Hi I just wanted to check to see if someone could help me understand how the early withdrawal fee is calculated on a Permanent TSB one year fixed deposit account. I naively thought I would just loose the interest payable, but the figures I have been quoted by TSB are much higher than the interest I would have earned on the account even if I decided to leave the full amount on deposit for the full year? The interest rate is .75%. Amount to be withdrawn is €36,000. The remaining term is approx 9 months. The general t&c say The early withdrawal charge is (1% x Amount withdrawn x Remaining term) ÷ 365 or an amount equal to the funding loss (if applicable), whichever is the greater. A minimum of €20 applies. Funding Loss is calculated using the formula (AxTxD) ÷ 365 where: A = the amount withdrawn T = the remaining term D = the difference in the prevailing market rate of interest for a term equivalent to the period remaining and the rate applicable at the date of opening the account. Any idea where the 1% rate comes from, when the interest rate on the account is .75 gross (much less after DIRT)? Also as I read it, I will loose the interest accrued to date on the amount withdrawn in addition to the withdrawal fee, seems very penal. Many thanks

Have you spoken to PTSB? Have you asked PTSB what the early withdrawal charge will be in your case? Often, the T&C's say one thing and in the real world charges might not apply charges.

thanks CiaranT, yes I have been through the process with the manager in the PTSB, verbally I have been told that this is how it will work and I am waiting for a final written confirmation.

Sometimes a good sob story as to why you need the money early helps your case! Get the exact amount in writing.