What is an interest adjustment?
It’s a reduction in interest if you withdraw funds early before the maturity date. It reduces the interest you receive based on how long your funds are invested. Below is an example of how we calculate an interest adjustment on an early withdrawal.
For Term Deposits opened or renewed from 23 February 2026:
Sam opened a new 6-month (183 day) Term Deposit for $10,000 on 1 June 2026 and has made a request to withdraw his funds early on 18 September 2026.
Sam made an early withdrawal request on the 18th of September; therefore, his notice period of 31 days would end on 19 October 2026 (140 days from opening the account).
- This means 76.50% of the investment term has elapsed (140/183 days) and an interest rate reduction of 40% (refer to the table below) will apply.
- The new effective interest rate becomes 3%, which is calculated as (60% x 5.00%) and is applied for the period the Sam has his funds invested (140 days).
|
Timing of withdrawal (% of term elapsed) |
Interest rate reduction |
|---|---|
|
Within the 7-day period after a Term Deposit renews |
0% (No interest rate reduction) |
| Outside of the 7 day withdrawal period | 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% |
For Term Deposits opened or renewed before 23 February 2026:
- Sam opened a new 6-month (183 day) Term Deposit for $10,000 on 1 June 2025 and has made a request to withdraw his funds early on 18 September 2025.
- As his Term Deposit was opened prior to February 2026, Sam doesn’t have to provide 31 days’ notice, and the withdrawal can be processed on the same day (109 days from opening the account).
- The sliding scale of interest doesn’t apply to Sam, instead the rate is reduced to 0.01% p.a. and is applied for the period Sam had his Term Deposit invested (109 days).