Beehive Money 2 year fixed

Daz2009

Looking at this account....it says interest is paid annually but also that you can't make any withdrawals.
Does that include the 1st years interest ?

refluxer

It's obviously normal practice to not be able to withdraw from a fixed rate savings account but whether you can have the interest paid away is a separate issue and will depend on whether they offer that option or not - some do and some don't. It should tell your in the account T&C's.

refluxer

"Interest is paid annually and straight into your account"

Looks like you're not able to have the interest paid away with that one so you'll have to choose a different bank if you want that option.

Daz2009

refluxer said:

"Interest is paid annually and straight into your account"

Looks like you're not able to have the interest paid away with that one so you'll have to choose a different bank if you want that option.

Yes that's what I was referring to and reading the terms again it says you can't withdraw it til the end of the term although it's paid annually.

refluxer

It's the better option for someone simply wanting the best return on their money (especially with rates predicted to fall), as the interest will subsequently earn a decent rate within the account.

Those wanting the interest as regular income would be better off choosing an alternative account that has the option for the interest to be paid away monthly.

Daz2009

refluxer said:

It's the better option for someone simply wanting the best return on their money (especially with rates predicted to fall), as the interest will subsequently earn a decent rate within the account.

Those wanting the interest as regular income would be better off choosing an alternative account that has the option for the interest to be paid away monthly.

Interest paid yearly was what I want,this account does that...but you can't access it !

refluxer

Daz2009 said:

refluxer said:

It's the better option for someone simply wanting the best return on their money (especially with rates predicted to fall), as the interest will subsequently earn a decent rate within the account.

Those wanting the interest as regular income would be better off choosing an alternative account that has the option for the interest to be paid away monthly.

Interest paid yearly was what I want,this account does that...but you can't access it !

I would keep looking as I'm sure there are banks who allow you to choose between annually/monthly and paid in/paid out. (Atom ?)

The Moneyfacts comparison site allows you to filter accounts that pay interest annually (if you do a full search) but not the pay in/out option, unfortunately.

Daz2009

refluxer said:

Daz2009 said:

refluxer said:

It's the better option for someone simply wanting the best return on their money (especially with rates predicted to fall), as the interest will subsequently earn a decent rate within the account.

Those wanting the interest as regular income would be better off choosing an alternative account that has the option for the interest to be paid away monthly.

Interest paid yearly was what I want,this account does that...but you can't access it !

I would keep looking as I'm sure there are banks who allow you to choose between annually/monthly and paid in/paid out. (Atom ?)

The Moneyfacts comparison site allows you to filter accounts that pay interest annually (if you do a full search) but not the pay in/out option, unfortunately.

Close Brothers have the next best interest rate and pay away so I've opened an account with them

slinger2

Daz2009 said:

refluxer said:

It's the better option for someone simply wanting the best return on their money (especially with rates predicted to fall), as the interest will subsequently earn a decent rate within the account.

Those wanting the interest as regular income would be better off choosing an alternative account that has the option for the interest to be paid away monthly.

Interest paid yearly was what I want,this account does that...but you can't access it !

I assume that it could make a difference to the tax situation. Even though you can't access it, it presumably counts towards that tax year's interest allowance (£1k for basic rate taxpayers)

Daz2009

slinger2 said:

Daz2009 said:

refluxer said:

It's the better option for someone simply wanting the best return on their money (especially with rates predicted to fall), as the interest will subsequently earn a decent rate within the account.

Those wanting the interest as regular income would be better off choosing an alternative account that has the option for the interest to be paid away monthly.

Interest paid yearly was what I want,this account does that...but you can't access it !

I assume that it could make a difference to the tax situation. Even though you can't access it, it presumably counts towards that tax year's interest allowance (£1k for basic rate taxpayers)

That can be the only conclusion yes