Fixed Term Deposit

With a High value term account, you choose for a risk-free investment for a defined period at a high, fixed rate.

If, due to unexpected circumstances, you need to have your cash urgently, it is possible to break up the term of the High Value term account at each moment. At the break up of the term your cash will be immediately available on the linked account.

The break-up value of the High Value term account will then be calculated as follows:

Accrued Interest : the amount of (gross) interest you earned for the entire period where your term account was active.

The Break-up penalty is calculated as follows :

Nominal = the invested amount on the term account
« i-actual » = the current interest rate of the term account which starts today and for which the end date is equal to the original end date of the term account which has been broken up.
« i-contract »= the interest rate which applies to the term account that has been ended.
« days »= the number of days between the break up date and the original end date of the term account.

Note : in certain circumstances the Break-up penalty can be negative. This can be the case in periods of falling interest rates. In this case, you will get a « bonus » instead of a « penalty ».

Example :
On May-23, 2007 you open a term account for 12 months at 3,90% for 25.000 EUR.
On Apr-23, 2008 (1 month before maturity) you want to break up the term account.
On Apr-23, 2008, the interest rate on a 1 month term account is 3,65%.

The break-up value on Apr-23, 2008 will be calculated as follows :

Step 1 : calculation of accrued interests from May-23, 2007 until Apr-23, 2007 (335 days)

25.000 EUR * 3,90% * 335 / 365 = 894,86 EUR

Step 2 : calculation of the break-up penalty :

25.0000 EUR * (3,65% - 3,90% + 1%) * (30 / 365) = 15,41 EUR

Step 3 : final break-up value on Apr-23, 2008 :