Closing e-Savings Plus account interest question

King_Of_Fools

I opened a Nationwide e-Savings Plus account a few months ago when it was paying 2.1% and had a fair chunk in there. When the rate dropped to 1.7%, I moved some of the money elsewhere and have just reduced the balance to £1. I planned to leave it open for the rest of the year and not make any further withdrawals until I get the interest due at 2.1% (otherwise I could only get 0.1% on the whole year).

They just sent me a letter saying that the interest rate is falling to 1.25% but they also stated that I could close the account without losing the higher interest rate. If I did this, would I get paid the interest I have earned earlier so I could put it into an account with better returns rather than only earning 1.25% interest on my interest for over half a year? Or would I still have to wait for the anniversary to get my interest?

le_loup

If you close an account, you get the interest paid to you at the date of closure.

King_Of_Fools

le_loup wrote: »

If you close an account, you get the interest paid to you at the date of closure.

Thank you.

So it would pay me to close the account and move the interest elsewhere, even though I have only had it for a few months.

JOOI, ignoring the fact that the e-Savings Plus is no longer a good account, what would stop people from closing and re-opening these accounts whenever they got to their withdrawal limit and, hence, getting infinite withdrawals?

badger09

King_Of_Fools wrote: »

Thank you.

So it would pay me to close the account and move the interest elsewhere, even though I have only had it for a few months.

JOOI, ignoring the fact that the e-Savings Plus is no longer a good account, what would stop people from closing and re-opening these accounts whenever they got to their withdrawal limit and, hence, getting infinite withdrawals?

Because Nationwide allow you to open only 1 e-Savings Plus account?

http://www.nationwide.co.uk/savings/limited_access/e-savings_plus/summary.htm

King_Of_Fools

badger09 wrote: »

Because Nationwide allow you to open only 1 e-Savings Plus account?

http://www.nationwide.co.uk/savings/limited_access/e-savings_plus/summary.htm

I read that as you could only open 1 account at a time.

So if I close my e-Savings Plus account I can never open one again? In that case, it might be worth keeping it open in case the interest rates improve in years to come.

badger09

King_Of_Fools wrote: »

I read that as you could only open 1 account at a time.

So if I close my e-Savings Plus account I can never open one again? In that case, it might be worth keeping it open in case the interest rates improve in years to come.

I would read 'You may only open 1 e-Savings Plus Account' as meaning just that; only 1, ever.

However, Nationwide are not known for the clarity of their T&Cs :cool: so your interpretation could be correct. Banks usually specify 'Only 1 of each issue' or some similar wording, if that is what they mean.

You could send them a secure message, and if the answer is what you believe, print a copy of their reply, just in case you ever need it

grey_gym_sock

i have closed an e-savings plus account, and subsequently opened a new one.

unless you have already used 5 withdrawals (so that closing the account would make it 6 withdrawals), then you can close it without having the rate reduced to 0.1%.