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Paragon Bank - Unable to close fixed rate account

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I currently have 3 fixed rate savings accounts open with them.

I called today to close 2 of them as I need the money.

I was surprised to be told that in the T&C's that I cant withdraw or close the accounts. (Who reads all the t&c's?)

I'm now in a real situation here, its a lot of money I need and I'm a bit sick that I am told I cant touch my money and close the account.

Is there anything I can do ?
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Comments

  • Neil_Jones
    Neil_Jones Posts: 9,548 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Unfortunately the whole concept of fixed savings accounts is that the interest rate is fixed for the duration of the term and that you cannot withdraw early - it would have told you this at the point of application and contained in the T&Cs. Which you really should have read before committing.

    You will get your money back - at the end of the term. Until then, looky no touchy I'm afraid. If you think there is even a slight chance of needing access to the money before the term ends, never tie it up in a fixed rate account but an easy access account. You sacrifice interest for the easy access.

    Sorry.
  • Prism
    Prism Posts: 3,847 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    No, you are putting your money away for a fixed duration. I wouldn't exactly say its only in the terms and conditions. The name of the account is something like a 2 year account and the description says you are locking away your money for a fixed time.
  • ColdIron
    ColdIron Posts: 9,823 Forumite
    Part of the Furniture 1,000 Posts Hung up my suit! Name Dropper
    Well you signed or ticked a box confirming that you had read and understood the T&Cs when opening the account
    Is there anything I can do ?
    Doubtful, it's how fixed rate/fixed term deposits work
    • You will only be able to withdraw your money from your account when the fixed rate term comes to an end, known as your maturity.
    (Who reads all the t&c's?)
    Most people and I suggest you do as well in the future
  • Cage
    Cage Posts: 209 Forumite
    They can keep the interest, I don't really care about that.

    Solicitors fees, stamp duty, estate agents fees etc, bought and sold house thinking I can get to that money if i close the accounts.

    I'm screwed.
  • webjaved
    webjaved Posts: 618 Forumite
    Sixth Anniversary 500 Posts Name Dropper
    Always read the Terms and Conditions. It's just tough luck. When does the fix rate term come to an end?
    Save £12k in 2019 #154 - £14,826.60/£12k
    Save £12k in 2020 #128 - £4,155.62/£10k
  • Neil_Jones
    Neil_Jones Posts: 9,548 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Cage wrote: »
    Solicitors fees, stamp duty, estate agents fees etc, bought and sold house thinking I can get to that money if i close the accounts.

    I'm screwed.

    when did you open the fixed rate account and for long? Two years? Three? Five? How long does it still have to run?
  • Cage
    Cage Posts: 209 Forumite
    Opened the 2 I need to close in Sept 18. They are both 1 year fixed rates. So they 'mature' Sept 19
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    edited 23 April 2019 at 2:51PM
    Cage wrote: »
    They can keep the interest, I don't really care about that.

    Solicitors fees, stamp duty, estate agents fees etc, bought and sold house thinking I can get to that money if i close the accounts.

    I'm screwed.
    Opened the 2 I need to close in Sept 18. They are both 1 year fixed rates. So they 'mature' Sept 19

    So it's less than 6 months? Your basic options include:

    - Get a loan, overdraft or other finance facility (credit cards etc) to cover your short term cashflow needs and the bills for solicitors or estate agents

    - Try appealing to their better nature and say that you realise that you have been an idiot but will lose your new house if you don't pay the stamp duty for it I]in reality, this is an exaggeration because you will just get a penalty +interest for paying it later than the 30 day limit[/I and your solicitor, estate agents and other creditors are pursuing you for your debts while the burden of your personal circumstances is making you ill etc, please please please can the funds be released with (e.g.) 100% penalty on the interest
  • Cage
    Cage Posts: 209 Forumite
    bowlhead99 wrote: »
    So it's less than 6 months? Your basic options include:

    - Get a loan, overdraft or other finance facility (credit cards etc) to cover your short term cashflow needs and the bills for solicitors or estate agents

    - Try appealing to their better nature and say that you realise that you have been an idiot but will lose your new house if you don't pay the stamp duty for it and your solicitor, estate agents and other creditors are pursuing you for your debts while the burden of your personal circumstances is making you ill etc, please please please can the funds be released with (e.g.) 100% penalty on the interest

    I think that's probably my best and only bet. I've got nothing to lose, thanks.
  • Neil_Jones
    Neil_Jones Posts: 9,548 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    To put a positive spin on it, it could have been far worse, you only have to wait six months. You could have gone for a five year fix and be well and truly up a creek without a paddle.

    You can appeal to their better nature (as above) but be fully prepared for them to say "not our problem". Bowlhead99 has probably the ideal path for you already suggested in the circumstances.

    I suggest you learn from this for next time.
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