eSaver withdrawal: how is interest paid?

JimCole

hi

i've just sold my flat and have £200k equity to put into 4 savings accounts (for safety) whilst i rent for a while. Currently the accounts i'm looking at - which have easy access and pay the best rate - seem to be those that will only pay interest annually. i don't need to access the cash monthly but will probably be looking to use it in under a year and don't want to have a 3 month notice period.

what i'm confused about is how is the interest paid on my account if i withdraw before the year is out? if, for example i withdraw it all and close the account will i paid interest for that 6 months or do i need to keep a £1 in there and wait until the end of the 12 months?

any help much appreciated

RayWolfe

Most accounts will pay interest earned to date when the account is closed.

LittleVoice

What RW says is correct - that MOST accounts would pay accrued interest at the time of closure. However do read the T&C of individual accounts so that you are sure of all the conditions - eg even though it may be possible to access the funds quickly, there may be a penalty if more than one withdrawal is made.