Question about postoffice online savings

Atom_Ant

Hi all,

Been a long time reader/lurker here, but have just registered.

This may seem a silly question, but I can't seem to find the answer anywhere.
I have a Post Office online savings account with an interest rate of 2.9% (Ish) which expires on the 2nd - a year from when I opened the account. Now obviously I have started to look around for somewhere else to put my money, but the interest on the current one is not paid until the end of March.
What happens if I move my money sooner - If I close the account before interest payout - do I lose it? Should I leave my money in there until the interest is paid despite the lower interest rate between the 2nd feb and end of march?
It's not a huge amount of money, but would be nice to know how this works!

confused!

Rafter

Depends on the terms of the account.

If it is some sort of fixed bond or notice account then there might be a penalty for early withdrawal.

If it is instant access you can move the money now and the interest will still be paid at the start of next month based on the full balance for 11 months and 0 for the remaining month. (you can't earn interest money that isn't in the post office account during most of January!)

Good luck

R.

Atom_Ant

Thanks for the speedy reply!

It is just a normal instant access account, so there are no penalities for withdrawals.

So I will aim to have a new account set up for the 2nd Feb and whip my money out of there.

Does anyone have any thoughts about Santander savings? I really need instant access to the money and they seem to have a good rate.