Beehive Regular Saver - Unable To Close Account

manchesterlady

I’ve just tried to close my Beehive Fixed Rate Regular Saver account, but was unable to do so, or withdraw any of my funds, as apparently the Ts and Cs do not allow this, so I am stuck with this account until the term ends. 

Obviously I was well aware that I wouldn’t get the interest as I was closing early, but - on a web chat with a Beehive adviser - I was told that only if I could provide documents to prove that I was in financial hardship would they release my money, once a manager had made an individual judgment. 

I have never come across this before with any savings account I’ve ever had. Anyone else? And does anyone have any advice? Surely a savings provider can’t just keep hold of your money, if you’ve requested to close an account ?

Thank you in advance for any words of wisdom!

grumbler

I think this a norm for many regular savers, not only this one - especially if the interest rate is fixed, not varialbe. Hardly a surprise if the rate is fixed - in this respect they are very close to fixed-rate savings accounts that generally don't allow early closure.

Kim_13

Providers can and sometimes do stipulate no withdrawals or closure until the end of the term. Beehive are one such provider. The rate is also fixed, so in a sense you both take a risk - Beehive that rates don’t fall off of a cliff because they’d still be committed to paying you the rate you signed up to until the end of the term and you that rates don’t fall such that you’d want to move the money. At least they will consider it if a customer needs the money - similar providers may not. If circumstances were compelling and they still refused, I’d imagine contacting your MP stating the provider was showing a lack of understanding during a cost of living crisis and in the face of unforeseen circumstances might get some movement. 

In general if you want a fixed rate account but may need access to the money you should opt for an ISA - providers legally have to provide access to the money, though a penalty may apply as set out in the product terms. Some ISAs can only be closed early but others allow a partial withdrawal which would mean you could limit the penalty payable and only pay it on the sum actually required.

Currently Principality Building Society and Halifax are among those offering Regular Savers where early closure is permitted.

AmityNeon

No closure/withdrawals is more of an exception rather than the rule, at least in the current crop of regular savers offering rates above the top EA rate.

boingy

It's becoming more common for regular savers and, yes, they can do whatever they want if it's in the T&Cs as long as it's legal. The only thing you can do is stop paying into it and wait for the term to end. 

It's the same with many fixed-rate accounts too. A small number let you close early and pay an interest penalty but most lock you in for the full term unless you can prove hardship or unless you die. The latter scenario is not usually an ideal strategy...

molerat

It is on the product front page so not hidden away

You won't be able to withdraw any money you've saved into your regular savers account until the term ends so you need to be sure you won’t need access to it, however, keep it in there without any withdrawals and you'll receive a lump sum of interest.

surreysaver

From my saved PDF of the T&Cs

Speculator

Have quite a few fixed rate regular savers that allow withdrawals and closures. Wouldn't open one that do not allow withdrawals unless the rate is 7% or above.

boingy

Speculator said:

Have quite a few fixed rate regular savers that allow withdrawals and closures. Wouldn't open one that do not allow withdrawals unless the rate is 7% or above.

I've had a few that didn't allow withdrawals or closure but I think all my current ones are OK. The First Direct 7% one doesn't allow withdrawals but you can close it early and get the interest earned so far (and I think you could then open another one almost immediately!)

simonsmithsays

Nottingham BS (owner of Beehive) have had these rules in for all the RS I've had with them for 10+ years.

Lots of others have these restrictions too.

They may yield a little for very outstanding circumstances but always read the Terms 

flaneurs_lobster

boingy said:

The First Direct 7% one doesn't allow withdrawals but you can close it early and get the interest earned so far (and I think you could then open another one almost immediately!)

Sort of, you'll get interest earned at (currently) 2%.

• If you close your account before the end of the 12 month period, we'll only pay you interest at our standard Savings Account variable rate. You won’t be able to make partial withdrawals.