What to do when a RS matures

ctate64

Hi, complete newbie here so apologies in advance if this is a dumb question. I have now opened 3 regular savers. One is with Principality and only lasts 6 months. What do people tend to do with this one at the end of the 6 months? Is there some sort of special process for moving to a new 6 month RS with them? Is there anything I should watch out for at this stage, in case I miss out on interest, for example?

Hattie627

I hope you aren't a lurker taking the p*ss. You are opening a can of worms.

If genuine query, apologies.

janusd

https://forums.moneysavingexpert.com/discussion/6668448/what-to-do-when-a-rs-matures

Principality will contact you (usually by email and post) weeks before maturity - you will be able to either a) withdraw balance or b) open new account - including possibly renewing the RS at the new rate… previously I renewed at maturity, but with the rate being 5% currently, I have recently withdrawn at maturity.

maman

Briefly what happens for me is that the money you've saved plus the interest is paid into the attached bank account,although in the past I have been with banks that move it into a poorly paying savings account. In those cases I've just moved it out myself and closed the account.

With the two that I have, the banks concerned have offered a further linked savings account so I just start again if the interest is favourable.

Presumably you have those in addition to using your ISA allowance. 🤔

masonic

https://forums.moneysavingexpert.com/discussion/comment/81999944#Comment_81999944

LOL I imagine it's a genuine query. In any case, Principality has pretty much neutered the issue alluded to, both in process and neutering the rate on offer.

OP - I would not renew based on what is currently available if I were you. There are lots of better accounts available than the Principality 6 month RS.

In general, the process is usually one of:

• Money is spat out to your nominated account for you to do as you wish with
• You are given some maturity options to pick from
• The account converts to something unattractive that you will want to move your money out of

Yorkie1

Just double check that they don't auto renew into a new fixed rate product if you fail to notify them of alternative preferences (a couple of providers have been reported to do this)

masonic

https://forums.moneysavingexpert.com/discussion/comment/82000113#Comment_82000113

I would love for a regular saver provider to put the lump sum I'd built up into an equivalent product 😉

In practice, very few RS do not permit access and they almost always have contribution limits much lower than the achievable final balance.

ctate64

Thanks everyone. Interesting that the interest rate seems to have dropped. I opened mine a month or two ago and it still says the interest rate is 7.36%. Anyway I won’t bother renewing if in July if that’s changed now. I don’t understand what Hattie627 means by opening a can of worms. Someone will need to explain that one to me.

poolboy

The principality rollover 5% isn't bad, it's just not as good as the 7% was. My cutoff is the best easy access, so chase at 4.5.

A few of us have gone for tembo at 4.75% at 20k.

Welcome btw, I m a serial switcher too.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82000312#Comment_82000312

Best easy access is surely 5%, isn't it?

aroominyork

I thought RS might have been Ratesetter. I got quite nostalgic for a moment.