Closing savings accounts

browneyedboy

Hi all,

Let's say I had a savings account that paid interest annually (e.g. at the end of the calendar year) and I closed the account part way through the year (e.g. because I found a better deal elsewhere and transferred all the money). What happens to the interest that would have accrued on my savings, but hadn't yet been paid to my account because I hadn't reached the payout point at the end of the year? Am I credited with it upon closing the account or do I lose it?

Cheers.

Anon

May depend on the company/bank but when I asked this very question to Birmingham Midshires (rate of 5.4% at the time, paid annually, when Egg then came out with 5.45% a month later). They said interest would be calculated and handed over up until the point that you closed the account. I haven't done this yet as the .05 difference would be lost in the time it took to transfer to a current account and back out again!

Anon

deemy2004

Interest would be calculated upto the account closure date and added to the account as a closing balance.