Abbey Fixed Rate Monthly Saver maturity

Milarky

hansi wrote:

My first payment was 24 Oct 2004 and with this month's payment, I have deposited 12 equal payments. Does this now mature on 1st October?

Yes... see post #1 for full description

cgnao

Do not close the account straight away: there is 30 days interest charge for closing it. With £6000 in the account, this is £35 (!!!!!!). So, withdraw the money and close it next month. Then the 30 days interest charge will be zero. Here are the T&Cs.

Specific Terms and Conditions for Fixed Rate Monthly Saver

These specific Terms and Conditions relate to our Fixed Rate Monthly Saver account, which is a limited issue and may be withdrawn without notice. Our Savings Account General Conditions leaflet will also apply to any contract between you and us. Details can be found above.

If your account is a Fixed Rate Monthly Saver account the following conditions also apply:

A fixed rate of interest during a twelve month term will apply where:
> no withdrawals are made, and
> a regular standing order credit of between £20 to £500 is paid into your account every month.

Subject to the above, and unless before the end of the fixed term you tell us otherwise, the account will be transferred to a Monthly Saver account on the 1st of the month of the anniversary of opening the account without notice.

Payment breaks
> No payment breaks are permitted during the first twelve months
> If you don’t credit the account in any given month during the fixed term, the account will be transferred to a Monthly Saver account
> You will receive interest at 7.0% gross p.a. for each of the consecutive months that credits were received, zero interest for the month the payment was missed, with interest equivalent to Monthly Saver for the remainder of the fixed term. Terms and Conditions of the Monthly Saver account will apply.

Eligibility
> To qualify for a Fixed Rate Monthly Saver you must be aged 16 or over. However, this account can be opened by a trustee on behalf of a child
> Accounts can only be opened through branch, over the telephone or via our website
> Only one account per person is allowed.

Joint accounts
> Two or more of you (up to a maximum of four) may hold the account in joint names
> All of you must sign to operate the account unless you all authorise us in writing that we can accept fewer signatures. Any of you may, at a later date revoke this authority in writing. Minimum/maximum deposit
> The minimum initial deposit is £20 up to a maximum of £500. Thereafter, you must deposit between £20 and £500 each month by standing order. If you credit less than £20 or more than £500 in any given month, you will receive zero interest for that month and the account will automatically transfer into a Monthly Saver account.

Adding to your account
> In addition to your initial opening balance, you agree to set up a standing order for a fixed sum from between £20 and £500 each month. Once you have chosen a sum to credit to your account this cannot be changed
> A standing order must be set up to leave your bank account on or before 21st of each month. We will provide you with a form to authorise your bank to make your regular payments. This must be completed and forwarded to your bank
> Fixed Monthly Saver interest will only be paid where all payments, except the initial deposit, have been made by standing order
> Wages and salary mandates are not allowed to be paid directly into your account
> When the account is opened you will also be issued with a passbook. Withdrawing from your account
> To achieve the fixed rate no withdrawals are permitted during the first twelve months
> If you choose to make a withdrawal during this period, the account will be transferred to a Monthly Saver account
> You will receive interest at 7.0% gross p.a. for each of the consecutive months that no withdrawals were made, zero interest for the month of withdrawal, with the interest equivalent to Monthly Saver interest rate for the remainder of the fixed term. Terms and conditions of the Monthly Saver account will apply.

Closing your account
> You may close your account at any time subject to a 30 day interest charge. This will be calculated and deducted at the date your account is closed
> No charge will be applied if closure of your account is required by your personal representative in the event of your death
> Closures are only allowed via telephone or by writing to us.

Interest
> Interest is calculated daily and credited to your account annually on the 1st of the month of the anniversary of the account opening
> Interest will be paid gross to eligible non-taxpayers who register with us otherwise it will be paid net of income tax at the prescribed rate.

Speculator

Speculator wrote:

Just to warn that the first batch of Abbey Fixed Rate Regular Monthly Savers paying 7.00% will mature soon.

It will mature on the "1st of the month of the anniversary of opening"

Therefore, if it was opened on the 16th of September 2004, it should mature on the 1st of September 2005.

On maturity, Abbey will automatically transfer it into a Monthly Saver account paying only 5%. A/c no. stays the same so it wouldn't affect existing Standing Orders.

Personally, I'll be closing it at the earliest opportunity. I can get a much better rate and deal with the Derbyshire Regular.

Here's what the Abbey website says about the Monthly Saver...

Just closed my account on the 2nd of September ( 1 day after maturity) with no problems whatsoever.

Milarky

On Monday (tomorrow) I intend to use the 'call me back' facility to at least get someone from Abbey to speak to me about moving the balance to the Abbey e Saver I opened with a £1 - and from there I can move it on myself.. mine comes out on the 1st October, BTW.

(Where did Abbey transfer your money to, Speculator?)

papaya_2

cgnao wrote:

Do not close the account straight away: there is 30 days interest charge for closing it. With £6000 in the account, this is £35 (!!!!!!). So, withdraw the money and close it next month. Then the 30 days interest charge will be zero. Here are the T&Cs.

Specific Terms and Conditions for Fixed Rate Monthly Saver

Closing your account
> You may close your account at any time subject to a 30 day interest charge. This will be calculated and deducted at the date your account is closed

I am informed by Abbey that this loss of interest applies only if closed during the first year. Given their general level of incompetence, you may prefer to get this in writing!

Speculator

Milarky wrote:

(Where did Abbey transfer your money to, Speculator?)

I went to a local branch & asked for a cheque made payable to myself. The money is earmarked for our newly opened Cheshire Regular 8% and Leeds Regular Saver 7% a/cs.

Milarky

papaya wrote:

I am informed by Abbey that this loss of interest applies only if closed during the first year. Given their general level of incompetence, you may prefer to get this in writing!

I Think this is accurate. The account reverts to a Monthly saver if no action is taken on maturity. Thus any withdrawal (or closure) at that stage merely results in loss of bonus interest - at the rate of 50-or-so pennies per day, in other words..

Up to 4.75% gross p.a./AER

Our Monthly Saver currently offers you 4.75% gross p.a./AER as long as you save at least £20 a month and don’t touch it. If you pay less money in, or dip into your savings, the rate drops to 0.75% gross p.a./AER for that month only.

papaya_2

In fact 4.75% gross (3.8% net) is paid on closure, but if you withdraw the lower rate then applies (.75/.60).

Just closed mine - and Abbey got it right this time.

deemy2004

Closed ours - No problem i.e.full interest credited . Got a cheque from the branch.