ICICI HiSAVE Fixed Rate Account: beware

LongTermLurker

SavingSteve wrote: »

To me this is a nothing thread. To complain about having to pay a fee to withdraw money on a fixed account is a little silly.

As perky_v says, that is the point of these accounts. They offer a good rate on the basis that you will not touch the money for the term, if you want instant access / no penalties the you do not pick this sort of account.

At the end of the day, to coin an old phrase, it does exactly what it says on the tin.

You'll have seen my comments above, where I agree it's sort of expected. However, what they're complaining about is that you get penalised twice (that wasn't the case when I took mine out though).

1) First version: rate offered ~7.0%. If you left it in 12 months you got 7% but if you withdrew it early you got, say, 5.5% - this is fair and expected (figures are examples and not necessarily accurate)

2) Second version: rate offered 7.0% providing you waived the ability to cash in early. If you wanted the option to cash in early, you only get 6% if you don't cash in and only 3% if you do - this is a bit unfair because you are paying for the flexibility and then paying extra for the usage.

I think the earlier options were fairer, where if you leave it alone you get one rate and if you take it out you get another, rather than having one rate if you don't, one if you might and a third rate if you do.