The Family Building Society

givememoney

I had a 2 year fixed savings account with The Family Building Society.  This came to an end in June and because I didn't do anything (I realize now of course I should have been more careful) they automatically pushed it into another 2 year fixed account with an interest rate of 0.5%.

I rang today to ask if they could move it into another account and asked for leniency due my great age (73).  I was told no, nothing I could do have to wait till 2 years till it matures. It is a joint account with my husband who is 4 years older than me.  I asked the man what would happen if one of us were to die before the maturity and he said it would just revert to the surviving person and they to couldn't lay their hands on it until 2023 either.

Suppose this was the only money we have and we need it what are we supposed to do.  I was prepared to pay some penalty for cancelling but told again this wasn't an option.

Any advice would be gratefully received.

Malchester

Sorry but when you sign up for a fixed term account these are the rules. If you could withdraw money from a fixed term account when you wanted to we would all sign up for the longest fixed term (and hence biggest interest rate). The financial organisations have their planning to do. Easy access accounts pay less interest because they know the money could be needed at any time. The longer the term the more stability they have in terms of planning whn money will be withdrawn

givememoney

I appreciate that, what is concerning more now is, the fact we cannot get hold of the money for nearly two years. We are both elderly and may need that money, surely even without interest it is still our money and we should be able to access it if need be?

eskbanker

givememoney said:

I appreciate that, what is concerning more now is, the fact we cannot get hold of the money for nearly two years. We are both elderly and may need that money, surely even without interest it is still our money and we should be able to access it if need be?

Yes, it's your money but in itself that doesn't grant you unfettered access to it if you've locked it away in a fixed term account, and your age really doesn't make any difference.

Does your reference to "Suppose this was the only money we have" signify that you do have access to other funds?

dunstonh

Suppose this was the only money we have and we need it what are we supposed to do.

The whole point of fixed term deposits is that you tie the money up for the period of the fix.    This is why you get a better rate. 

I was prepared to pay some penalty for cancelling but told again this wasn't an option.

The majority of FTDs will not allow earlier access apart from death (or second death where joint).   There is nothing unusual with that restriction.

We are both elderly and may need that money, surely even without interest it is still our money and we should be able to access it if need be?

It hasn't ceased to be your money.  

Any advice would be gratefully received.

It sounds like this is not the only money you have from your wording.  So, are you actually in a shortfall that would see you need money in the remaining 21 months?

If so, you could play the senile/mentally incapable to understand what you are doing card.  i.e. tell them that you couldn't read the letter as you didn't understand it and get confused with things.   You would be reliant on them believing that is the case (they will listen to the phone call you have had already for example) and there is the moral side that you would be using a goodwill gesture for those that are genuinely mentally unable to understand things.  Plus, they may withdraw future access to term deposits with them or ask future transactions to have the support and verification of a responsible adult/family member.

Or if you had a genuine reason for ignoring their letter.  Such as the death of a direct family member resulting in inaction due to grief. 

givememoney

Maybe I'm thinking way back, but I thought if you needed the cash, you could withdraw but lost your interest. Are all these accounts the same now, locked in no matter financial hardship or even death?

dunstonh

Maybe I'm thinking way back, but I thought if you needed the cash, you could withdraw but lost your interest.

That was typically the case on notice accounts rather than fixed term deposits.

Are all these accounts the same now, locked in no matter financial hardship or even death?

Pretty much most of them (and have been for decades or more)

Albermarle

another 2 year fixed account with an interest rate of 0.5%.

To make it worse ( sorry !) it is a poor interest rate for a two year fix. 

ColdIron

givememoney said:

Maybe I'm thinking way back, but I thought if you needed the cash, you could withdraw but lost your interest. Are all these accounts the same now, locked in no matter financial hardship or even death?

This is still true for cash ISA accounts but pretty uncommon for non-ISA ones. Even some of the National Savings and Investment ones have switched over in the last few years to no access until maturity

Malchester

If this was the only money you had it wasnot a good idea to stash it away on a fixed term basis. 

givememoney

Thanks everyone, what I have learnt from this exercise and your replies are, at our age we must sacrifice higher...ha ha interest rates for easy access.