Quick advice needed on transferring money to another BS/Bank.

sindersoot

I currently have money in a savings a/c with Halifax a one yr fixed rate 3.6% which I want to close. The interest will be paid up to date of closure with no loss of interest already gained. What I'd like to know is the best way of closing this account would it be transfer the money into my current a/c and then open new accounts, 3 yr fixed bond 5.10% with Principality, 2 year fixed bond 4.35% with AA and easy access savings a/c either with Halifax or other.

Lokolo

Erm. No loss of interest? Are you sure?

sindersoot

Yes, I was in at the branch last week and they said I wouldn't lose any interest but the a/c would be closed immediately should any withdrawal made. I wasn't sure what was about with other rates at that time so didn't look into transferring money at that point.

Lokolo

sindersoot wrote: »

Yes, I was in at the branch last week and they said I wouldn't lose any interest but the a/c would be closed immediately should any withdrawal made. I wasn't sure what was about with other rates at that time so didn't look into transferring money at that point.

Please go back into branch and ask them to clarify because T&Cs state:

If you need to withdraw your money before the end of the term, you can lose your fixed rate option (as long as it has been open for three months). If you close early you lose an amount equal to six days’ interest for each remaining month or part month of the term you chose (minimum of 30 days).

http://www.halifax.co.uk/HelpCentre/pdf/1_336326-2.pdf

Page 14.

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Unless it is about to mature? i.e. 1 year is ending?

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However, unless its an ISA, its best to transfer to current account, then you can transfer money easily to any account you then open.

sindersoot

Thanks for highlighting T&C's and I will certainly check again as it is always possible that someone has given me the wrong information.

sindersoot

'Phoned Halifax, I will try and explain! 2008 fixed rate finished at end of May 2009, therefore, new rate of 3.60% commenced at end of May 2009 which means under T&C's I have three months in which I can close the account without penalty. After three months I would be penalised from this year's interest but not the previous year's interest. Hope that makes sense.

Lokolo

sindersoot wrote: »

'Phoned Halifax, I will try and explain! 2008 fixed rate finished at end of May 2009, therefore, new rate of 3.60% commenced at end of May 2009 which means under T&C's I have three months in which I can close the account without penalty. After three months I would be penalised from this year's interest but not the previous year's interest. Hope that makes sense.

Ok that means you must quickly transfer out unless you want to tie the money upto May 2010....

Just transfer it to current account, then it doesn't put pressure on your making sure the right money goes into the right accounts in limited time;)

sindersoot

Yes, will do and thanks for help.

sindersoot

Once again, I contacted Halifax about closing this a/c and if closed prior to 31 August 2009 I would have gained no interest for the period 31 May - Aug 2009. Decided to leave money based on that however after today's date should I decide to close the a/c I would lose 6 days interest for each remaining month (9 months). I can't remember the exact figures offhand but for example if I closed the account tomorrow I would have to pay penalty of around £179. I would also gain around £195 being balance of interest remaining after penalty. I don't think that I could make the £179 penalty back again so probably best off leaving money where it is. Bit of a pain really as I would have liked to use some of it, that will teach me to forget to lift the interest in time prior to the next year commencing on fixed rate!