A Brain Teaser for the Experts

Robert_Sterling_3

Which savings account charges up to about £1,085 when you make a withdrawal even though you only withdraw a small amount e.g. A fiver?

Robert Shilling

YorkshireBoy

My "wild" guess is something like the Britannia home saver account where, if you do not use the sum saved as a deposit for a mortgage with them, your interest rate payable is drastically reduced.

Am I close?

Robert_Sterling_3

YorkshireBoy wrote:

My "wild" guess is something like the Britannia home saver account where, if you do not use the sum saved as a deposit for a mortgage with them, your interest rate payable is drastically reduced.
Am I close?

I do not know the terms and conditions of the scheme you mention so you would have to tell me if they are "In the frame".

I have another institution in mind.

deemy2004

Sounds like somesort of fixed period account

can you give more info on the type of account i.e. your post implies its an instant access savings account.

But the penalty charge implies its a fixed period account that loses say 6 months interest if any amount is withdrawn and may be linked to somesort of underlying asset maybe house prices or equities linked bond ?

I'm getting a feeling of dejavu ???

blinko

Sounds like somesort of fixed period account

can you give more info on the type of account i.e. your post implies its an instant access savings account.

But the penalty charge implies its a fixed period account that loses say 6 months interest if any amount is withdrawn and may be linked to somesort of underlying asset maybe house prices or equities linked bond ?

I'm getting a feeling of dejavu ???

yeah i think that two i got a bond paying 5.6% fixed for 4 years and if i withdraw i get fined 180 days interest so im assuiming you have around 50,000 in that account

ffacoffipawb

Robert_Sterling wrote:

Which savings account charges up to about £1,085 when you make a withdrawal even though you only withdraw a small amount e.g. A fiver?

Robert Shilling

First Direct e-Saver, pays 5.2% pa monthly but no interest paid in month of withdrawals, so .....

Deposit amount = £250,000 (maximum balance)

Withdrawal on last day of month = £5 so no interest paid for that month, assume it is a 31 day month.

Lost interest = ((1.052^(31/365))-1) *250,000 = £1,078.68

Using 1/12 year as a month ..........

Lost interest = ((1.052^(1/12))-1) *250,000 = £1,058.34

Not quite your figure, so may not be the same account.

Close, but no cigar?

Robert_Sterling_3

That is the correct answer.
I was giving an approximate answer using mental arithmetic.

ffacoffipawb

Robert_Sterling wrote:

That is the correct answer.
I was giving an approximate answer using mental arithmetic.

I still have such an account though. And so does my wife.

Any withdrawal will be made on 1st month. A second withdrawal the same day of the remaining balance will be transferred to the other person's e-saver, instantly via each others' current accounts.

Only one account will have any money taken out of each month.

So no loss of interest.

So far no withdrawals made.

Robert_Sterling_3

Astute or what! I like it.