Closing Savings accounts

Bendy1224

Hello all,

i am thinking about closing two of my savings accounts i have linked with my current account, as i have found an savings account elsewhere with another company which has a better interest rate. i know this probably sounds a very silly question to some people on here, but by closing both of my savings accounts, will that effect my credit profile.

thanks Ben .

Vortigern

Savings accounts are not reported to the credit reference agencies. Closing a savings account will have no effect on your credit rating.

Bendy1224

ok Vortigern,

cheers for clarifying that with me.

is there anything else i need to do before closing the savings accounts down, apart from transferring funds that are in the account.

Ben

Vortigern

You need to check the terms and conditions of those accounts. Is there a penalty for early closure, or a requirement for a regular monthly contribution?

If not, there's nothing else you need to do. Interest will be calculated up to the date of closure.

Tom99

Remember to save past statements as some banks cut you online access immediately you close the account. Make a note of the balance before the account is closed so that you can work backwards to the closing interest amount if need be.

For example Sainsbury's Bank will close the account and your online access. They will then send you an email saying you have a new secure message (presumable to say they have closed the account) which of course you cannot read because they have ended you online access!

Primrose

Just one point before you close the accounts. Are you ever likely to need some spare accounts again for separate purposes in the future, ie a short term savings project? Some savings accounts require rather complicated money laundering processes to open them. The alternative in that case might be to keep them, or one of them open with just £1 in it and make a diary note to add £1 or a similar small amount annually to prevent them from becoming dormant.