does if affect credit rating if you shut down accounts?

hostertlady

sorry if i have posted this on the wrong board but i want to close down a monthly saver account with LTSB because the interest rate has now changed and is rubbish, i want to stick any spare cash i have into my ISA, i was wondering if it does affect any credit rating??

YorkshireBoy

It won't affect your credit rating at all, but why close the account down? The current rate advertised is for new customers...you'll continue to earn 8% on your account.

Aegis

I was under the impression that the Lloyds monthly saver was a fixed rate until maturity?

[Deleted User]

As far as I was aware it wouldn't affect your credit rating however it may affect your internal credit rating with the bank (no one apart from the bank accesses this).

ShelfStacker_3

As savings accounts aren't credit products (i.e. there's no possibility of you borrowing any money via them) they aren't reported to credit reference agencies. As others have said though, it may make a difference to your internal ranking depending on which bank you're with.

hostertlady

when i opened the account, October 2006, the rate was 8%. the other day i went into the bank and was going to 'up' my monthly payment and the lad behind the counter said that the rates have dropped for the monthly saver and i told him that i opened it in 2006 and he showed me a chart with the interest rates on and it had gone down to 3.something percent, so i didnt change my payment and decided to up my ISA, did he make a mistake then?? and is it 8% for life on this one??

edit- i still have the original t&c paperwork and looking through it:
[we display the current rates of interest paid on Monthly Saver accounts in our UK branches}

!! your monthly saver will end on the second anniversary of account opening and we will convert your MS to a guaranteed tracker}

Biggles

hostertlady wrote: »

sorry if i have posted this on the wrong board but i want to close down a monthly saver account with LTSB because the interest rate has now changed and is rubbish, i want to stick any spare cash i have into my ISA, i was wondering if it does affect any credit rating??

As YorksBoy and Aegis say, the LTSB monthly saver is a fixed rate, it doesn't go down (or up, for that matter).

The rate of their current offering is certainly lower than your existing account, but that won't affect the interest you're earning.

YorkshireBoy

hostertlady wrote: »

...the lad behind the counter said...

Why am I not surprised by that? :rolleyes:

...did he make a mistake then?? and is it 8% for life on this one??

Yes, he did. I have the same account, but opened a couple of months after yours.

hostertlady

your monthly saver will end on the second anniversary of account opening and we will convert your MS to a guaranteed tracker

what about this bit then?

YorkshireBoy

They'll sweep the closing balance into a lower interest paying account (in the hope that inertia will mean you leave it there).

You just move it on to a better paying account (somewhere else if necessary).

hostertlady

YorkshireBoy wrote: »

They'll sweep the closing balance into a lower interest paying account (in the hope that inertia will mean you leave it there).

You just move it on to a better paying account (somewhere else if necessary).

too right i will x