What constitutes an "emergency" to close a fixed rate account?

moonmonkey02

I'm being told by AIB and B&B that to close and withdraw funds from 2 year fixed rate accounts it needs to be for an emergency (AIB) or extenuating circumstances (B&B). I need the monies for the purchase of a house otherwise it will not go through. Has anyone else experienced this when trying to close a fixe rate account? I accept these clauses were in the T&Cs when I opened the account but I really do need the money. Any advice welcome, thanks.

alared

You can usually closed them BUT there will be a very heavy penalty to pay.
Read your T&C`s where it will tell you.

ps they`ll let you close it if you`ve died.

ses6jwg

I thought usually you just lost any interest accrued?

D1zzy

Unless your Ts & Cs say that withdrawals are permitted (usually with loss of interest)during the period of the bond - death!!
(I notice more and more of the current batch say withdrawals NOT permitted)

dougz_2

moonmonkey02 wrote: »

I'm being told by AIB and B&B that to close and withdraw funds from 2 year fixed rate accounts it needs to be for an emergency (AIB) or extenuating circumstances (B&B) .

Have you tried asking each of them to tell you some example reasons they would accept?

oldfella

you could try a complaint followed by the Ombudsman. Death really doesnt sound like an emergency to me. I am not sure moving house does either. I would guess that if the T&Cs say "emergency", the ombudsman would look for what in common use could be described as an emergency. Like an unexpected illness needing significant funds maybe.

bryanb

Fire damage, Flood , Storm damage?

Paul_Herring

moonmonkey02 wrote: »

I'm being told by AIB and B&B that to close and withdraw funds from 2 year fixed rate accounts it needs to be for an emergency (AIB) or extenuating circumstances (B&B). I need the monies for the purchase of a house otherwise it will not go through.

I somehow think that 'oh I need the money back for a deposit on a house' does not count as "exceptional" for any clauses these institutions put in place to stop people putting money in to earn a high rate of interest and then, erm, pull them out early for mundane things such as a deposit on a house.

If you thought you needed the funds before the end of term, you're (at best) participating in deception. (And, I suspect, will be punished in lack of interest on the capital)

If you didn't think at the time you'd need the funds, then - well - you shouldn't still need them. Or learn a lesson from it.

Either way - you promise to have the funds there, they repay you. You withdraw early, expect a penalty.

Imagine what would happen if your 25 year mortgage ran along the same lines...

"Sorry Mr Monkey, 1 month ago we promised you a 20 year mortgage last year at 3% for at least the next 5 years, but due to <elided> we've found we can't offer you that any more. You have the choice of (a) clearing your mortgage with us, or (b) paying 20% instead.
"

withnell

oldfella wrote: »

Death really doesnt sound like an emergency to me.

Bond would end anyway, with interest paid to date

cardsharps

moonmonkey02 wrote: »

I'm being told by AIB and B&B that to close and withdraw funds from 2 year fixed rate accounts it needs to be for an emergency (AIB) or extenuating circumstances (B&B). I need the monies for the purchase of a house otherwise it will not go through. Has anyone else experienced this when trying to close a fixe rate account? I accept these clauses were in the T&Cs when I opened the account but I really do need the money. Any advice welcome, thanks.

Get the missus to phone up and tell them you're brown bread. Lovely Jubbly.

ed123_2

......bridging loan for the two years using the savings as backup??...a mortgage broker may be able to help??