Withdrawing from notice saving account

Hello,
I've got a saving account and we had an email a few days ago recently regarding the interest rate reduction, the interest rate paid on my account will be reduced with effect from 16th December 2024. Am I allowed to close the account and withdraw the full amount including the interest earned until now or do I still need to give them 90 days notice ?!
Thank you

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Comments

  • Different notice accounts have varying conditions. If you post which account it is, someone will be able to advice.
  • Different notice accounts have varying conditions. If you post which account it is, someone will be able to advice.
    Vanquis 
    Thank you
  • That's strange if the date is for 16th December. I had an email on 18th November from Vanquis regarding reduction on 90 day notice issue 6 from 3rd March 2025. Check the t's and c's for your particular account, mine states 14 days plus notice period for reduction. Give them a call to clarify.
  • Ayr_Rage
    Ayr_Rage Posts: 2,311 Forumite
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    ToastLady said:
    That's strange if the date is for 16th December. I had an email on 18th November from Vanquis regarding reduction on 90 day notice issue 6 from 3rd March 2025. Check the t's and c's for your particular account, mine states 14 days plus notice period for reduction. Give them a call to clarify.
    90 day Issue 5 and presumable previous have a 30 day notice of change of rate

    In the email there is a global change in terms for all accounts, effective 20th January.

    The devil is in the detail as usual so everyone needs to read the original product information and the new Ts and Cs.

    My, hopefully correct, reading of my personal situation (90 day Issue 5) is that my rate will drop after 30 days (16th December) but if I call any time before 20th January and declare I am unhappy with the changes I can close my account instantly and receive any interest due.
  • Ayr_Rage said:
    ToastLady said:
    That's strange if the date is for 16th December. I had an email on 18th November from Vanquis regarding reduction on 90 day notice issue 6 from 3rd March 2025. Check the t's and c's for your particular account, mine states 14 days plus notice period for reduction. Give them a call to clarify.
    90 day Issue 5 and presumable previous have a 30 day notice of change of rate

    In the email there is a global change in terms for all accounts, effective 20th January.

    The devil is in the detail as usual so everyone needs to read the original product information and the new Ts and Cs.

    My, hopefully correct, reading of my personal situation (90 day Issue 5) is that my rate will drop after 30 days (16th December) but if I call any time before 20th January and declare I am unhappy with the changes I can close my account instantly and receive any interest due.
    Thanks for info, that's possibly why I've never had notice account with them before.
  • slinger2
    slinger2 Posts: 836 Forumite
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    edited 20 November 2024 at 8:17AM
    Vanquis's current general terms say: "If we reduce the interest rate that applies to a notice account then we will tell you about the change at least 14 days plus the account’s notice period before the change takes effect. The additional notice we give you will ensure that you have sufficient time to exercise your rights to close the account (without loss of interest or additional charges) before the reduction in the interest rate comes into effect."

    HOWEVER I do remember that they previously had different terms for notice accounts, less notice of a rate reduction but the ability to close the account early without penalty (AFAIR). Main reason I've only recently opened an account with them.
  • kokolino23
    kokolino23 Posts: 291 Forumite
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    edited 20 November 2024 at 11:13AM
    I've got 90 Day Notice Account Issue 2 and the email from Vanquis came on the 15th of November.
    "We’re reducing the interest rate paid on your account to 4.89% with effect from 16th December 2024, following the reduction in the Bank of England base rate on 7th November 2024. You do not need to do anything, the rate has been automatically applied."
    I've checked the Product Information – 90 Day Notice Account but they don't mention anything about withdrawing conditions if the interest changes. Their General T&C however, says
    "Changing interest rates
    If you have a Fixed Rate Bond account, we can’t change the interest rate during the fixed term period.
    If we reduce the interest rate that applies to a notice account then we will tell you about the change at least
    14 days plus the account’s notice period before the change takes effect. The additional notice we give you will
    ensure that you have sufficient time to exercise your rights to close the account (without loss of interest or
    additional charges) before the reduction in the interest rate comes into effect.

    Your options if you’re not happy with a change we’re making If you’re unhappy with a change we’re making and the change is to your detriment, you can tell us but you may need to close your account. You must tell us before the change comes into force."
    So looks like I can send them an email or call them before the 16th of December and close the account without losing the interest, however the account will close after 90 days and I will earn the initial interest (not 4.89%) during this period.





  • Ayr_Rage
    Ayr_Rage Posts: 2,311 Forumite
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    edited 20 November 2024 at 11:32AM
    @kokolino23 it's not the interest change that you should be concerned about but the changes to the Ts and Cs which allow you to get out before they come into effect.

    My reading of your situation is as follows, it's the same as mine.

    Irrespective of what you do your interest rate falls on 16th December (30 days notice as per current terms)

    You have the opportunity to close your account instantly by calling before the new Ts and Cs become effective on 20th January.

    If you elect to do that before 16/12 you'll get your current rate of interest and if closed between 16/12 and 20/1 the reduced rate after 16/12.

    When the new terms come into effect on 20/1 interest rate changes will only require 14 days notification.

    However, for NOTICE ACCOUNTS you will not be able to terminate early if rates change but the old interest rate will apply until (notice term + 14 days) and you'll have to give the full notice.

    It took me 4 reads to get my head around it, hope I'm correct.

    From the email.

    "If we reduce the interest rate on a notice account, then we’ll tell you about the change at least 14 days plus the account’s full notice period before the change takes effect. This will ensure that we pay you the higher rate of interest for longer (for at least the full notice period of the account after notifying you that we plan to reduce the rate). However, if you’re not happy with the change, we’ll now require you to give us the full notice period of the account prior to withdrawing your funds."



  • kokolino23
    kokolino23 Posts: 291 Forumite
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    edited 22 November 2024 at 1:32AM
    @Ayr_Rage , why on earth they don't write this in simple terms ?! They like to keep it complicated so we can fall into their trap I'd guess. This is the reason why I've asked here, I was hoping someone else is in the same situation.
    It's still not clear to me if I can withdraw before the 16th of Dec and get the interest earned until that day or I have to give them 90 days notice?!
    Their T&C:
    If we reduce the interest rate that applies to a notice account then we will tell you about the change at least 14 days plus the account’s notice period before the change takes effect. The  additional notice we give you will ensure that you have sufficient time to exercise your rights to close the account (without loss of interest or additional charges) before the reduction in the interest rate comes into effect.
    Clearly they didn't tell us at least 14 days plus the account notice about the interest cut, mine is 90 days but they will reduce the interest from 16th of December?!
  • Ayr_Rage
    Ayr_Rage Posts: 2,311 Forumite
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    edited 21 November 2024 at 7:31AM
    This is the important from Old Term in the email.



    It is regarding the change to terms, read the last sentence in the screenshot.

    In the period from when you received the email, 15/11 until the changes are effective 20/1, you can close any notice account without giving the normal notice period.

    We are still under Old Term until 20/1 so they have given the 30 days notice required of interest rate change so that will happen on 16/12.

    You can close you account without notice any time up until 20/1, you will get the appropriate interest until closure, the current rate until 16/12 and the reduced rate thereafter.

    That is what applies right now, don't get confused by the ( notice period + 14 days) references, that is only applicable after 20/1 but it means they have removed the right to close an account without notice if the customer is unhappy with any changes but they don't drop the rate for the notice period + 14 days, normal notice is required to get your money.

    What they should have done is sent two notifications, one detaining the change of interest rate with 30 days notice and a second detailing the changes to the Ts and Cs.




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