Interest when savings mature at weekend

fabsaver

I will have to be more mindful of this in future when opening a fixed term account. I have one with First Save which is due to mature on a Friday. Their withdrawal terms means that the money will leave the maturing account on Friday but not arrive in my bank until the following Monday, losing interest for 3 days 

EthicsGradient

aroominyork said:

When a fixed term savings bond matures at a weekend (or during a long weekend) so the repayment is delayed until the next working day, is an extra 1/2/3/4 days' interest added, or does the bank/savings institution keep the extra interest and put it towards their staff Xmas party? (OH and I each put £10k into Nationwide 5.5% 18 month bond on Tuesday. Roll forward 18 months...Thursday 25 December 2025.)

Getting back to the question - check with the provider. For instance, Metro Bank says their maturity dates are extended, with interest, to fall on a working day:

 If the Fixed Term Savings account end date falls on a weekend or bank holiday, your account will mature on the next working day and the balance and any interest will be paid the next working day from this date.

Fixed_Term_Savings_ IIS 207 PR001106 01.24 (metrobankonline.co.uk)

aroominyork

That Metro quote doesn't say they pay an extra day's interest. Anyway, this thread was more intended as a conversation topic about general practice. I checked Nationwide's Ts & Cs this morning and on maturity it transmogrifies into a regular savings account.

hpas251

aroominyork said:

nottsphil said:

Hoenir said:

aroominyork said:

When a fixed term savings bond matures at a weekend (or during a long weekend) so the repayment is delayed until the next working day, is an extra 1/2/3/4 days' interest added, or does the bank/savings institution keep the extra interest and put it towards their staff Xmas party? (OH and I each put £10k into Nationwide 5.5% 18 month bond on Tuesday. Roll forward 18 months...Thursday 25 December 2025.)

The bank is unable to lend the money out so won't be earning anything on the deposit either. 

In which case they shouldn't mind returning the capital to the Investor promptly. Faster payments etc do actually work at weekends and on bank holidays!

Ah... well, maybe they do. I just assumed that bank holiday means a holiday for the bank.

I attempted to transfer money from my Nationwide current account to my Nationwide regular savers and also from my Skipton savings account to a Skipton regular saver on 1st April this year. This was Easter Monday, which is technically a normal working day in Scotland, and a bank holiday in the rest of the UK (although Scottish banks have chosen not to open on Easter Monday since 1996). Both these institutions are headquartered in England, but do have Scottish branches. The Nationwide transfers went through instantly while the Skipton transfer was accepted, but I was notified it would be processed on the Tuesday due to the bank holiday. So, the rules surrounding non-working days seem to vary from institution to institution.

EthicsGradient

aroominyork said:

That Metro quote doesn't say they pay an extra day's interest. Anyway, this thread was more intended as a conversation topic about general practice. I checked Nationwide's Ts & Cs this morning and on maturity it transmogrifies into a regular savings account.

Metro says the maturity date is moved forward to a working day if necessary, so, yes, they pay an extra day (or two) interest if it otherwise would have been a Sunday (or Saturday). That is the only example we have so far (turning into a savings account doesn't tell us anything - this is about the day that would happen on), so if you're interested in general practice, then so far it's: 100% give you the extra day's interest to get to a working day. I suspect that some will not give it to you, but we have to start with what we can find.

allegro120

aroominyork said:

When a fixed term savings bond matures at a weekend (or during a long weekend) so the repayment is delayed until the next working day, is an extra 1/2/3/4 days' interest added, or does the bank/savings institution keep the extra interest and put it towards their staff Xmas party? (OH and I each put £10k into Nationwide 5.5% 18 month bond on Tuesday. Roll forward 18 months...Thursday 25 December 2025.)

The interest will be paid on the day your account closes.  It doesn't matter whether it is a weekend or not.

badger09

aroominyork said:

That Metro quote doesn't say they pay an extra day's interest. Anyway, this thread was more intended as a conversation topic about general practice. I checked Nationwide's Ts & Cs this morning and on maturity it transmogrifies into a regular an instant access savings account

Fixed that for you.  ‘Regular savings account’ has a specific meaning😉

MACKEM99

hpas251 said:

aroominyork said:

nottsphil said:

Hoenir said:

aroominyork said:

When a fixed term savings bond matures at a weekend (or during a long weekend) so the repayment is delayed until the next working day, is an extra 1/2/3/4 days' interest added, or does the bank/savings institution keep the extra interest and put it towards their staff Xmas party? (OH and I each put £10k into Nationwide 5.5% 18 month bond on Tuesday. Roll forward 18 months...Thursday 25 December 2025.)

The bank is unable to lend the money out so won't be earning anything on the deposit either. 

In which case they shouldn't mind returning the capital to the Investor promptly. Faster payments etc do actually work at weekends and on bank holidays!

Ah... well, maybe they do. I just assumed that bank holiday means a holiday for the bank.

I attempted to transfer money from my Nationwide current account to my Nationwide regular savers and also from my Skipton savings account to a Skipton regular saver on 1st April this year. This was Easter Monday, which is technically a normal working day in Scotland, and a bank holiday in the rest of the UK (although Scottish banks have chosen not to open on Easter Monday since 1996). Both these institutions are headquartered in England, but do have Scottish branches. The Nationwide transfers went through instantly while the Skipton transfer was accepted, but I was notified it would be processed on the Tuesday due to the bank holiday. So, the rules surrounding non-working days seem to vary from institution to institution.

Skipton have told me before they are  not a bank so it's next working day.  When I commented to them neither are nationwide but their transfers can be done on bank holidays or weekends they said they cannot comment on that!

EthicsGradient

However, Nationwide does have its own sort codes (07-00 to 07-49), so for these purposes it may count as a "bank". It does, after all, offer full-service current accounts.