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.

  • What do you mean by "maximum balance?" Where is that stipulated? – JTP - Apologise to Monica Sep 30 '15 at 21:38
  • @JoeTaxpayer: I mean that the account has a greatest permissible balance. The owner of the account is not permitted to pay a sum of money into it if doing so would take the account's balance to above the maximum. – Hammerite Sep 30 '15 at 21:40
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    This is probably a good question for their customer service. It's a pretty straightforward policy question. – JTP - Apologise to Monica Sep 30 '15 at 21:42
  • I agree that I could ask the institution's customer service. But I thought that there might be a standard way of treating such situations of which I was unaware. – Hammerite Sep 30 '15 at 21:43
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    Admittedly, I've not seen everything, but this is new to me, never heard of a maximum permitted balance. I've seen maximum insured. And we may very well see other members offer you a good answer. But, in my opinion, this is classic 'ask customer service'. – JTP - Apologise to Monica Sep 30 '15 at 21:46

You will really need to contact the bank directly about this, and I doubt very seriously that this is any kind of unique situation to them.

My hunch (and this is only a guess, really) is that the term "maximum balance" refers to the maximum amount that you, the account holder, can deposit into the account, and that your actual balance can be higher than that with the addition of any accrued interest payments from the bank. This seems like a reasonable assumption, don't you think?

In any event, I for one would appreciate it if you would be so kind as to come back and share with us the answer once you've had opportunity to speak to the bank. This, for some reason, piques my curiosity.

Good luck!

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  • Rather nervy of someone to downgrade my answer without a post or explanation, but everyone's entitled to an opinion, I suppose. The advice stands. – Daniel Anderson Jun 11 '16 at 3:15
  • +1 from me. Daniel, welcome to Money.SE. Yes, downvotes rarely come with a reason. You took my "ask cust service" comment, and made a nice answer out of the sentiment, which is exactly what members want, real answers and not 'answers in comment.' – JTP - Apologise to Monica Jun 11 '16 at 13:09
  • Thank you for the kind words. My feeling is that if someone disagrees with (or dislikes) an answer then either their downvote should require an accompanying comment, or perhaps better yet, they should try to answer the question rather than anonymously critique those of us who do. In any event, thank you for the sentiment. – Daniel Anderson Jun 11 '16 at 13:21
  • Hello, yes they added interest directly to the account, which took it above the stated "maximum" balance. – Hammerite Jun 11 '16 at 16:33
  • Outstanding! Glad to know that my "hunches" are sometimes correct! (grin) It only seems logical that the maximum would be the amount you the depositor can put in the account and would not be the actual maximum. If that were the case, what would they do if you were to put just under the maximum in the account and then not touch it for a long enough period that the accrued interest takes the total above the maximum? It isn't as though they'd say "sorry, you can't have that, it's over your limit". Glad the issue resolved itself. Good luck! – Daniel Anderson Jun 11 '16 at 16:37

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