Switching banks

Smiley2

What happens to a Fixed-term savings account when one switches banks? Does one lose the interest earned?

eskbanker

The Current Account Switching Service doesn't do anything with savings accounts, or even if you meant switching in a looser sense, again this wouldn't include doing anything with a fixed term product to which you (and the bank) are both committed to maturity....

lr1277

Depends on the T's and C's of the savings accounts. Some accounts state the interest and principal have to be paid into an account with the same organisation. Other accounts may allow you to have the money paid into a nominated external account. If you do switch your current account but the savings money can only be paid into an account at the same organisation, I don't know what might happen.

The usual answer is to create a 2nd current account at the same bank, put in some SO's and DD's as required by the switch offer then switch out this new account.

PRAISETHESUN

As highlighted above, switching itself doesn't touch anything other than the specific current account you nominate at the start of the CASS process. Your savings won't be directly affected.

Depending on the terms of your account however you might find that the bank requires you to maintain a current account either to actually keep the savings account, or for withdrawals, meaning practically you might have issues. Account closure (regardless if you or the bank initiate closure) could come with interest penalties. If you let us know which account you have we might be able to help further.

Smiley2

Thank you all for your comments. I have a current account with HSBC as well as a Regular Fixed term Saver account into which I transfer £100 / month from my Current account.

Hoenir

Eligibility:

• Have an HSBC current account or savings account (excluding an ISA, Regular Savings Account or Appointee/Executor Account) which you must maintain for the duration of the fixed term