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  • FIRST POST
    • george4064
    • By george4064 15th Sep 18, 9:36 PM
    • 1,020Posts
    • 1,073Thanks
    george4064
    Closing regular savers and interest
    • #1
    • 15th Sep 18, 9:36 PM
    Closing regular savers and interest 15th Sep 18 at 9:36 PM
    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.
    Last edited by george4064; 15-09-2018 at 9:39 PM.
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £12,427.51/£12,000 (104%)
    Save £12k in 2018 - #004 £4,457.62/£12,000 (37%)
Page 1
    • Ed-1
    • By Ed-1 15th Sep 18, 9:50 PM
    • 2,349 Posts
    • 1,230 Thanks
    Ed-1
    • #2
    • 15th Sep 18, 9:50 PM
    • #2
    • 15th Sep 18, 9:50 PM
    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.
    Originally posted by george4064
    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
    • By YorkshireBoy 15th Sep 18, 9:52 PM
    • 30,219 Posts
    • 18,113 Thanks
    YorkshireBoy
    • #3
    • 15th Sep 18, 9:52 PM
    • #3
    • 15th Sep 18, 9:52 PM
    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
    • By george4064 15th Sep 18, 9:53 PM
    • 1,020 Posts
    • 1,073 Thanks
    george4064
    • #4
    • 15th Sep 18, 9:53 PM
    • #4
    • 15th Sep 18, 9:53 PM
    Interest is paid on closure for all of them. First Direct is the only one that pays a lesser rate if you close early.
    Originally posted by Ed-1
    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?
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £12,427.51/£12,000 (104%)
    Save £12k in 2018 - #004 £4,457.62/£12,000 (37%)
    • george4064
    • By george4064 15th Sep 18, 9:55 PM
    • 1,020 Posts
    • 1,073 Thanks
    george4064
    • #5
    • 15th Sep 18, 9:55 PM
    • #5
    • 15th Sep 18, 9:55 PM
    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"?
    Originally posted by YorkshireBoy
    Might just me being worried that I am misunderstanding their T&Cs.

    Thanks for looking into this.
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £12,427.51/£12,000 (104%)
    Save £12k in 2018 - #004 £4,457.62/£12,000 (37%)
    • Ed-1
    • By Ed-1 15th Sep 18, 9:58 PM
    • 2,349 Posts
    • 1,230 Thanks
    Ed-1
    • #6
    • 15th Sep 18, 9:58 PM
    • #6
    • 15th Sep 18, 9:58 PM
    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?
    Originally posted by george4064
    Yes.......
    • YorkshireBoy
    • By YorkshireBoy 15th Sep 18, 9:59 PM
    • 30,219 Posts
    • 18,113 Thanks
    YorkshireBoy
    • #7
    • 15th Sep 18, 9:59 PM
    • #7
    • 15th Sep 18, 9:59 PM
    Might just me being worried that I am misunderstanding their T&Cs.

    Thanks for looking into this.
    Originally posted by george4064
    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.
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