Can I withdraw from my term deposit early?

Jasmine Shillington Updated by Jasmine Shillington

If you wish to withdraw your term deposit early, you must provide us with 31 days’ notice.

We do not allow partial withdrawals from a term deposit.

Early withdrawal from a term deposit will incur the following interest rate reduction:

Portion of term remaining

Interest rate reduction

Less than 20%

20%

20% - 40%

40%

40% - 60%

60%

60% - 80%

80%

More than 80%

90%

Example: Matthew opened a 12 month term deposit for $50,000 on 15 April at an interest rate of 5% p.a. On the 15 December he decides to withdraw his funds to use as a deposit on a new house.

Below is how the interest payable will be calculated:

Portion of term remaining: 4 months / 12 months = 33.33%

Interest rate reduction: 5% x 40% = 2%

Interest payable: $50,000 x (5% - 2%) x (8 months / 12 months) = $1,000

The reduced interest amount will be subtracted from your interest payable, unless this interest has already been paid out to you, in which case it will be subtracted from your principal investment

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