Closing existing Fixed Term Account with AIB to avail of new higher rates.

I

IsleOfMan

Registered User
Messages
923
Typical of me I opened a Fixed Term account with the AIB last month paying 2% per annum for a fixed term of two years. I see that their new rate will be 3%, shortly.

Can I close this account and open a new one and if I do is there an interest penalty?

I opened the account for €130k.
 
The only way you can end it early is if you're still within the cooling off period.

"4. Cooling Off and Change of Mind
If you are not happy with your Account, you have 14
days to contact us in writing (or in any other way we
allow) to cancel your Account. This period begins on
the date your Account is opened, or the date you
receive terms and conditions for your Account and
other Account information (whichever is later) or on the
Investment Date (in the case of reinvestment).
If you contact us within this period to cancel your
Account, we will repay you any funds you have lodged
to or reinvested in the Account but not any interest
accrued on the Account during this 14 day period.
If you do not contact us within this period to cancel your
Account, the terms of the Agreement will continue to
apply."
 
I imagine that the terms and conditions will include the information you are looking for, including how to close your account prematurely and what penalties and/or fees are due

You will have been given a copy when you opened the account

If the interest rate had been reduced, you wouldn't expect the bank to close the account and open a new account with the lower rate, so why would you expect the contrary when rates rise

A Fixed Term account is what it says on the lid
 
jpd said:
You will have been given a copy when you opened the account
Click to expand...
I received absolutely nothing when I opened the account. Just a receipt for the lodgment made on the lodgment chit. A week later I received a statement in the post. Nothing else.
 
Any accounts I’ve opened with AIB (approx 7 over the last couple of years) were accompanied by a slew of paperwork, all delivered by e-mail. Three were opened in branch, the remainder online.
 
IsleOfMan said:
I received absolutely nothing when I opened the account. Just a receipt for the lodgment made on the lodgment chit. A week later I received a statement in the post. Nothing else.
Click to expand...
There's something wrong with that.

You can't open a new account without accepting their terms & conditions. Did you open online or in branch using a paper form?

If you never received a copy of terms & conditions, you should complain as its a breach of the consumer protect code.
 
RedOnion said:
The only way you can end it early is if you're still within the cooling off period.
Click to expand...
Early termination is also allowed for Death, Bankruptcy and where the money is needed to offset other monies due to AIB. Apart from the Cooling Off period there is no provision for discretionary termination. Someone said in another thread that the bank will consider early termination in "hardship cases", however the T&Cs make no mention of this, and "I want to invest in a different product with higher returns" is unlikely to get much of a hearing on the grounds of hardship.
 
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