Yorkshire BS - increase rates by 0.3%

skoolmaster

ROLLOVER BOND, TREASURE BOND and FIXED RATE ANNIVERSARY ISA rate announced for June.
ROLLOVER BOND: 6.30% on maturity (6.13% monthly). The bond will mature on 30.6.09.
TREASURE BOND: 6.30% on maturity. The bond will mature on 30.6.09.
FIXED RATE ANNIVERSARY ISA: 6.30% on maturity (6.13% monthly).The ISA will mature on 31.5.09. All other terms and conditions on all accounts remain unchanged.
30 May 2008
Analysis The increase of 0.30% on the new issue is good news for savers. At 6.30% the Treasure Bond remains the top paying fixed children's bond on the market and the ISA sits just below the top fixed ISA currently paying 6.50%. However, the bond still falls some way short of the top 1 year rate at 7.10% and may struggle to compete in what continues to be a very competitive market. An attractive feature of the bonds is the ability to have penalty free withdrawals, and further additions for one month after maturity if rolling bond over to a new issue.

Milarky

Excellent news with the ISA. Remember that you can transfer in to an YBS ISA. Rate is fixed for '30 days' from application - and they quick about it IME.

mary

My NR ISA is maturing on June 15th with the option of going into a 1 year fix for 6%. Am interested in the better rate of 6.3% as I have some £18.3K in there. Can't find anything on the YBS website stating when they start paying interest when you transfer into them? Does anyone know?

Milarky

mary wrote: »

My NR ISA is maturing on June 15th with the option of going into a 1 year fix for 6%. Am interested in the better rate of 6.3% as I have some £18.3K in there. Can't find anything on the YBS website stating when they start paying interest when you transfer into them? Does anyone know?

From memory, they pay interest from the date of receipt of transfer cheque - two days sooner than they must. Not quite as good as Halifax/Nationwide offer to pay from the day after it leaves the other provider in all cases. Sometimes that cheque takes just a day of course, but there is a small risk with the post. It's suggested that you sound out NR on their transfer out practices. Remember that you can stipulate a day when your old account gets closed (such as Monday, Tuesday only) to avoid crossing the weekend. Also with this account it's no quite as good if you enter later in the month; the fixed rate period will end on 1 June next year for all account opened this month. It rolls over to the prevailing fixed rate being offered on that date - with a 30 day window for transfers-in, -out, withdrawals or new subscription....

mary

So are you implying that if NR are a bit slow in doing the transfer process, I might end up with it physically missing the 2 week time slot i.e. from 15th June until 30th June and then it will be a different rate from July 1st onwards, which could be higher or lower than 6.3%?

Milarky

mary wrote: »

So are you implying that if NR are a bit slow in doing the transfer process, I might end up with it physically missing the 2 week time slot i.e. from 15th June until 30th June and then it will be a different rate from July 1st onwards, which could be higher or lower than 6.3%?

No way of knowing that without swapping notes with former NR ISA customers about their experiences I'm afraid - I'm not one so can't oblige. I would guess that NR may actually be quicker than others - precisely because they aren't attracting new customers since their takeover. However, as I think I said, YBS holds the rate open for 30 days - whatever stage in the month you first apply - so NR just has to be quicker than 30 days.

There is nothing to stop you splitting the amount into two tranches (assuming NR make partial transfers - as most banks do) You could 'target' this month's YBS rate with half - and next month's rate with the remainder. Just a thought. The rate might be a bit higher (or lower) but you'd then end up being offered two months rates a year from now too..