1 year fixed savings

mangofish · 12 August 2018 at 8:10AM

Morning everyone, dumb newbie question...

If you open a 1 year fixed rate savings account that gives you 30 days to deposit from opening (or however many days) do they give you the fixed rate for 1 year from the date you open or the date you make the first deposit. Sorry if I'm thicko I can't find this information on the site anywhere x

Malchester · 12 August 2018 at 8:17AM

Hi. You will not get any interest on money that is not actually deposited in an account. Once deposited the money earns interest from the date of deposit. Hope this helps

mangofish · 12 August 2018 at 8:24AM

Hi thanks, I obviously understand I won't earn interest on money when it isn't there.

What I'm asking...

If it's a 1 year fix and I open today (12/08/18) and it says you must deposit within 30 days, if I deposit in 14 days as per the conditions (26/08/18)

When do I then have access to my money again (12/08/19 or 26/08/19?) I obviously also understand if it was effectively only a 50 week fix I'd only get 50 weeks interest!

The reason I want to know is I want to know if I can open a 1 year fix end of March next year, deposit on the 6th April then have the money back before April 5th 2020 for the following tax year's ISA allowance.

The best 1 year non-ISA account beats the best 1 year ISA by some way at the moment! x

Zero_Sum · 12 August 2018 at 8:25AM

The maturity date will be 12 months from day opened (unless its one of these bonds thats about a year that has a fixed maturity date) but if you deposit 30 days later then all that will happen is you'll get 1 months less interest upon maturity.

Malchester · 12 August 2018 at 3:07PM

There are also accounts that can be opened for a more flexible term. Some firms have accounts for 6 months, 18 months, 30 months. Also Masthaven have a fixed term savings account where you can determine your own fixed term -1 month, 2 months etc etc with a relevant interest. I have taken advantage of these for exactly the same reason as you - to have money available each year for ISA investment at beginning of April

NewShadow · 12 August 2018 at 6:06PM

Ah - be careful with some third party brokers like Raisin though.

When you open an account with them - as I did for the £50 intro offer - you have a set amount of time to deposit the cash, then they transfer it to the provider and buy the product. Only then is the term set and it can be a good 10 days post account opening.

colsten · 12 August 2018 at 8:35PM

mangofish wrote: »

The reason I want to know is I want to know if I can open a 1 year fix end of March next year, deposit on the 6th April then have the money back before April 5th 2020 for the following tax year's ISA allowance.

Whilst in theory this could work out, I wouldn't cut it quite that fine if I had a choice, just to allow for any last minute hickups. Losing your ISA wrapper on the money is worse than losing a tiny amount of extra interest for a few days. Best to check with your chosen provider what exactly the withdrawal terms are, and whether they guarantee you have the money in your current account on the day you must have it. There have been many tales of people not being able to get at their money on the expected day for one reason or another (e.g. payout via cheque only, accounts locked, amount greater than daily max etc).

Also, as NewShadow pointed out, there may be added complexity if you go via Raisin.

1 year fixed savings

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