To think this can't be right (Nationwide savings account)

[Flossyfloof]

I really need to open a savings account so that my spar money doesn't get frittered away and a friend mentioned that Narionwide are doing an account at 4% interest, which seems pretty good.
I went to open an account earlier - it is one where you have to pay in monthly. It appears that you can't get the money out for a year. I queried this and said surely you can get the money out but then the account is just closed? (First Direct do a similar account and this is what they told me about theirs). Nope, he said, you have to leave it in. I was not sure that I wanted to tie up money for a whole year without any access - but have I misunderstood? Just wondered if anyone else has a Nationwide account who can enlighten me.

Some savings accounts do restrict access. Usually ISA style accounts. There are two types - one that you can't withdraw the money in any circumstances, one that you can but there are heavy penalties.

The bank invest the money, which is why they offer better interest rates, but means it can't easily be returned.

It's not just Nationwide that offer this.

If you need to be able to access your money, you need an everyday saver type account, rather than a high interest ISA style account.

Oh ok, thanks for that. I probably won't need it but I hadn't realised from reading their bumpf that there is no access to it and I was a bit taken aback.nthey do another one which I think he said was 3.1% which would perhaps be better as you can make a couple of withdrawals each year.
Thanks,

Yeah I think it's pretty standard for a high interest account to have restricted access :)

Generally speaking, the higher the interest rate, the less chance of you actually getting access to your money without incurring some sort of penalty or in this case, a flat "no, you're not having it"!

The savings account I have with Halifax is an instant saver with 0.25% interest (woo hoo! :o ) but I dont have it for the interest rate, because frankly unless you are looking at thousands, it doesnt make much difference. I have it because I dont have a card for that account (it is online only) , I am the only one who accesses it, although I think it is a joint acount, and only my leftovers go into it. There hardly anything in there now, literally pennies, as I used it to pay for the MOT repair on my car. But it made such a difference! A year ago I would have had to wait a couple of weeks and then had a tight month to cover them, this year I used my savings :)

So, loooooooong story short, depending on why you are saving, I wouldnt worry too much about the interest rate!

Well done Bogeyface, you are a Good Girl! How satisfying that must be, to not have to find the money from your monthly income. Yes I don't expect the interest rate will make that much difference, you can only put in a certain amount every month anyway. I was just a bit that he said no access at all!

Depending on how much you are saving, you might be better to look at current accounts. Tsb have an account that pays 5% up to £2,000, as long as you pay in £500 pm.

(I pay in by standing order, and take the money straight out again by the same method)

I have to admit to feeling partly a Good Girl and partly gutted that my £400 was going to pay for a fucking stupid piece of shit car :o

But then it chucked it down and I didnt have to walk to get the kids when I would have otherwise had to, and suddenly, it was ok. But using my savings did hurt