I am considering opening a new savings account with the building society with which I have my current account. (For completeness, I am in the UK, the building society is Nationwide, and the savings account is the "Loyalty Saver" account.) The savings account has a maximum balance of £50,000, and interest is paid annually on the balance.
But when interest is paid, surely this might increase the balance to above the maximum balance. For example, if I were to open the account now and place £50,000 in it, and then interest were paid on the 31st of December, then the account balance would subsequently be £50,000 plus the earned interest for about 3 months. This would be more than £50,000, and so this contradicts the stipulation that the account has a maximum balance and that this maximum balance is £50,000.
I would have thought that this would be a very obvious question for someone to ask; yet even though there is an FAQ for the product, this question is not addressed. The FAQ does say that "You can choose to add interest to your Loyalty Saver, any other Nationwide savings account (excluding Regular Savings and Flexclusive Regular Saver), or your current account.", but it does not say what (if any) restrictions apply to this choice.