Early redemption of State Savings products

[paper-folder]

Has anyone any experience of early redemption of State Savings products like Saving Certs or Solidarity Bonds? Their terms and conditions ask you to give seven business days notice. I was wondering how this works out in practice.

I was thinking of using something like a Saving Cert for my emergency fund if I could be sure of receiving funds within two weeks. Thanks.

 

[kenkin]

I have done this in the past. Got cheque within a week. Then a week to clear cheque in bank

 

[noproblem]

Just remember you'll be getting very little interest on your capital depending on how early you cash in the product. Otherwise, it's as has been already said.

 

[paper-folder]

I have done this in the past. Got cheque within a week. Then a week to clear cheque in bank

Thanks Kenkin, it's good to know that they turn them around quickly. Thanks too about the reminder being repaid by cheque and having to wait a week to clear, I had forgotten to factor that in.

Just remember you'll be getting very little interest on your capital depending on how early you cash in the product. Otherwise, it's as has been already said.

Thanks Noproblem, yes, I appreciate that it can be as low as 0.05% (tax-free), but hopefully as emergency funds they don't need to be drawn down at all. With the Saving Certs, after the second anniversary, the bonus is 0.55%, which I think is equivalent to an AER of 0.27%. As a tax-free account, this is favourable compared to other products that will be liable to DIRT or fixed accounts with early withdrawal penalties. The fact that higher bonuses are due if you can hold on might be a good incentive for some people to avoid dipping in to the fund for withdrawals that aren't really emergencies.