Bank deposits are an option that clients of entities may find attractive to keep their money in a demand account, especially those with higher returns. Specifically, it is a savings product in which account holders deliver an amount to the bank during a specific period of time and once the stipulated period has passed, the money returns to the client along with the agreed profitability.
So far everything is perfect, but what happens if by chance you need that money. Would it be possible to recover the money at that moment or should you wait for the deadline agreed with your bank to expire?
According to the Bank of Spain, everything will depend on the conditions you have agreed with your financial institution, since some do allow the withdrawal of money when the client considers it, but there are others that do not. That is why it is best to read the contract carefully and think carefully about whether the decision made is appropriate taking into account economic needs.
What happens if you cancel it?
The truth is that even though they allow you to cancel the deposit, the most common thing is that the bank charges you an amount as a penalty or commission for said procedure. This is also usually built into the agreement between the client and the entity.
However, this commission, in no case, can be higher than the gross interest that has accrued from the beginning of the deposit until the date of cancellation. But this does not affect the entity’s obligation to practice the tax withholding provided for in the regulations, so it is possible that the amount received after early cancellation is less than the initial amount.
For all this, the Bank of Spain insists on the importance of paying attention to all the information and conditions, especially the prior cancellation policies that the bank has before contracting a financial deposit.
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