Fixed rate saving accounts with penalties

knittingnanny1102

Do we know of any fixed rate accounts which could offer a penalty on withdrawal or closure.  I am looking for a house and may need additional funds if the perfect one came up but more likely would like to still make the most of interest rates while they are around 

jaypers

First Direct does one with a £100 penalty for withdrawal. Only 4.45% though so you’re likely better with Easy Access……no penalties and higher interest. 

refluxer

Fixed rate ISAs allow withdrawals with a penalty (eg. 90 days interest for a 1 year fix) but non-ISA fixed rate accounts that allow closure or withdrawals before maturity are rare - the majority don't. 

Halifax is another example of a bank who does (closure only - no withdrawals), but the low rate (4.40% for a year) and hefty penalty (90 days-worth of interest) means that you might be better off in a higher-paying easy access account, as suggested above.

fonesaver

Halifax allow closure of their fixed term accounts with a penalty of 90 days interest for the 1 year fix.

Frequentlyhere

Alternatively you could consider a 30 or 90 day notice account (current best buy investec 5.25% 90d).

Though to be honest, for the small difference it makes in rate you could also just go easy access.

masonic

Access with a penalty tends to be offered by the big banks, but at non-competitive rates (due to your ability to access the money). I would think a notice account would give you the best compromise between rate and access in this scenario. Limited access accounts (where you can make up to x withdrawals penalty free) are also a good option as you would only need to make one withdrawal.

Descrabled

LBG Lloyds, Halifax, and BOS.

HSBC stable including First Direct and M&S.

NatWest and RBS

All provide early access but at a cost of 90 days interest penalty.

Barclays allows early access on 3 occasions for 10% of the reducing capital fee free.