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

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?

Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    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.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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?
    Is this a hypothetical question? Or do you have a particular account in mind? Or maybe you already have the account now? If its not a hypothetical question what's the specific account in question?
  • scarletjim
    scarletjim Posts: 561 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    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. :T
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