Closing a fixed rate ISA

kev2009

Hi,

I have a fixed rate ISA with Clydesdale bank. I opened it in April, fixed for 2 years. However, things have changed and I now need to get hold of the money. It doesn't allow part with drawls so I will need to close the account but I recall them saying if I closed the account early, it was subject to 180 days loss of interest.

Now, I opened the account around mid-late April so it hasn't been open 180 days.

Does this mean I will get back my capital and no interest? Or will they calculate 180 days interest and take that off my capital and give me the remainder?

Thanks

Kev

Chino

Based on the manner in which Clydesdale Bank handles withdrawals made without giving 40 days' notice from its Cash ISA – 40 Day Notice account, my guess is the latter - the balance of the charge will be deducted from your capital.

"http://www.cbonline.co.uk/resources/1702e3804f81ec05a8bebfc817e3d067/CS7-0815.pdf"

eskbanker

They will also pay about five months' worth of interest that you'll have earned from April to September so you should only lose about a month's worth of interest from your capital overall.

kev2009

Hi All,

I should of said I have the 2 year fixed Cash ISA which was paying 2.1% at the time, not the 40 day notice account.

I thought they would just pay me back the capital and just not pay any interest on the money...

Kev

Archi_Bald

kev2009 wrote: »

Hi All,

I should of said I have the 2 year fixed Cash ISA which was paying 2.1% at the time, not the 40 day notice account.

I thought they would just pay me back the capital and just not pay any interest on the money...

Couple of days ago you recalled there was a 180 day loss of interest. That would still be the case now. So any interest you earned in the last 5 months or so will be lost, plus you'll have to pay about a month worth of interest extra.

kev2009 wrote: »

It doesn't allow part with drawls so I will need to close the account but I recall them saying if I closed the account early, it was subject to 180 days loss of interest.

kev2009

thanks, hmmm might have to see if i can hold off until i get to 180 days.. can't afford to pay anything from it as I need the money for something else.

Thanks for your help guys

Kev

ManAtHome

A months interest would be around £1.80 per thousand quid.

kev2009

Thanks all, very useful to know thanks!