Advice pls - when in month to make withdrawal?

MrsTight

Good evening,

I have a large amount in an A&L Direct Saver a/c and want to spilt this into two or three separate accounts , as per the £35,000 guideline. So I need to make a withdrawl from this a/c.

I have the usual 'no interest in the month a withdrawal is made' penalty on A&L a/c - is there a 'best' time in the month to make that withdrawal - to minimise interest loss?

Excuse me for being dim, it's been a long day...

CS

KTF

The first of the month (assuming you are going to clear it out completely) or anytime in July when there is no penalty if you only want to take part of it out.

If you only want to make a partial withdrawal then I would wait till July.

MrsTight

Thanks - I don't actually have teh July waiver - mine is an older a/c - I did check though!

It's a partial withdrawal of c £30k

Why would the 1st of the month be better?

Thanks
CS

KTF

You lose interest on the month of the withdrawal and interest is paid on the first of the month.

So you wait till the interest is paid then take the whole lot out, stick it in a holding (or other instant access account) then move it back at the end of the month. That way you still get interest on the amount that remains after the withdrawal.

I have just moved the amount I had in my Direct Saver over to Kaupthing Edge as they pay the same 6.5% but its instant access. I dont plan to move it back to A&L.

MrsTight

Thank you for explaining re the 1st - makes sense.

In fact I have just opened a Kaupthing Edge a/c so I can move the £30k there - on your advice I will move the whole lot over on 1st May and any remainder back

Many thanks for your help
CS