Bonus interest on ICICI HiSAVE Bonus Saver and other bonus accounts

Play_the_Game

I have opened a new ICICI HiSAVE Bonus Saver Account and have noticed in the terms and conditions the following:

"If you close your Account before 12 months from the account opening date, the Bonus Interest rate would not be paid".

This could mean losing quite a chunk of interest if the account is closed within 12 months and makes the interest rate on the account much less attractive.

I have not noticed such a phrase in the terms and conditions of similar bonus type accounts with other banks/building societies and always assumed that if an account was closed before the bonus period ended then the bonus interest would be paid up until the account closure date but this has got me a bit worried that this might not be the case.

Does anyone know if it is usual to lose the bonus interest on accounts if they are closed before the bonus period ends?

alanq

Each account is governed by its own terms & conditions. One must read and understand them BEFORE making a deposit.


I don't know how common the total loss of bonus is but there are certainly other accounts out there which do this.

Thrugelmir

Play_the_Game wrote: »

Does anyone know if it is usual to lose the bonus interest on accounts if they are closed before the bonus period ends?

Why would the bank offer bonus interest if the money were either withdrawn early or the account closed. The bonus is to incentivise savers to remain "in". Otherwise serves no purpose. Not possible to have ones cake and eat it.

alanq

Thrugelmir wrote: »

Why would the bank offer bonus interest if the money were either withdrawn early or the account closed. The bonus is to incentivise savers to remain "in". Otherwise serves no purpose.

There are accounts that offer introductory bonuses whereby new accounts earn a bonus of x% for a limited period after which a standard rate applies. This is in the hope that the saver will not remember or cannot be bothered to switch out at the end of the bonus period. At least some of these will pay interest including the bonus if the account is closed early.

Play_the_Game

Tesco often introduce new accounts with the same name but a little bit of a higher bonus than the previous incarnation meaning you have to open a new account to get this extra bonus - if you close the old account they do pay the bonus interest up to the closure date. Marcus are paying the full interest rate including the bonus each month on their instant access account. I therefore thought that all bonus accounts would operate this way. I seems not - though luckily I do always read the small print!

Play_the_Game

At the risk of appearing to "bang on" about this, I don't think it is being made clear when when this ICICI account is being hailed as the best paying easy access account that no bonus will be payable if the account is closed within 12 months. After a little more research I have found that those just below ICICI account - Marcus, Cynergy, Tesco and Post Office - all pay the bonus proportion of their interest for the first year, irrespective of whether or not it is closed within 12 months. I think ICICI have seen a way to get their name to the top of the "best buy" tables by inserting a somewhat sneaky condition for the bonus payment into their terms and conditions which could catch people unawares.

cjv

Just leave £1 in the account if you need to withdraw your funds? assuming the penalty is for closure and not withdrawals.