New Abbey 7% account

hansi

I just read through the conditions and it says if you close an account, you lose 30 days interest. Does this apply after the first 12 months or only if you close it before you have paid 12 regular payments?

Speculator

According to their website...

If you miss a payment or if you withdraw from your account, you will receive zero interest for that month. The account will then become a Monthly Saver

So I guess the best time to withdraw from it will be the 1st of the month.

Fatboy_NSS

This is only during the first 12 months (ie while it's a Fixed Rate monthly Saver account) that you lose the whole month's interest if you make a withdrawal.

After 12 months it becomes a regular Monthly Saver account which pays a basic rate of around 1% plus a bonus of 4%. On this account you lose the bonus for a month if you make any withdrawals but you still get the basic rate that month.

Speculator

You won't lose a 'whole months interest' if you close it on the  1st of the month of the anniversary of opening the Fixed Rate Monthly Saver.

You will lose just 3.75% for one day.

deemy2004

This Account is confusing.

It says it matures on the 1st of the anniversary month, but the interest is added on the 1st of the following month !

so what happens to those 30 days in between ?

Speculator

Where does it say its added on the 1st of the following month?

From Abbey website

Interest is calculated monthly and paid once a year on the 1st of the month that the account was opened in, directly into the account

So if you opened the account on the 20/10/04, interest will be added on the 01/10/05.

deemy2004

We'll I be b***@@erd

Theyve changed the wording !

When I opened the Abbey Saver 4 weeks ago the terms I got are as follows, I sent them an email asking them to explain but got no reply :

Interest
> Interest is calculated daily and credited to your account annually on the 1st month of the anniversary of the
account opening

Thus implies AFTER the 12 months are up and thus by implication a loss of 30days interest, as you mention its credited on the 1st day of the anniversery month and NOT the 1st month of anniversary !

Guess my email worked

Reestit_Mutton

I think everyone may be getting their knickers in a twist over nothing...

MANY accounts only add interest once a year. However, whenever you close your account, interest since the last credit to the account will be calculated up to the day that you close it and added in and NO amount of shenanigans will get around that requirement unless it's accounted for in the headline rate.

The ONLY thing that you have to watch for is that an interest penalty is not applied when you close your account.

RM