Penalties withdrawing your money from the bank too early

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itsme

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I opened a 1 yr fixed term savings account for about 20k last April 12 months. The term elapsed and after the 12 months the sum was invested again for a further 12 months. As i didn't go into the branch to tell them move the money somewhere or withdraw it completely, the money is tied up for another 12 months.

Now the account is transferred to ptsb and they tell me if I want to withdraw the money before April 2012 I will loose some interest and be charged 140 euro penalty. I was surprised by this as I thought I would not get the interest at the top rate but to be charges 140 on top of that I thought it a bit much.

It sounds like a bit of a sneaky hidden condition they never highlight to you when opening the account but really its daylight robbery. Anyone else run into similar issues.
 
I don't see any daylight robbery. There is a condition attached to your account and it is you that wants to break the term which has a penalty clause. Did you not read the terms and conditions of the account when you opened it. By their very nature term accounts guaranteeing a certain (high ) rate of interest will have a penalty if you break the term.
 
Do you want to withdraw the money prior to April 2012?

If you don't, this discussion is academic...
 
Most fixed term accounts won't automatically roll over into another fixed term without your authorisation. They usually just put the money in a demand account until you decide what you want to do. Was it in the terms and conditions that this would happen?
 
Yes I do want to withdraw the money b4 april 2012. Who reads all 20 pages of terms and conditions when you are opening the account. you are told to sign here on the day of opening, you are told you are getting a briliant rate and you should be very happy and the only conditions is you hold it for 12 months to avail of that rate. No mention of the 140 fee in any of their glossy leaflets they give you.
 
itsme said:
Yes I do want to withdraw the money b4 april 2012. Who reads all 20 pages of terms and conditions when you are opening the account. you are told to sign here on the day of opening, you are told you are getting a briliant rate and you should be very happy and the only conditions is you hold it for 12 months to avail of that rate. No mention of the 140 fee in any of their glossy leaflets they give you.
Click to expand...

Well check the T&C now. As I say it is unusual for a bank to roll a maturing fixed term account into another fixed term account without you asking for it. The default is usually to shove the money into a almost 0% demand accound until they hear from you.
 
Thanks sunny, That makes sense as it is like any contract both parties must agree but maybe failure on my part to withdraw the cash on time means I am agreeing to it.
 
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