Does a "number of withdrawal" limit include withdrawing everything?

mark_cycling00

Hi, just want to check something before I apply 

For a savings account like chip where there's a limit on number of withdrawals, are you allowed to withdraw everything without losing the interest rate?

If that was your only withdrawal?

I couldn't find the answer on their website 

Many thanks 

friolento

It usually tells you in the product’s T&Cs. If it doesn’t, it’s best to ask the provider. There’s no general rule that applies to all accounts 

grumpy_codger

Normally they say something like "including a closure", but this is important only if there are some penalties, like, say, "3 months worth of interest". 
In case of Chip I see "After 3 withdrawals within a 12 month period the rate will revert to...", so I don't see any problem at all. It's up to you either to accept the lower rate or to withdraw the balance (or to close the account alltogether).

eskbanker

I can't think of any circumstances where withdrawing everything would be treated differently from a partial withdrawal?

mark_cycling00

Could I just open it and then withdraw everything a few months later and get the full rate?

Just checking that withdrawing everything counts as one of those 3 transactions 

Many thanks 

mark_cycling00

eskbanker said:

I can't think of any circumstances where withdrawing everything would be treated differently from a partial withdrawal?

That's the answer I need. Thanks 

grumpy_codger

mark_cycling00 said:

Could I just open it and then withdraw everything a few months later and get the full rate?

Yes, if the rate drops this affects only the future interest and doesn't work retrospectively.

Just checking that withdrawing everything counts as one of those 3 transactions 

I think it does if you don't close the account and deposit again later.

DRS1

Don't some accounts have a minimum balance?  So if you withdraw everything isn't that the same as closing the account?  So you could not come along later and make a new deposit.

mark_cycling00

That's ok too. It's just going to be a temp saving account whist I work out how much I can lock away for longer..

jaypers

Chip or Atom it wouldn’t really matter anyway if you were withdrawing everything as they reduce the rate rather than restrict/stop further withdrawals. Think some others allow ‘closure’ but T&Cs vary.