30 days loss of interest

innovate

Well, I won't log back into the PO site just for the link to that insulting offer, but it took me less than 20 seconds to spot

1. the terrible interest rate (worse than their instant access account one, which has no restrictions on withdrawals)
2. the clause about 30 days loss of interest

https://forums.moneysavingexpert.com/discussion/4573261

lozzer wrote: »

It is very unusual to not give notice to withdraw.

It depends what sort of account it is - instant access accounts are just that - - no need to give notice, withdraw instantly. These sorts of accounts a very widely available (and many of them indeed pay quite a bit more interest than the PO Reward Saver). And of course, for the past several months we have had the phenomenon of [instant access] current accounts outperforming a lot of savings accounts.

You only have to give notice if the T&Cs say you need to give notice. Normally you get a slightly better interest rate on notice accounts, but obviously not so at the PO/BoI.

But I am sure you know all that.

Hominu

lozzer wrote: »

It strikes me that in any year you will only get 11/12ths of the advertised rate.

I disagree. Don't make a withdrawal and get the whole rate.

Make a withdrawal and lose 30 days interest.

Obviously they don't want you to make a withdrawal, but the ability is there if you want it, subject to a fee.

Porcupine

Can you close the account without the fee?

It would seem a misleading AER if you only get 11/12th of it, but then that only works if the account has a fixed term. If it's rolling, presumably you can keep your account for years and only lose the last month's worth of interest, which would be hard to express in an AER.

Alternatively, does the rate wind down to peanuts after a year? In that case, withdraw then and pay 30 days loss of interest at 0.1% (or whatever).

lozzer

The offer I got was not 'insulting'. What I failed to mention was that the interest rate offered was quite good. I was not complaining about that. What I felt aggrieved at was that I had taken for granted that at some stage I could withdraw without penalty or give notice.
A good lesson to lear.
The rate does lose an introductory bonus after 12 months so the advice to keep it in and lose 30 days of the poorer bonus is sound.
Thanks to all of you for working through this