What fees or interest reductions apply if I withdraw before maturity?
An early withdrawal will incur:
A $30 early redemption fee.
A prepayment adjustment that reduces the interest earned.
The reduction depends on how much of the original term has lapsed.
| Percentage of the term lapsed. | Adjustment to be applied as a % of your interest rate. |
| 0% to less than 20% | 90% |
| 20% to less than 40% | 80% |
| 40% to less than 60% | 60% |
| 60% to less than 80% | 40% |
| 80% to less than 100% | 20% |
Prepayment adjustment example: For a 5.00% p.a. one-year term deposit of $50,000, where the entire account balance was withdrawn after 4 months:
- Divide the original interest rate by 365 to get the daily interest rate 5.00% ÷ 365 = 0.0136986%
- Multiply this by the amount of the term deposit to get the interest earned each day $50,000 x 0.0136986% = $6.8493
- Multiply this by the number of days for which the funds were deposited $6.8493 x 122 days = $835.62
- Find the percentage of the original term that has elapsed 122/365 (days) = 0.33 (33%). As 33% of the original term has passed, the interest will be reduced by 80%.
- Multiply the interest earned by 80% (0.80) to get the prepayment interest reduction $835.62 x 0.80 (80%) = 80% $668.49 (rounded to two decimal places).
This is the interest you will lose if you close your term deposit early. These calculations do not include the $30 early withdrawal fee.
Note that the calculation above is intended as a guide only and may vary slightly from your actual interest earned due to the rounding used in the example.
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