Did you know that some banks now require 31 days’ notice to access term deposits prior to maturity? This was regulated by the Australian Prudential Regulation Authority (APRA) back in 2015 to ensure that financial institutions had enough funds to withstand uncertain market conditions.
Recently, we have seen some clients caught out with this – especially when relying upon being able to break a term deposit to fund time critical expenses such as pension payments or purchases such as property.
It is a timely reminder to read the Product Disclosure Statement (PDS) when entering into financial product arrangements so that you are aware of all of the conditions. If you’re not sure whether your term deposit has this condition, please contact your bank.