Leeds Building Society Regular Saver (Issue 4)
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Making the recommended £600 withdrawal means that the interest loses its identity as interest, does it not? It could be argued that the £600 is all invested money OR part invested money over the credited interest. I think to be on the safe side and if indeed the account continues, I may withdraw the interest and then the £600.
The interest for £6000 of 2.55% over a year will be £153.
Withdrawing the interest earned of £153 will mean lost of about 2.55% of £153 = £3.90.
Not much considering the risk of the ac closure and a lot of hassles to reinstate it. The applied algorithm might not exclude the interest earned into the equation.
Has anyone got confirmation from Leeds BS that the interest earned does not count toward the limit of £6000 ??0 -
The interest for £6000 of 2.55% over a year will be £153.
Withdrawing the interest earned of £153 will mean lost of about 2.55% of £153 = £3.90.
Not much considering the risk of the ac closure and a lot of hassles to reinstate it. The applied algorithm might not exclude the interest earned into the equation.
Has anyone got confirmation from Leeds BS that the interest earned does not count toward the limit of £6000 ??
It's on all the paperwork and in the T+C's. Interest does NOT count towards the 6k limit. Otherwise you wouldn't be able to deposit £250 every month would you, as you wouldn't know what the last payment would be.0 -
I'm going to a branch next week so I'm going to ask about what happens when you reach 6k.0
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2.55% isn't high enough.. there are 5% accounts available on the market, and if anyone is going to make the commitment to make a regular payment for a whole year they might as well open a current account to access a better rate - assuming they can.0
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2.55% isn't high enough.. there are 5% accounts available on the market, and if anyone is going to make the commitment to make a regular payment for a whole year they might as well open a current account to access a better rate - assuming they can.
It is, when you've already got the 5% 4% 3% 2.75% accounts! You may not believe this but people are still opening Virgin RS accounts at 2.25%!0 -
2.55% isn't high enough.. there are 5% accounts available on the market, and if anyone is going to make the commitment to make a regular payment for a whole year they might as well open a current account to access a better rate - assuming they can.
If you have those current accounts and can meet all the requirements to have several of them.....0 -
2.55% isn't high enough.. there are 5% accounts available on the market, and if anyone is going to make the commitment to make a regular payment for a whole year they might as well open a current account to access a better rate - assuming they can.
Well in my case I have swept all what I could get.
The RS paying 2% + is mainly intended to accelarate the process of draining money from BOS and and Clloyds and back to these accounts again as a temporary container.
Probably people might think it is not a good idea to hold so much cash but for some pople this is actually not their own money because part of it is the stoozed money. In this case it is important to play safe as the bank might ask for immediate payment at any time.0 -
I asked Leeds Building Society what happens when the account reaches £6,000.
They said that it automatically converts to an Access Saver (Issue 2) account as maturity paying 0.5% (You'd get about £30 a year from that on the final balance and not withdrawing any)
Looks like best option, if you want to keep the account going, is to put in £249 as the final payment in August, and then, if you can, go to branch on 31st August (the day interest is paid) get the book updated with the interest and withdraw £600 (last day of the bonus period) and then feed £50 a month (Sept 18-Aug 19) for 12 payments (50 x 12 = 600) which will take you back to £5,999 (excluding interest). Then you maintain the high interest payment without actually losing or using money out of your current account (even put the £600 in a different account to keep it separate and not spend it?)
Of course, LBS may wise up to this after a few months, and they may decide to close the account to further deposits.0 -
I asked Leeds Building Society what happens when the account reaches £6,000.
They said that it automatically converts to an Access Saver (Issue 2) account as maturity paying 0.5% (You'd get about £30 a year from that on the final balance and not withdrawing any)
Looks like best option, if you want to keep the account going, is to put in £249 as the final payment in August, and then, if you can, go to branch on 31st August (the day interest is paid) get the book updated with the interest and withdraw £600 (last day of the bonus period) and then feed £50 a month (Sept 18-Aug 19) for 12 payments (50 x 12 = 600) which will take you back to £5,999 (excluding interest). Then you maintain the high interest payment without actually losing or using money out of your current account (even put the £600 in a different account to keep it separate and not spend it?)
Of course, LBS may wise up to this after a few months, and they may decide to close the account to further deposits.
Not got the terms to hand but from memory don’t they say that the balance can not exceed £6000 excluding interest? Hence they cannot convert the account to the Access Saver if your balance reaches exactly £6000 as they’d be breaking the terms.0 -
Not got the terms to hand but from memory don’t they say that the balance can not exceed £6000 excluding interest? Hence they cannot convert the account to the Access Saver if your balance reaches exactly £6000 as they’d be breaking the terms.
Just saying what a LBS employee told me. If anyone else can ask in branch, or DM them on Twitter, or phone a branch for clarity on Issue 4, then it would be appreciated by all of us.
Perhaps by 'exceed' they mean that's the cut off point for your own deposits excluding interest.0
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