We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Can you close a fixed bond account?
Options
steviedkelly
Posts: 13 Forumite
My sister opend a fixed bond account and now wants to close the account because she now needs the money in it but the building society won't let her have it,does anybody know a way around it?
Thanx
Thanx
0
Comments
-
Depends a lot on the T&C of the bond, I'm assuming this is a "fixed term savings account" often referred to as a "bond" Some allow early closure with the penalty if a large amount of interest, but there are fixed term accounts which stipulate "No early withdrawal" I believe with a product such as this she has no grounds.Hope for the best.....Plan for the worst!
"Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown0 -
Which building soceity is it with? Which bond did she open?0
-
First, check the full T+Cs of the account with the building society, as tradetime says, often they allow early closure, but with the penalty of x months loss of interest (never any loss of the capital).
If it is a urgent situation, yet the T+Cs disallow any early closure (regardless of penalty), I suggest you have a meeting with someone senior in the branch, explain your dilemma, and be prepared to lose all interest gained as a bargaining point.
You should never lock money away that you might need.0 -
First, check the full T+Cs of the account with the building society, as tradetime says, often they allow early closure, but with the penalty of x months loss of interest (never any loss of the capital).
Unless the interest earned to date of closure is not enough to cover the interest penalty.0 -
Speculator wrote: »Unless the interest earned to date of closure is not enough to cover the interest penalty.
Interesting point, unless the T+Cs make it clearer I suppose.
Do you think they would actually skim off some of the original capital to cover say for example: a penalty of 90 days interest if you closed in the first week of opening?0 -
Interesting point, unless the T+Cs make it clearer I suppose.
Do you think they would actually skim off some of the original capital to cover say for example: a penalty of 90 days interest if you closed in the first week of opening?
Is the Pope Catholic!!!
http://www.thechelsea.co.uk/savings/invest_90day_intro.html
Just one example I found..†† If you make a withdrawal without notice and interest accrued as on date of withdrawal in your account is insufficient to meet the penalty, then this will be deducted from the account balance. This means that you would not get back the original moneys deposited. Please bear this in mind when requesting or making a withdrawal without prior notice.
Edit: Also often the wording is something like 'penalty equivalent to 90 days’ interest'0 -
Depending on how much money she needs access to, could she not apply for the Capital One 15 months @ 0% credit card and hope for a high enough credit limit for her short-term needs, paying off the card with the proceeds of cashing in her bond when it matures (assuming the maturity date is within the next 15 months)?
http://www.capitalone.co.uk/creditcards/capital-one-platinum-card.jsf
Just a thought...
RMFor anyone wishing to contact me privately to ask me a question, can I ask that you email me directly as my PM box is often full.0 -
-
Speculator wrote: »Definitely yes.
Guess it's fair enough, you agree in general to put it away for the fixed term. :beer:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards