Kaupthing Edge closing exisiting fixed term accounts

drlindaevans

I apologise if this has already been raised by others - I'm new to this. My daughter, in all innocence, opened a Kaupthing Edge fixed term savings account (she already had another Kaupthing Edge account) a few days before the announcement of the interest rate cut. She successfully transferred £10,000 into it and it was for 12 months at over 7%. The money was in the account for about a week, then she received an email from them saying that they'd decided to close their fixed term accounts and were returning her money. She was then, of course, too late to snap up any of the main remaining good deals on fixed rate accounts because most of the best ones had been withdrawn. I also have money in a 6-month fixed rate Kaupthing Edge account, though mine was opened in early October. It seems that mine is remaining unaffected - at least, I haven't heard anything. Can the bank do this? If my daughter had already transferred her money and the account was set up, can they then simply decide to close it?

ryoko

http://forums.moneysavingexpert.com/showthread.html?t=1280421