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Fixed Term Deposit Account - Getting money back before term

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  • 30-12-2012 6:50pm
    #1
    Drexl Spivey
    Registered Users Posts: 528 ✭✭✭


    Hi,

    I have an AIB 24 months fixed term deposit account.

    End june 2013 is the end of my term.

    My question is: what would happen if I want to withdraw the money ASAP:

    - is it even possible
    - what is the penalty

    The reason is: I just prefer to repay my mortgage and stop trowing my money away to repaying interests. Admittedly, I should have thought about that before.


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    #2
    snubbleste
    Banned (with Prison Access) Posts: 31,117 ✭✭✭✭snubbleste


    What did AIB say when you asked? Was this before or after you looked at the terms and conditions of the product?


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    #3
    Drexl Spivey
    Registered Users Posts: 528 ✭✭✭Drexl Spivey


    snubbleste wrote: »
    What did AIB say when you asked? Was this before or after you looked at the terms and conditions of the product?

    If noone has an answer here I will indeed have to go to AIB, which I wanted to avoid for several reasons:

    - the staff is not fully aware of the ins and outs (they didn't even know about this specific account when I wanted to open it)

    - I'd like to know what are the options before I go to AIB so I know if I have grounds for requesting the withdrawal.

    To your last questions: "Was this before or after you looked at the terms and conditions of the product?"
    -> what do you think?

    Thank you for giving me helpful answers.


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    #4
    BuffyBot
    Registered Users Posts: 24,924 ✭✭✭✭BuffyBot


    ..and if people don't know the exact product you're talking about they can't give you much useful advice either. You can see how this is a two way street :)


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    #5
    Gordon
    Registered Users Posts: 35,524 ✭✭✭✭Gordon


    Drexl Spivey wrote: »
    To your last questions: "Was this before or after you looked at the terms and conditions of the product?"
    -> what do you think?
    It's a legitimate question because the t and cs of the product give you the answer to both of your questions, so if you're still asking the same question after reading that, then the resulting help offered here would be different to what I'm about to give you now. Seeing as you still haven't answered whether or not you've read the t and cs, I'll give you the links here:

    Account info with your answers: http://www.aib.ie/personal/savings/Fixed-Term-Account
    T and cs: http://www.aib.ie/personal/savings/Fixed-Term-Deposit-Terms


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    #6
    JTMan
    Registered Users Posts: 5,540 ✭✭✭JTMan


    Firstly, to the OP, your term deposit matures in June 2013. That is not that far in the future, hence can you simply not just wait? You don't need the funds for any urgent purpose.

    Secondly, the problem with T&C's for term deposits is they often don't answer the question as to what happens with an early withdrawal. They state:
    However in the event of early withdrawal which will only be permitted at the discretion of the Bank, redemption costs will apply.

    Catch all legal mumbo jumbo. Basically it is at the banks discretion and they can charge you whatever the hell they want.

    Again, you might be best waiting till June 2013.


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    #7
    Gordon
    Registered Users Posts: 35,524 ✭✭✭✭Gordon


    Fungus wrote: »
    Secondly, the problem with T&C's for term deposits is they often don't answer the question as to what happens with an early withdrawal. They state:



    Catch all legal mumbo jumbo. Basically it is at the banks discretion and they can charge you whatever the hell they want.

    Again, you might be best waiting till June 2013.
    Although it is at the discretion of the branch, it does state the charge:
    Because the funds are locked in for a specific term, you may not withdraw any of the funds during the term unless the Bank agrees, which is at the Bank's sole discretion, in which case you will incur a redemption cost. The redemption cost, which is intended to ensure that the Bank does not suffer a financial loss as a result of the early withdrawal, consists of:

    Administration cost of EUR63.50 + Funding Cost
    (where applicable)*

    *Funding cost is made up of the amount withdrawn multiplied by the difference in the interest rate on the date of deposit and the date of withdrawal multiplied by the remaining term.


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    #8
    Drexl Spivey
    Registered Users Posts: 528 ✭✭✭Drexl Spivey


    Thanks guys.

    I realized how silly it was to have put that money in a saving account in the first place since what I am going to make in interests is nothing compare to what I pay my mortgage company in interests.


    I just want to have my one and only debt paid off ASAP and once and for all in order to become a free man :)


    @Fungus: June 2013 seems a long time to wait to my perspective.


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