Withdrawing from a regular saving account

RG2015

I have regular savings accounts with Club Lloyds, TSB, Nationwide and Lloyds which allow me to withdraw without any penalty.

If I withdraw my balances and stop paying in, will my accrued interest still be paid on the maturity date?

AmityNeon

Yes. If you withdraw full balances with no intention of further deposits, you can also close the accounts for immediate interest.

RG2015

AmityNeon said:

Yes. If you withdraw full balances with no intention of further deposits, you can also close the accounts for immediate interest.

Thanks, although I thought closing the account would reduce the interest rate payable.

Band7

RG2015 said:

AmityNeon said:

Yes. If you withdraw full balances with no intention of further deposits, you can also close the accounts for immediate interest.

Thanks, although I thought closing the account would reduce the interest rate payable.

It would depend on the T&Cs of your RS. I am not aware that LBG or TSB RSs have an interest penalty for closing.

RG2015

Band7 said:

RG2015 said:

AmityNeon said:

Yes. If you withdraw full balances with no intention of further deposits, you can also close the accounts for immediate interest.

Thanks, although I thought closing the account would reduce the interest rate payable.

It would depend on the T&Cs of your RS. I am not aware that LBG or TSB RSs have an interest penalty for closing.

I cannot see it in the ts&cs but it seems odd to close early and get the the interest upon closure rather than on the maturity date.

PloughmansLunch

RG2015 said:

Band7 said:

RG2015 said:

AmityNeon said:

Yes. If you withdraw full balances with no intention of further deposits, you can also close the accounts for immediate interest.

Thanks, although I thought closing the account would reduce the interest rate payable.

It would depend on the T&Cs of your RS. I am not aware that LBG or TSB RSs have an interest penalty for closing.

I cannot see it in the ts&cs but it seems odd to close early and get the the interest upon closure rather than on the maturity date.

For LBG savers you can opt for the *wink* *wink* renewal to Easy Saver first, then you'll get interest to date paid straight away with the option of opening another Regular/Club saver in the near future if you want to.

Band7

RG2015 said:

Band7 said:

RG2015 said:

AmityNeon said:

Yes. If you withdraw full balances with no intention of further deposits, you can also close the accounts for immediate interest.

Thanks, although I thought closing the account would reduce the interest rate payable.

It would depend on the T&Cs of your RS. I am not aware that LBG or TSB RSs have an interest penalty for closing.

I cannot see it in the ts&cs but it seems odd to close early and get the the interest upon closure rather than on the maturity date.

Given that interest has been earned daily, up to the day of closure, it would be odd if they did not pay the interest earned.

The providers could have different T&Cs, e.g. not allow closure before maturity, or impose a penalty for early closure, but this would have to be in the T&Cs, and in the case of LBG and TSB RSs, there are currently no such different terms.

Middle_of_the_Road

PloughmansLunch said:

RG2015 said:

Band7 said:

RG2015 said:

AmityNeon said:

Yes. If you withdraw full balances with no intention of further deposits, you can also close the accounts for immediate interest.

Thanks, although I thought closing the account would reduce the interest rate payable.

It would depend on the T&Cs of your RS. I am not aware that LBG or TSB RSs have an interest penalty for closing.

I cannot see it in the ts&cs but it seems odd to close early and get the the interest upon closure rather than on the maturity date.

For LBG savers you can opt for the *wink* *wink* renewal to Easy Saver first, then you'll get interest to date paid straight away with the option of opening another Regular/Club saver in the near future if you want to.

Whilst this is "possible", it's against their terms and conditions. Seems that many have done this to get the recent interest rate increase, but I would not want to risk them closing all of my LBG accounts. Lloyds have been a good choice for opening accounts, solely with the intention of straightaway switching them out. Whilst this is not breaking any t&c, they won't look favourably at it, whilst also going against their rules. 

Eco_Miser

Middle_of_the_Road said:

PloughmansLunch said:

RG2015 said:

Band7 said:

RG2015 said:

AmityNeon said:

Yes. If you withdraw full balances with no intention of further deposits, you can also close the accounts for immediate interest.

Thanks, although I thought closing the account would reduce the interest rate payable.

It would depend on the T&Cs of your RS. I am not aware that LBG or TSB RSs have an interest penalty for closing.

I cannot see it in the ts&cs but it seems odd to close early and get the the interest upon closure rather than on the maturity date.

For LBG savers you can opt for the *wink* *wink* renewal to Easy Saver first, then you'll get interest to date paid straight away with the option of opening another Regular/Club saver in the near future if you want to.

Whilst this is "possible", it's against their terms and conditions. Seems that many have done this to get the recent interest rate increase, but I would not want to risk them closing all of my LBG accounts. Lloyds have been a good choice for opening accounts, solely with the intention of straightaway switching them out. Whilst this is not breaking any t&c, they won't look favourably at it, whilst also going against their rules. 

It's against the t&cs for Lloyds Bank, but not for Halifax.

[Deleted User]

Hi,

look HERE and scroll down.

RG2015

frugalmacdugal said:

Hi,

look HERE and scroll down.

Thank you. This is what I was thinking of, but does this apply to TSB or LBG?

As per MSE (in the link above)

1. You need to deposit a certain amount every month

This is crucial. Regular savers are for putting away specific amounts each month, and a few accounts are strict about this – fail to make the minimum deposit on time and you risk losing the interest or the provider closing your account.

While some regular savers let you skip the odd payment, try to avoid this if possible – you may not be allowed to make it up later, and you'd be sacrificing the interest