We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Loss of interest if you withdraw

If I deposit £100 in an account with a 90 day penalty clause where you lose 90 days of interest, what happens if you withdraw 30 days after opening the account? Do you end up with less than the £100 or do you get £100 back with no interest?

Comments

  • kaMelo
    kaMelo Posts: 2,893 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Check the terms of the account for the answer.
    In the scenario you describe some accounts will deduct the full 90 days interest leaving you with less than you deposited but I'm sure there will be some which don't.
  • eskbanker
    eskbanker Posts: 38,151 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    If I deposit £100 in an account with a 90 day penalty clause where you lose 90 days of interest, what happens if you withdraw 30 days after opening the account? Do you end up with less than the £100 or do you get £100 back with no interest?
    As above, the terms will explain, but my expectation would be that you'd typically end up with less than you paid in - the penalty will generally be expressed as a charge equivalent to 90 days of interest, rather than losing 90 days of interest as such....
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.3K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.4K Spending & Discounts
  • 245.4K Work, Benefits & Business
  • 601.1K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.