Closing regular savers and interest

george4064 · 15 September 2018 at 9:36PM

I have a variety of Regular Savers with various banks and may well need to withdraw funds in the near future to use towards a house deposit. My concern is that I want to ensure I still earn interest for the periods the cash were actually in the account.

I have had a read through many of their T&Cs and can't see anywhere whether interest will be credited if I withdraw all funds and close the accounts.

Accounts I have:

1. TSB Monthly Saver (Instant access to your money with no withdrawal charges.)

2. Nationwide: Flex Regular Saver 2 (can make withdrawals, and seems that interest is paid after 12 months).

3. Halifax Regular Saver (no withdrawals)

4. First Direct Regular Saver (interest calculated daily and paid 12 months after account opened. No partial withdrawals allowed and account closure means funds will receive standard variable rate).

Could anyone shed any light on this please?

In addition, is there any particular things I need to do to ensure I earn the interest on the accounts? (i.e. withdraw all funds except for £1 to retain the account to earn the interest at the maturity date etc...)

Also, I have found a few details on their webpages but I find many of them vague and don't want to misunderstand any of them!

Thanks in advance.

Ed-1 · 15 September 2018 at 9:50PM

george4064 wrote: »

I have a variety of Regular Savers with various banks and may well need to withdraw funds in the near future to use towards a house deposit. My concern is that I want to ensure I still earn interest for the periods the cash were actually in the account.

I have had a read through many of their T&Cs and can't see anywhere whether interest will be credited if I withdraw all funds and close the accounts.

Accounts I have:

1. TSB Monthly Saver (Instant access to your money with no withdrawal charges.)

2. Nationwide: Flex Regular Saver 2 (can make withdrawals, and seems that interest is paid after 12 months).

3. Halifax Regular Saver (no withdrawals)

4. First Direct Regular Saver (interest calculated daily and paid 12 months after account opened. No partial withdrawals allowed and account closure means funds will receive standard variable rate).

Could anyone shed any light on this please?

In addition, is there any particular things I need to do to ensure I earn the interest on the accounts? (i.e. withdraw all funds except for £1 to retain the account to earn the interest at the maturity date etc...)

Also, I have found a few details on their webpages but I find many of them vague and don't want to misunderstand any of them!

Thanks in advance.

Interest is paid on closure for all of them. First Direct is the only one that pays a lesser rate if you close early.

YorkshireBoy · 15 September 2018 at 9:52PM

Having read all the T&Cs, I'm of the opinion that with the exception of FD, all accounts can be closed with interest earned paid up at closure at the full rate.

In what way did you think they were "vague"?

george4064 · 15 September 2018 at 9:53PM

Ed-1 wrote: »

Interest is paid on closure for all of them. First Direct is the only one that pays a lesser rate if you close early.

Thanks for the quick reply, so to confirm say if I opened the account on 1st January 2018 and deposited the max £250 a month. Then closed the account & withdrew all funds on 1st October, I would receive interest on the daily balances up to 1st October?

george4064 · 15 September 2018 at 9:55PM

YorkshireBoy wrote: »

Having read all the T&Cs, I'm of the opinion that with the exception of FD, all accounts can be closed with interest earned paid up at closure at the full rate.

In what way did you think they were "vague"?

Might just me being worried that I am misunderstanding their T&Cs.

Thanks for looking into this.

Ed-1 · 15 September 2018 at 9:58PM

george4064 wrote: »

Thanks for the quick reply, so to confirm say if I opened the account on 1st January 2018 and deposited the max £250 a month. Then closed the account & withdrew all funds on 1st October, I would receive interest on the daily balances up to 1st October?

Yes.......

YorkshireBoy · 15 September 2018 at 9:59PM

george4064 wrote: »

Might just me being worried that I am misunderstanding their T&Cs.

Thanks for looking into this.

I think you're looking for something that isn't there*. eg FD specifically tell you what will happen to the interest rate, whereas all the others don't. They simply say they'll pay interest up at closure. That interest rate must be the account rate, ie 2.5%, because no other rate is quoted.

* Which is a good thing! In short, as with all these T&Cs, its just as important to see what they don't say as it is to find out what they do say.

Closing regular savers and interest

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