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What happens if I close annual interest savings mid-year?

scarletjim
Posts: 561 Forumite


If I have a variable rate savings account with no penalties for withdrawal etc, what happens if I close the account mid-year? Will they pay me all the accrued interest I would have got at the end of the year, or do I have to leave the account open until the annual interest date in order to get that little extra bit of interest?
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Comments
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If you close it you will get interest upon closure.
If you withdraw all the money but keep the account open, interest will be paid annually.0 -
scarletjim wrote: »If I have a variable rate savings account with no penalties for withdrawal etc, what happens if I close the account mid-year?0
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I am talking about a variety of accounts that I opened last July for my savings, with Egg, Sainsburys, Ulster and ING Direct. They all had a bonus applicable for about 12 months, and all of them allowed unlimited withdrawals etc. These accounts are now paying me only 2.5% to 2.75%, and if I open new accounts with (for example) Santander, I can get a significantly better rate, about 3%.
But if the interest on these old accounts is paid annually, and due in July, I was wondering if I have to leave them open to get the interest in July, or if all the interest earned to date will be paid now if I close them - and I believe the poster previous to you has answered this question with the answer I was hoping for. :T0
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