Do fixed interest accounts stay fixed while application is processed?

savetilibleed

Do fixed interest accounts remain fixed at the rate advertised on the site when you start the application if the rate should subsequently change in the 10 days or whatever it takes to process?
Perhaps it was a silly question - I guess logically it shouldn't;)

Milarky

I would say that once the application is recieved the provider ought to honour the old 'offer' rate. There is an added complication if they don't, however. The Banking Code allows 'cooling off' (aka money back) for most accounts except fixed rates ones specifically. Stands to reason. You knew the rate (etc) you are going to get. So if you apply, and then the rate changes, you haven't really 'applied' for that one, so the provider should either

1) open the account on the original terms OR

2) hold your cheque and contact you to advise you of the new offer - allowing you to make a fresh decision.

I recently applied for a fixed rate account at the Melton Mowbray B Soc but the rate changed from the morning (when I went online and checked it, and put my stuff in the post) to the afternoon. It is now opened but I don't know which rate I got - I was not informed. But if the rate is not the rate when I applied, they will have to allow me to close the account - even though it is a 'fixed' rate - 'fixed' on the day they opened it???

[I'll check this one out tomorrow]

Scrundog

This is something Ive just done I took out an account paying 7% I knew that the money would not be available for ten days ,5 days after I open the account it was withdrawn on phoning them I was told as long as they received the opening balance within 14 days there would be no problem and the account would stand as when it was opened

Rhymsta

Some organisations will stick with the rate you think you are going to get and some won't - you will really have to ask them. I got 0.5% better rate on a Halifax Web saver than my wife and there was only a couple of days between our applications.

Milarky

Rhymsta wrote: »

Some organisations will stick with the rate you think you are going to get and some won't - you will really have to ask them. I got 0.5% better rate on a Halifax Web saver than my wife and there was only a couple of days between our applications.

With the Halifax 'fixed rate' offers I think you are applying for 'a product' whose rate is effectively fixed only when they receive the money (This is certainly true with their ISAs) But, as I said, they have to then modify the terms to say you will be able to change your mind for up to 14/16 days if you don't want to take the (lower) rate offered.