Early withdrawal charges

Hi guys

I'm just wondering if anyone would know this.
I was in with permanent tsb with a lump sum 2 years ago and my existing deposit account had matured so I needed to reinvest. I had an investment review with one of the staff and explained my circumstances that I needed the money to build a house but planning and finding a site was tough so I didn't need instant access or anything.
They suggested taking out a 5 yr monthly income fixed account. They stated that by taking the monthly income option that I could end the account anytime directly after recieving a month of interest and not be penalised as I have got the interest all ready

2 years later and I am worried that I will be charged a high amount to close account after speaking to someone about it. Was the woman in the bank wrong. How does early withdrawal charges work? Is it only the interest that is penalised??

Any advice is appreciated

Thanks

I am a little confused by your post.

What is the precise name of your product?

It sounds like you have a 5-year fixed term savings account. There would usually be a penalty associated with withdrawing or closing such an account early. Sometimes penalty-free withdrawals are allowed if certain conditions are met, e.g. only a limited percentage of the balance is being withdrawn, or the withdrawal is made at a specified time such as on the account opening anniversary or mid-way through the term.

PTSB should be able to provide with you a written statement of the penalty that would apply were you to close the account or make a specific withdrawal. Generally the penalty would be an interest penalty on the balance being withdrawn.

The penalty calculation depends on the exact terms and conditions attaching to your account when opened, plus changes advised since then. It may also depend how these terms and conditions were explained to you verbally at the time, and any records you may have supporting this.


On a related note, I have today received a refund of a penalty applied by PTSB when I closed a savings account which PTSB claimed was a notice account.
http://www.askaboutmoney.com/showthread.php?t=180358