Santander easy access 12 month account

annf

Hi, I have done something silly and accidentally closed my account with one week to go before one year anniversary (bit more to this story as when I realised my mistake I called santander and they told me account was still open but I have just logged on and it’s been closed) I have been searching everywhere to try and find what penalty for early closure is and can’t see anything relating to this. When I opened account just under (!) a year ago the interest rate was 5.2% - think it’s dropped since but does anyone know what penalty is? I’m going to have a sleepless night until I can call at 8 am tomorrow….any information would be appreciated - thank you 

Middle_of_the_Road

It won't have any impact due to early closure. You will receive any interest due at the initial 5.2% rate, and then the current rate, which will be calculated upon closure. It normally takes a couple of days for the money to arrive in the account you specified.

annf

Thank you  for your response - so the 12 months of the issue 3 doesn’t mean it has to stay open for full year to earn interest - that would be great - can’t believe this information isn’t easily accessible online - thank you again.

refluxer

annf said:

Thank you  for your response - so the 12 months of the issue 3 doesn’t mean it has to stay open for full year to earn interest - that would be great - can’t believe this information isn’t easily accessible online - thank you again.

Yes, the 12 months just referred to the maximum length of time you could originally hold the account, but you are free to close it whenever you like. I think it was actually extended for an additional 6 months. 

As mentioned above, you'll get credited with the appropriate amount of interest earned up until the day the account was closed and this can take a day or two to show in whichever account you nominated for the payment.

allegro120

annf said:

Thank you  for your response - so the 12 months of the issue 3 doesn’t mean it has to stay open for full year to earn interest - that would be great - can’t believe this information isn’t easily accessible online - thank you again.

It is normal when you close the account you get your accrued interest paid.  Some accounts have penalties on withdrawals, but that is always clearly communicated in 'key features' or t&c.  Santander's issue 3 doesn't have any penalties on closure.

annf

Thank you all for taking time to respond   - can now stop panicking and will give them a call in morning. 

refluxer

annf said:

Thank you all for taking time to respond   - can now stop panicking and will give them a call in morning. 

Why do you need to call them ?

annf

I want to call because on Sunday when I initially panicked  I was reassured by Santander  that account would stay open and there would be notes to that effect put on system - now it’s closed so contradicting what they told me would happen. So really just want to double check closed and funds on their way to me but I did get some sleep last night thanks to advise received here yesterday.
Thanks again!  

refluxer

annf said:

I want to call because on Sunday when I initially panicked  I was reassured by Santander  that account would stay open and there would be notes to that effect put on system - now it’s closed so contradicting what they told me would happen. So really just want to double check closed and funds on their way to me but I did get some sleep last night thanks to advise received here yesterday.
Thanks again!  

If your account was closed yesterday, I would expect that the funds should show up in your nominated account by today. Santander are one of the better banks for truly instant payments, although how quickly the transfer progresses may depend on the processes your receiving bank uses, of course (not all credit instantly, like Santander).

It's worth noting that there are dozens of easy access accounts now paying a fair bit more than the 4.20% this account offers so you could always use this as an excuse to find a better alternative and get more from your savings while rates are still relatively high. I moved my savings from this account when the rate dropped in May this year and only left £1 in it to maintain a presence with Santander. The rate of this account is actually due to drop again (to 4%) in a few weeks time (1st October).