Skipton BS - Member Regular Saver

Kim_13 · 5 February at 8:39PM

https://forums.moneysavingexpert.com/discussion/comment/81872196#Comment_81872196

In which case she might like to open the Regular Saver (open to all) now plus a Bonus Saver with £1, then close the Regular Saver when eligible for a Member Regular Saver and open that.

lr1277 · 5 February at 8:46PM

https://forums.moneysavingexpert.com/discussion/comment/81872210#Comment_81872210

She already has the bonus saver open. As I mentioned above she has the Nationwide RS saver. I have no idea why she opened it. We happened to be on the Nationwide website and the 6.5% rate caught her eye so we opened the account. In terms of what to do with the proceeds of that account, I suggested to her she could use it for her tax payment next January.

If she warms to that idea, I will suggest another RS to build up money for her July 2027 tax payment. But don't need to open that till June or July this year. But your idea is sound and worth discussing with my mum which I will do.

This might all be moot as she might be liable for making tax digital so I am in the process of finding out if she needs to do that.

Kim_13 · 5 February at 8:59PM

The Nationwide Flex RS is superior to the Skipton Regular Saver (6.5% vs 5.25%, both £200 per month) so I would be making full use of the former first. An advantage of the Skipton Regular Savers is that they allow the carry forward of unused allowance, so she could do that with any proceeds left from the Nationwide RS once the tax is paid and start a new Nationwide one if still available at that time.

Regular Savers generally offer the best returns available on cash savings. As they mature, I scoop them into ISAs/Premium Bonds (from where they are an emergency fund) if they are not needed for a particular purpose.

pochisoldi · 5 February at 9:01PM

https://forums.moneysavingexpert.com/discussion/6654033/skipton-bs-member-regular-saver

I opened an easy access saver account and stuck £1 in it in December 2023, anticipating a new member's only regular saver issue in Jan 2024 - it happened, I have no record of the eligibility cut off date. The following year the cutoff was 20/01/2025. The moral of this story is to stick a pound in an easy access account and forget about it until November…

gpman · 5 February at 10:28PM

@lr1277

"If I am advising mum I am looking for good customer service and ease of retrieving money. That also means no app based accounts."

In which case, you may wish to totally re-think.

Neither the Skipton nor the Principality allow in term withdrawals, but early closure is possible.

Note also with Principality you need a OTP via SMS to login to their online web portal.

In my experience, it is rather hit or miss if you receive the SMS within the 5 minutes it is valid for.

lr1277 · 5 February at 10:58PM

https://forums.moneysavingexpert.com/discussion/comment/81872391#Comment_81872391

Thanks @gpman

Mum has sufficient easy access funds. In fact as I said upthread, I have no idea why she opened the Nationwide RS. It was me thinking of a use for the funds that suggested using it to pay her tax bill as the account matures next January. Or she could stick the money in some kind of easy access account. That is upto her. Yes her 26/27 cash ISA will be fully funded by then but it is flexible just incase withdrawls are required.

Principality is not a consideration at this moment. As I said I am not looking for every last penny of interest. Whilst we haven't tried withdrawing money from Skipton yet, there are sufficient funds elsewhere that she can wait a few days before the Skipton money in her current account.

Thanks for the advice on Principality.

masonic · 7 February at 9:32PM

"Anyone opening a regular saver account should bear in mind that the overall interest rate is about half the advertised rate (the mathematics of regularly depositing money versus a one-off lump sum)."

The advertised rate is the overall rate. The amount received is related to the average balance rather than the final balance, which trips some people up, even though the same is true of easy access accounts. Money not in the account doesn't earn interest, but it is free to earn interest elsewhere.

Your ladder scenario is the ideal as you can have a lump sum more or less continuously earning at regular saver rates.