Hi everyone,
I have been wanting to deposit €40k in a 1 year fixed term deposit account but I am finding it difficult to estimate the costs should I (worst case scenario) have to withdraw the full amount prior to maturity.
KBC state their breakage costs are "A x B % x C Where:
A - is the amount withdrawn; B % - is the difference between the prevailing market Interest rate for a term that coincides or is closest to the number of days remaining in the term, and the Interest rate on the Standard Fixed Rate Deposit Account; and
C - is the number of days remaining in the term, then divided by 360".
The bank said they cannot speculate on changes in market interest rates but I have no idea if this means the fees could be in the region of €100, €500, €1,000, €5,000 etc...
Would anyone be able to give me an example based on changes in market interest rates in the last number of years which would estimate possible breakage fees on €40k withdrawn after 6 months?
Thanks for your help,
killian