taking money out on abbey esaver

redpin_2 · 21 February 2009 at 5:33PM

i noticed in the information relating to my abbey esaver account it says

"Interest earned every month that no withdrawal is made. In a month in which a withdrawal is made, no interest is earned on the account balance (except in February, when withdrawals are allowed without loss of interest). The AER will be lower if you withdraw."

im planning to take the money i put in at the moment, this month and march, out in april for my isa account. but it says the AER will also be lower if i withdraw, i dont understand that. is it repeating what it said in the lines before about no interest being earned or implying that the AER will go lower throughout the next year or so i.e. from 3.10 AER to 2.40. i cant find the T&C for it so i was wondering if anyone can help me with these wording troubles

LittleVoice · 21 February 2009 at 5:42PM

The AER will be lower than the example they quote - and they cannot say what it will be because it is affected by the timing and amount of withdrawals. It is not repeating the same information but providing further information.

redpin_2 · 21 February 2009 at 6:56PM

thanks for the fast response, i guess i should think again before puttin money in it/only do it if im not planning to use

G_M · 22 February 2009 at 1:29AM

The way to maximise your cash if you need to withdraw, is to CLOSE the account and withdraw it ALL, and to do it on the 1st day of the month. That way you get no interest for that month (as would have been the case if you'd just withdrawn £1), but you have all you £ and can move it elsewhere to earn interest for the rest of the month with a new bank.