Cash ISA withdrawal penality question

vienly

https://uk.virginmoney.com/savings/products/2_year_fixed_rate_cash_e_isa_issue_493/#can-i-withdraw-money 

Hello, I'm a bit confused with the terminology used in the T&C, can someone explain to me what exactly would happen if I withdrew money and how much I would be charged?

For example, If I had £50,000 in this ISA which is 2.10%, and I withdrew £10,000.

Would I be charged and be paying them as a penality, and how much?

• You can withdraw money from your account but you cannot put money back in. Any withdrawals made within the fixed rate period are subject to a charge equivalent to 90 days' loss of interest on the amount withdrawn.

Thank you

 

 

grumiofoundation

Yes you will be paying a penalty, will be ~£52 (see below for calculation)

If you withdraw 10,000 you pay a penalty of 90 days interest on 10k (the amount withdrawn).



10,000 x 0.021 x (90/365) = 51.78

vienly

grumiofoundation said:

Yes you will be paying a penalty, will be ~£52 (see below for calculation)

If you withdraw 10,000 you pay a penalty of 90 days interest on 10k (the amount withdrawn).



10,000 x 0.021 x (90/365) = 51.78

Many thanks, nice and clear explanation!