Fixed rate saver

Enufsed

I opened a fixed rate saver in July 2021 and it matures July 2024.

The interest rate is 1.2%. With interest going up now is it worth me closing this account and opening a one year fixed paying 3.2%?

Bigwheels1111

Can you close the account, or are you stuck with it.
Plus 3.5% is available at Raisin.

https://moneyfacts.co.uk/savings-accounts/1-year-fixed-rate-bonds/?quick-links-first=false

Ahli United Bank (UK) PLC

Pompeydave1967

Agree with Bigwheels1111 can you actually shut a/c ? May be best reading the small print.

[Deleted User]

Hi,

you may to pay a penalty to close it.

refluxer

You can't normally close Fixed Rate accounts early simply because you've changed your mind, so you're likely to be stuck with it I'm afraid.

pedrodelgado

OP I presume is asking whether any penalty payment plus the interest so far, which would be lost I'm presuming, would in balance be better to be paid and money put elsewhere to reap benefits of increased rate for remaining 4 yrs. 
As has been said, better check small print, I can't see it being allowed or else everyone in that situation would be doing the same. I think you entered into a contract for them to have your money for a fixed rate and time scale, that's why you weren't complaining for the first 8 months until things started turning around. Think you'll just have to suck it up. That's the gamble you take on a 5 yr fix, sometimes you win, sometimes not. ATB. 

refluxer

@Enufsed - presumably it's not an ISA ? Usually, the only Fixed Rate savings accounts you can close early and pay a penalty are Fixed Rate Cash ISAs. 

Enufsed

Thanks.

I don't know why I chose this account. I've got a few accounts but only fixed for one year and all with a couple of £K in each one. 

I need to read the small print again. I can see it makes sense that you can't close fixed rate accounts just because interest rates are go up.

wmb194

refluxer said:

@Enufsed - presumably it's not an ISA ? Usually, the only Fixed Rate savings accounts you can close early and pay a penalty are Fixed Rate Cash ISAs. 

For non-Isas it really depends on the provider. Most banks and BS' don't allow withdrawals but I know some of Nationwide's - the ones opened in branch - can be closed early with an interest penalty.

refluxer

wmb194 said:

refluxer said:

@Enufsed - presumably it's not an ISA ? Usually, the only Fixed Rate savings accounts you can close early and pay a penalty are Fixed Rate Cash ISAs. 

For non-Isas it really depends on the provider. Most banks and BS' don't allow withdrawals but I know some of Nationwide's - the ones opened in branch - can be closed early with an interest penalty.

Thanks for that info. I'd not noticed that before and you're right - their online fixed rate savers don't allow early closure but their branch-only fixed savers do, with a penalty. I'm actually a Nationwide customer but have long-since stopped looked at their fixed-rate accounts due to the rates being so poor.

@Enufsed in which case, definitely read your account T&Cs just to be sure

Mary_Alice

I opened a fixed rate bond on Sat at 2.35% and can see todays rate is 2.75% , as it is within 14 days should I cancel it and open the new 2.75% one or just cancel it and sit on it until the next BOE rise? this is a new world to me ???