Yorkshire BS Regular Saver: IRs Going Down

Ologhai

If you have a Yorkshire Building Society Regular Saver (and you haven't been keeping an eye on the interest rate), you may be interested to know that it's been dropping of late.

The account's interest rate comprises a variable base-rate plus a fixed bonus of 3.5% that applies if, during each twelve-month period, you fulfil the terms and conditions (including, if memory serves, paying in 11 out of 12 months, and no more than one withdrawal).

While I've been aware of the account, the gross interest rates (including the bonus) have been as follows:

• From (at least) Feb 16th, 2008: 6.85%.
• From Mar 2nd, 2008: 6.6%.
• From Apr 27th, 2008: 6.35%.

At this stage, it's not looking especially attractive considering the restriction of a maximum monthly investment of £500.

BenL

I've done my year with them now and am just sorting out the closing of the account.

I should have remembered to get my passbook updated yesterday when i was near the branch to check all the interest has been paid though.

D'oh

Time to look around again and see what to do with the proceeds.

quinlanmd

Just for info, the full interest rate changes list (gross, including bonus) on this account (according to my records) is:
6.5% (opening rate)
6.75% (from 10/12/06)
7.00% (from 28/01/07)
7.10% (from 05/08/07)
6.85% (from 30/12/07)
6.60% (from 02/03/08)
6.35% (from 27/04/08)

The account lost some of its attractiveness mid-2007, and has further slipped due to rising instant access variable rates and fixed rates since the Northern Rock debacle/global credit crunch.

Thanks for the reminder that I should now be moving funds out of this account! Given that recent rate cuts have been in line with BOE rate changes, personally I will be keeping the account open with a lower balance and minimum (£10) monthly credits for possible future use.

Geoffo_M

I'm 9 months into my second year, and today decided to draw it out, leaving only £100 in there. I shall pay £10 in every month until next February, when the second year will be completed. After the interest is credited, I shall close the account. My money is better off in a fixed-term bond at the moment.

Geoff

moneylover

Thanks everybody, its a reminder to me to withdraw and then pay in minimum from now on. Can someone who has 'almost closed' their account remind me- is there a minimum you need to leave in the account and can you do the withdrawal over the web if you have the account set up this way?

Its sad, Yorkshire were so very good and the virtues of this account have been rightly extolled many times on this board.

Geoffo_M

moneylover wrote: »

Thanks everybody, its a reminder to me to withdraw and then pay in minimum from now on. Can someone who has 'almost closed' their account remind me- is there a minimum you need to leave in the account and can you do the withdrawal over the web if you have the account set up this way?

Its sad, Yorkshire were so very good and the virtues of this account have been rightly extolled many times on this board.

I don't think there is a minimum but I read on another thread that by leaving £100 in there, you keep membership rights. Not sure what they are but decided to follow their advice. I also looked at transferring online but in my case, it wasn't set up to my linked account. So, I went in to the local branch, got a cheque and walked it up the road to my bank. You're right about it being sad how YBS have gone downhill with their savings rates. When I opened my accounts, the Reg Saver, ISA and e-saver were all excellent rates. Now I've had to transfer all 3.

RayWolfe

£ 10 is the minimum.

steady__eddie

RayWolfe wrote: »

£ 10 is the minimum.

Would it not be better to leave £100 in the a/c. in order to qualify for any "loss of mutuality" benefits, however unlikely this may be ?

knights

Geoffo_M wrote: »

leaving only £100 in there. I shall pay £10 in every monthGeoff

Did mine yesterday.

margaretclare

Membership rights mean you are a member of the Society. As it's mutual, you have the right to go along to the AGM and vote.

As you're a member, why not write to the YBS and state your views, as they've been stated here?

bristolleedsfan

margaretclare wrote: »

As you're a member, why not write to the YBS and state your views, as they've been stated here?

Many of us stated our views to YBS when it failed to pass on two base rate increases in full. :rotfl:

Only message a BS understands is withdrawals. I took most my funds out during January as it was apparent what was going to happen to both base rates and YBS regular saver rates.