A disgruntled customer of Capital G Bank is considering suing the bank after she received a notice to close a long standing savings account.

The woman, who asked not to be named, claims that the bank is illegally trying to close down her Jump Start Deposit accounts, an open-ended fixed rate savings scheme which was set up in the late 1990s (when interest rates were much higher than they are now).

"It is an absolute disgrace," said the woman. "It is just another case of the big corporation coming in and squashing the little guy.

This is not about people with a lot of money, but people like me, who scrimp to save what they can.

She said she received a letter in the middle of February, out of the blue, that with "immediate effect" the Jump Start account was to be "discontinued". This would mean that no deposits could be made and that in two years time it would mature and the account closed.

She said: "They just sent out this letter and that was that. And most people will roll over, but they shouldn't. What they are doing is wrong and we believe we have a very strong case against them."

She claims that what the bank is doing is illegal because the original agreement she signed when opening the account only stated she could close the bank account down ? and did not give the bank this power. She claims no supplementary information was given to her at the time.

A spokesperson for the bank, however, said that closing down the savings service was not only allowed but well within the parameters of normal banking laws.

"Product changes, including the discontinuing of a particular account, are provided for in the Capital G Bank Banking Services Agreement," said the spokesperson. "As is industry standard, the agreement makes provisions for the closure of any account at anytime providing that the bank gives seven days notice to customers.

"Individual product agreements however, often only deal with the operational specifics of that particular product or account, as is the case with the Jump Start Deposit Agreement. The Banking Services Agreement is posted in the Capital G Financial Services Centre and in the Retail Banking Hall."

But the customer complaining about the closure said that she was never shown any Banking Services Agreement, and that when she complained about the closure of her accounts, bank staff pointed her to a poster in the banking hall.

"That poster was only put up a few years ago ? long after I set up the accounts. I have never been told they could close my account down when they wanted to. The only thing I have is an agreement which states I am the only one to be able to close the account down.

"I am very angry about this, and I don't want to take it lying down," she said. "I have consulted my lawyer and he thinks I have a very strong case. But I have not yet decided whether or not to sue, but it looks like I could if I wanted to."

The banks said that the Banking Services Agreement contains a clause that states: "The client agrees that the bank may close at any time and from time to time any account with the bank giving seven days notice in writing to client at the client's address for correspondence? or such other address for such purpose from time to time notified by the client in writing to the bank."

Capital G said it issued a two-year notice to customers that the Jump Start Account will be discontinued.

It said the account, established by Gibbons Deposit Company several years ago, commands a preferential interest rate and as the name suggests, was designed to help customers to start a savings programme.

"This kind of deposit product, unlike a standard CD, allows customers to add to the deposit at anytime while helping them to be disciplined as a result of the two-year notice required for withdrawal," said the spokesperson.

"As market conditions change and as the Bank move forward with the implementation of its long-term strategic plan, changes to our product mix will occur from time to time. Products will be added to the mix and inevitably, some of the older products may be discontinued."

And the bank said that Jump Start customers will continue to earn the preferential interest rate during the two-year notice period, though no further deposits will be accepted.

It said that Jump Start customers who are concerned about the implications of the discontinuing of this product or who would like to know more about the options that are available to them, should contact a financial services representative at the Capital G Financial Services Centre.