Withdrawn fixed term saving accounts

YorkshireCB

I opened a fixed term account with a bank, as recommended on this site, on 6 April 2020 and paid a five figure deposit. In June I deposited another substantial amount only to find it had been returned with this message, "This product has been withdrawn and unfortunately, any deposits made after this date cannot be accepted for the reason the savings issue had been withdrawn". My initial payment is secure but I now find I cannot withdraw until the fixed period end.
As no terms have been broken from my side of the contract do the bank the right to hold my capital for the fixed term yet not allow any further investment, and is this common practise?
Thank you

eskbanker

Yes, it's common (arguably standard) practice for fixed-term savings accounts to have a limited initial window within which to make deposits, and then not to allow withdrawals until the end of the term.  Nothing stopping you from opening one or more new accounts if you have more to deposit though....

Neil_Jones

YorkshireCB said:

I opened a fixed term account with a bank, as recommended on this site, on 6 April 2020 and paid a five figure deposit. In June I deposited another substantial amount only to find it had been returned with this message, "This product has been withdrawn and unfortunately, any deposits made after this date cannot be accepted for the reason the savings issue had been withdrawn". My initial payment is secure but I now find I cannot withdraw until the fixed period end.
As no terms have been broken from my side of the contract do the bank the right to hold my capital for the fixed term yet not allow any further investment, and is this common practise?
Thank you

Read your T&Cs, the window for depositing would most likely have been 14 days and yes, it is fixed and you cannot withdraw until the end of the savings period.  All explained in the documentation you should have got (and read) before you deposited, and by going past the deposit window without closing the account, you've committed.

But yes, you can open another one with the same provider, or a similar "issue" or similar, bearing in mind the same principles will apply.

dunstonh

My initial payment is secure but I now find I cannot withdraw until the fixed period end.

As is usual with most fixed term deposits.    Death is often the only way to get money out.

As no terms have been broken from my side of the contract do the bank the right to hold my capital for the fixed term yet not allow any further investment, and is this common practise?

FTDs are typically issued in tranches. i.e. available from x date to an expiry date unless the tranche hits its allocation of funds early and is closed before that date.   Usually replaced days later with a new tranche.

FTDs are frequently used to finance mortgages, secured debts or other things that require financing for that period.   Hence the tie ins and why you get a better rate.

YorkshireCB

I had read the T&C and did understand the fixed term & non withdrawal, it just seems like a legal banking scam.
Thank you all for taking the time to reply

LittleVoice

YorkshireCB said:

I had read the T&C and did understand the fixed term & non withdrawal, it just seems like a legal banking scam.
Thank you all for taking the time to reply

Why a scam?  You opened a fixed term account, deposited money which will now be available at the end of the fixed term, the date which you knew when you sent that first deposit.

You tried to add more money a couple of months later, not even a couple of weeks when it might have been slightly more reasonable to expect further deposits to be permitted.

dunstonh

I had read the T&C and did understand the fixed term & non withdrawal, it just seems like a legal banking scam.

1 - you clearly did not read the T&C and/or did not understand them.

2 -Just because you cannot understand something does not make it a scam.  It is entirely logical how FTDs work.

A fixed term deposit tranche will have a period of application between two dates (or early withdrawal if the allocated funds are subscribed fully).    If you deposit bewteen those application dates you get those terms.   Once you are outside the application dates, that offer is no longer available to you.     The bank will usually have a new tranche available at that point.

bonkersbonkers1

There is one other way of withdrawing funds from a Fixed Term Deposit other than dying - if you can get a doctor to diagnose you mad - you can get your money out early!

RG2015

bonkersbonkers1 said:

There is one other way of withdrawing funds from a Fixed Term Deposit other than dying - if you can get a doctor to diagnose you mad - you can get your money out early!

Or an alternative diagnosis of bonkers - bonkers, perhaps?

bonkersbonkers1

I remember this term from when i had FTD's with LloydsTSB as it was then. It just stuck with me LOL

London7766551

YorkshireCB said:

I had read the T&C and did understand the fixed term & non withdrawal, it just seems like a legal banking scam.
Thank you all for taking the time to reply

No my friend, the bank offered to take your money for a set period and then give it back. You said ok and gave them the money. Now you must wait for them to give it back. That was the agreement you had with them. There is no scam. If you require access to money urgently, you should check where you are putting it first. People need to learn to own more of their own responsibility in this modern world.