Yorkshire moves to deter carpetbaggers
Tuesday 17 March 1998
The move would encourage new savers not to withdraw money for at least two years - or miss a large bonus paid to long-term savers. This would deter short-term carpetbaggers from withdrawing money immediately after a windfall gain.
Yorkshire last year attempted to stop carpetbaggers disrupting its business by boosting its minimum opening balance to pounds 2,000 on share accounts - the accounts which give members a chance to vote on whether to float a society.
Smaller savers have been offered deposit accounts with no votes and no entitlement to a windfall. But from July, the Building Societies Act 1997 will bar Yorkshire from offering non-voting accounts unless customers insist on them. Unless Yorkshire drops the minimum balance, it could cut itself out of the market for small savings.
David Anderson, chief executive of the Yorkshire, said: "After July we can only offer share accounts and not the deposit accounts we have offered to smaller savers. That could mean we lose our ability to offer accounts to small savers, which is not a position we want to be in."
The scheme, which is one of several options being considered, would mean that long-term savings accounts would become the staple product of the Yorkshire.
The society, which has more than a million members, admitted the scheme would not stop members voting for conversion. But it would stop votes being distorted by temporary members who stayed only to wait for a windfall.
Other options to put off carpetbaggers include adopting a tactic used by rival building society Nationwide, where new savers have to sign away their windfall rights to charity.
Yorkshire would use the same method but would give members their windfall rights back after a set number of years.
The Yorkshire yesterday said its mortgage customers had already saved more over two years in lower rates than customers of Bristol & West received in windfall payouts. A customer with a pounds 50,000, variable rate mortgage, had saved pounds 420.92 compared with customers of the Halifax.
- 1 Autistic adults could take pure MDMA to 'reduce social anxiety'
- 2 Before you complain about your GP, this is what you need to know about actually doing the job
- 3 Father of 12 accused of raping, beating, starving and abusing his own children in US 'cult'
- 4 Britain's Got Talent 2015: Jamie Raven divides Twitter as fans expose mind-boggling magic trick
- 5 Charlie Charlie Challenge explained: not a Mexican demon being summoned — it's gravity
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Australian man punched in the face for defending Muslim women from abuse on train
A nation of inequality: How the UK is failing to feed its most vulnerable people
David Starkey 'tells Amal Clooney to shut up and stop over-promoting human rights'
EU referendum: David Cameron to deny EU migrants and under-18s the chance to vote
iJobs Money & Business
£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...
£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...
£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...