in April for tax purposes, closing them just before the end of the last tax year and reopening them just after the start of this one, e.g. I closed the Skipton MBS at 5.5% in early April to get the accrued interest paid in the 2023-4 tax year, then reopened it a few days later so that the interest would be paid in the 2025-6 tax year. I did the same with several regular savers at the same time.

OK, thank you.

[Deleted User]

badger09 said:

IIRC there were several threads on ‘renewing’ Regular Savers with Lloyds, BoS & possibly others, when new accounts had higher rates than the existing. Some T&C specified that if a RS was closed early, a new one could only be opened 12 months after the original opening date. 

To take advantage of the new higher rate account, without waiting until 12 months had passed, it was possible to ‘refresh’ the existing RS into a standard savings account, then open a new RS at the higher rate. 

Thank you.