Settlement Figure on Loan - more than total of remaining payments?

Has anyone come across this before? Have a loan with 10 payments left of €976 per month - just got a settlement figure of €10,415 for it. The bank said it is due to the loan being a variable loan and the shortfall is the difference in interest from April 06 to date.

Now I need to check my paperwork - but nearly positive it was a fixed loan - and surely if it was a variable then the payments would have been variable.

Looks like it makes more sense just to keep paying off the loan, rather than settle it early.

Yup. Just keep paying it off. Theres usually a charge for paying off a loan early, and the closer you are to the end of the loan, the less it becomes worthwile.

Just simply put the money in a savings account and earn interest from it.

If it was fixed you would probably face early redemption penalties anyway.

If the bank are telling you it is due to a shortfall this is probably due to variations in interest rates in that time. Just because you have only a term of 10 months left does not mean that there will not be a balance remaining on the loan at the end of the term. It would seem that there probably will be a shortfall which you will have to make up anyway. I would imagine the redemption figure you have been quoted is the balance on the account now unless there are some penalties being applied. So redemption now should save you the interest on the loan for the next 10 months