Halifax has issued a warning about an interest penalty with a certain account (Image: Getty)
has issued a warning about one of its savings accounts as customers may incur penalty charges.
A customer got in touch with the bank as they had opened a Fixed Saver account, which is currently paying 3.75 percent for a one-year term.
Once you have launched the account, you have to deposit £500 or more within 10 days of opening it. You can make as many deposits as you want during the 10 days.
However, in this case the customer had opened the account by mistake, and asked over X: “Can I close it online via the app? Only just opened it, it’s the wrong one I’ve opened and put some money in it.”
The bank said in response: “This would need to be closed in branch as early closure would mean you would pay an interest penalty.”
The saver was alarmed to be told they may have to pay a penalty, saying: “What is that? I’ve only put [in] £400.
“How much would I have to pay? It’s a error accidently made opening wrong account up, why do I need to pay a penalty?”
The bank responded to explain that as it’s a one-year term account, they would be charged the equivalent of 90 days’ interest.
Halifax rules state that in closing a fixed rate account early, for a one-year account you will be charged 90 days’ of gross interest, for a two-year term it’s 180 days’ worth and for a five-year account the charge is 365 days’ worth.
The customer further expressed their frustration at being “punished for opening wrong account”, adding they hoped they could resolve the issue in branch without having to pay a charge.
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Halifax then responded with some more positive news: “Apologies for any confusion. There is a cancellation period of 14 days.
“Customers are entitled to change their mind without financial loss, so any early closure loss of interest will need to be refunded to customer.”
The saver then asked if they could close the account online as their nearest branch is “a long way away”.
Halifax said in response: “A fixed account would need to be closed at a branch please.” The Fixed Saver can be managed online, via the app, in branch or over the phone.
The one-year term starts the day you open the account. After the initial 20 days, you can no longer make deposits. You can hold up to £9million in the account.