CB Fixed Term Deposit - Early Closure

PnCVL

Hi Folks,

Looking for a bit of advice please, if you don't mind?

A disabled friend has a Clydesdale Bank 1yr Fixed Term Deposit Account with a modest amount of capital in it. The capital was put in January/February this year under advice from the Local Housing Department when applying for Housing Benefit for the interim period (capital is to move abroad and live out their years in a climate that betters their health). 6-months on and a letter arrives saying the Housing Benefit is to stop as the 26wk period has ended and the capital in the Fixed Term Deposit Account is now counted towards savings and puts them over the threshold for Housing Benefit.

As a result, friend is now set to be homeless for the next six months as the rent is not affordable without the Housing Benefit and can't bring plans to move forward as no access to the capital.

Questions are:

Can the account be closed by a Manager at the bank under exceptional circumstances? Loss of interest and small penalty imposed...

Can anyone above the Manager (Ombudsman, or similar) effect the closure and return of capital?

Thanks in advance,

PnCVL

PnCVL

Set the scene: The capital was from sale of house in a divorce settlement, not enough to buy again in UK or abroad so going for a long-term lease abroad. The interim period was required to tidy up affairs, finalise divorce and find somewhere suitable abroad for the long-term lease.

Drp8713

Have they read the account terms and conditions? That will hold the answer as to whether a withdrawal is possible. As this was the persons own fault I don't think this is an "exceptional circumstance"

Why if they can't afford their rent are they a. Locking away the money in a fixed term account and b. If they have money why were they expecting for the taxpayer to pay their rent?

PnCVL

Drp8713 wrote: »

Why if they can't afford their rent are they a. Locking away the money in a fixed term account and b. If they have money why were they expecting for the taxpayer to pay their rent?

The limited capital is all they have to get abroad and survive abroad but this couldn't be effected immediately on sale of house for health reasons. This led to the renting a flat in the UK until all was settled with health and divorce agreements.

traineepensioner

Clydesdale are pretty clear about terms & conditions for their deposit accounts and these are repeated on the website & in their T&Cs

"Withdrawals are not permitted
Please note withdrawals or early closure of the Term Deposit are not permitted under any circumstances during the Fixed Term except in the event of the death of the Account Holder (or one of them if joint account). See Term Deposit Terms and Conditions (PDF, opens in new window) clause 2.3 for further information, if there is anything that you don't understand please contact us for clarification."

It could be the fact that the money was not available to your friend that allowed him/her to claim housing benefit.:cool: The situation hasn't changed and the money is still unavailable until the end of the fixed term.

You could always try writing to them but I would suggest using a better reason for the withdrawal request.

.....Just wondering whether they plan to return to the UK once the capital has been eroded to a level acceptable to claim benefits!

Good luck.