early closure of fixed rate bond

jonemajobe

Hi, I have some money in an 18 month fixed rate bond with Charter Savings Bank. It's earning 1.5% interest and doesn't mature until next August. Many fixed rate bonds allow early closure with a penalty of 3 or 6 months loss of interest. Not this one. T & C's are clear. No early closure. Pretty sure there's nothing I can do except be more careful next time. But if anyone has any ideas ...

km1500

Fixed rate ISA bonds always allow early closure (they have to by law).

Non-ISA bonds rarely do. There is nothing you can do.

refluxer

jonemajobe said:

Many fixed rate bonds allow early closure with a penalty of 3 or 6 months loss of interest.

Which banks are you thinking of that allow this, out of interest ? I've opened fixed rate accounts with many different banks in recent years and none of them allow early withdrawals. I know that Nationwide used to (with their eBonds) but they don't any more.

The_Fat_Controller

Nothing you can do, I am in the same situation with another bank.

wmb194

refluxer said:

jonemajobe said:

Many fixed rate bonds allow early closure with a penalty of 3 or 6 months loss of interest.

Which banks are you thinking of that allow this, out of interest ? I've opened fixed rate accounts with many different banks in recent years and none of them allow early withdrawals. I know that Nationwide used to (with their eBonds) but they don't any more.

With an interest penalty you still can with Nationwide's branch based bonds but their rates are nowhere near as good as the online versions.

https://www.nationwide.co.uk/savings/fixed-rate-bond/

Access with an interest penalty used to be quite common or the rare 90 day notice without penalty (Newcastle) but they seem to have largely disappeared. Thinking about it it does make sense: banks and BS' will have been anticipating rates rising at some point and no access during the term except on passing away was a way for them to lock-in low rates.

 

jonemajobe

Thanks for response. I must apologize - when I double-checked, the fixed rate accounts I closed early were fixed rate ISA's. I wasn't aware of the difference between fixed rate bonds and ISA's when it comes to early closures. Glad I know now. Thanks again.