Notice accounts/interest/notice..?

C_Mababejive

Generally,if you have a notice account...when you give notice,do you still get interest paid up until you withdraw or do you loose interest during the notice period?

Also,do Banks and BS frown on people who give continual notice i.e month on month?

I'm thinking of the Newcastle BS 5yr fixed bond which has a 120 day notice escape route.

Should i be concerned about the stability of Newcastle BS as it has exposure to the Iceland KSF debacle and also reported a half year loss of £0.9m.

Stompa

C_Mababejive wrote: »

Generally,if you have a notice account...when you give notice,do you still get interest paid up until you withdraw?

Normally, yes.

alanq

I know that when we were looking for catches in what appeared to be the "too good to be true" Newcastle 5-Year Bond Issue 1 we got confirmation that there was no loss of interest during the 90-day notice period. Unless otherwise stated in the Ts&Cs I believe interest has to be paid during the notice period.

It is common for providers to allow only one notice period to run at a time. I haven't seen anything on that subject within Newcastle's Ts&Cs. So long as on complies with the Ts&Cs I don't see how they can "frown".

Within the FSCS limits I would have no concerns.

Potential savers need however need to note that the account is "120 notice" NOT "120 day notice or loss of interest" and should therefore not moan when they suddenly decide that they urgently need their money and they cannot gain immediate access to it.