Fixed-term bond break

justaquickie

Does anyone know if banks/BSs involved in mergers and takeovers are legally obliged to allow savers to close fixed-tem bonds early? - and if so, without penalty?

All the work to stay within compensation limits can be undone leaving you dangerously exposed. I know KE offered break rates, but many others only seem to allow closure for genuine personal disasters. Nationwide/Derbyshire? Lloyds/HBOS?

dunstonh

are legally obliged to allow savers to close fixed-tem bonds early? - and if so, without penalty?

No and No. Only if they break the terms that were offered can they offer you a clean break.

Lloyds and HBOS are going to use individual licences for a while. Most fixed term deposits would have matured before they go to one licence.

cos69

justaquickie wrote: »

Does anyone know if banks/BSs involved in mergers and takeovers are legally obliged to allow savers to close fixed-tem bonds early

You only get the terms you signed upto when you took the bond out; sometimes there is mention of takeovers/mergers in the T&Cs. Its an interesting point you have raised and one that could be taken up with the FSA since they have to authorise these mergers - the result should not end up leaving you with less protection when they give the go ahead for a merger