Tesco Internet Saver - Withdrawal penalty? Help?

lilmissmup

I just opened up a Tesco Internet Saver with cashbackkings and i want to use it to save up to go to New York in April.

If i start saving now and withdraw in February will i lose any of the interest rate or the 1.5% bonus? I have looked on the site and can't see anything apart from the bonus is only for deposits of £100000 or less.

Help most appreciated or if anyone can recommend a better account i would be grateful.

I have an alliance and leiceser e-saver but i withdrew from that a few months ago so i know the APR has gone down on that already.

YorkshireBoy

lilmissmup wrote: »

If i start saving now and withdraw in February will i lose any of the interest rate or the 1.5% bonus?

No.

There are a good few 'clean' accounts paying more though, but where this account scores highly is it's ability to both send & receive the new faster payments.

lilmissmup

Thanks.

Interest is paid in April so i would get the money earned from now to Feb even if i withdraw right?

EDIT Thinking about it would i be better using the e-saver or another account that pays interest monthly to get it for the actual trip?

I am sorry for sounding so dumb but after finally releasing how stupid debt is i am desperate to make my money work for me!

jem16

lilmissmup wrote: »

Thanks.

Interest is paid in April so i would get the money earned from now to Feb even if i withdraw right?

If you close the account you will get interest paid up on closure. If you leave it open you would not get the interest.

runciblespoon

...until April.

jem16

runciblespoon wrote: »

...until April.

Yes that does make it slightly clearer which is what I meant.

Milarky

It actually says on their website: 'interest is paid in March' (I assume to be within the tax year) Does anyone know how this is affected by the bonus?

If interest is paid at the bonus rate for a bit of a year - then calculated at two rates for the next complete 'interest year' - March to March - then how do you collect on the bonus? Two suggestions might be: 1) reduce account balance in the middle of the year then all the interest is earned during the bonus rate period OR 2) close the account around the anniversary of opening and get the paid up interest then