Fixed rate bond query...

[StarbucksQueen]

My mum has a fixed rate bond with the Yorkshire Building Society.
It matures in 2023.
My nephew is buying his first house, and my mum wants to boost his deposit and was hoping to give him the money from the bond. She doesn't want to make withdrawals from the bond account, but close it and give some money to my nephew.
On the YBS website it mentions that you can't make withdrawals, but doesn't say if you can actually close the account. She appreciates there may be a penalty for closing the account, but branch staff have said you can't actually close the account. Anyone know if this is correct?

Yes you can close the account but will forfeit the interest.

I think it depends on terms and conditions of the account, some you can't close early, some you can with a loss of interest.

Check the ts and C's for the bond concerned, but for most fixed rate bonds that is correct, no access at all until maturity. ISAs have to allow access even if fixed rate, which is why they can be a better rate given that interest rates are now negligible all round.

Thanks, I'll have a look at the Ts&Cs online. I was struggling to find them, although bonds with Nationwide do look like you can close them - obviously there are differences between building societies

Info for older issues of bonds can be quite well hidden. The ybs contact centre should be able to locate it for you.

It will depend on the t&cs your Mum opened it but I just went it to the first fixed rate bond they have listed online in their summary box and it says:

Withdrawals or closure are not permitted during the term other than circumstances covered under the Savings Pledges 2021 for account holder(s) or their immediate family members - critical or terminal illness, death, redundancy, nursing home or elderly care costs, divorce or court order. In these circumstances only, the balance and the interest to date of early closure will be paid.

So unfortunately it doesn't look likely.