Taking Money Out Early

artyannat

Hi

I'm sure this is a really easy questions for someone to answer... Am I right in thinking that if I open an easy access savings account where interest is paid yearly, and only have the money in the account a few months, that when I close the account I will still get the interest earned over the few months the money was in the account? Or do I forfeit the interest because I am taking the money out early? I am specifically thinking about the Ulster Bank's 4.9% paid yearly.  I have tried looking at the T&Cs but can't see anything about this. 

Qyburn

You won't forfeit interest. If you close the account then outstanding interest for the part year will be credited.

If you just withdraw and leave the account empty then interest will be paid on the normal date, but obviously will only reflect the period you actually had your balance. This might suit better if for some reason you want the interest in next tax year.

artyannat

That's brilliant.  Thanks for your help.