Loss of interest if you withdraw

neilmorgan

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?

kaMelo

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

neilmorgan said:

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....