What kind of savings instrument is this?

[Guest]

Forgive me: this is not really an Excel question. But
I know there are a lot of savvy financial people lurking
in these newsgroups. I hope one of you will be kind
enough to respond.

Someone described the following savings alternative
offered by a bank. I cannot find any information on
their web site. Can someone tell me what kind of a
savings instrument this is ...?

You contribute a fixed amount each month over a finite
period (e.g, 5 years) for a fixed APR. You pay a penalty
for early withdrawal.

I am not sure about any other details about the plan.
In fact, that is what I am looking for. But I need a term
to search for. My efforts have been fruitless so far.

TIA.

 

[damorrison]

RRSP??
Mutual Funds??

 

[nomail1983]

RRSP?? Mutual Funds??

It is certainly not a mutual fund.

If by RRSP, you mean a Registered Retirement Savings Plan, it
should not be that either. An RRSP sounds like the Canadian
equivalent of the US IRA. I forgot to mention that the savings
instrument in question is offered by a US bank.

I'm "sure" that the instrument in question is something like a
CD or a restricted money market account. But the description
does not fit either, at least not as know them.

BTW, I am guessing that there is a penalty for missing a
monthly payment. I don't know that for a fact. That is why I
want to find details online.

 

[nomail1983]

Can someone tell me what kind of a savings instrument this is ...?
You contribute a fixed amount each month over a finite
period (e.g, 5 years) for a fixed APR. You pay a penalty
for early withdrawal.

Aha! It is simply a savings annuity with a fixed term.