Your term deposit is invested subject to the following conditions.
- The investment is fixed for the term as shown.
- Interest is calculated daily at the rate shown and is paid on maturity, unless otherwise agreed differently.
- Where terms exceed 12 months, interest is capitalised annually, interest payable in respect of the last 12 months or part thereof is added to the balance at maturity.
- Any variation to this method of interest payment will be specified in the written confirmation of your term deposit.
What happens to my term deposit at maturity or during the grace period?
At maturity or during the 7-calendar day grace period you can:
- Do nothing; your deposit and interest will automatically be reinvested on the maturity date for the same term at the then-current published term deposit interest rate. If the same term is no longer available, then the reinvestment will be for the published standard (ie non premium certificate) term closest to the original term.
- Re-invest your term deposit and interest for another term, add extra funds or withdraw part or all of your term deposit amount. If you are the owner of the account, you can do this via online banking self-serve, or alternatively your written request will be actioned either on the maturity date or by the next business day.
- Noting for a full withdrawal created online, we require your request before the maturity date.
- Where you add funds during the 7 calendar day grace period, interest will accrue on the additional funds from the date the additional funds are deposited into the term deposit account. The original value of the term deposit will accrue interest from the Maturity Date.
- Where you withdraw funds during the 7-calendar day grace period, interest will continue to accrue on the daily balance at the prevailing interest rate however less the amount withdrawn.
Early redemption of your term deposit.
- The term deposit is intended to be held for the agreed term, until maturity. Despite this, we may permit you to access your term deposit funds before maturity.
- A pre-payment adjustment and fee will apply. The extent of the pre-payment adjustment will depend on the percentage of the original term elapsed when early access is given.
Term deposits of two years and less.
- • You may ask us to release your term deposit before maturity by calling us or visiting your local branch during business hours. If we agree to release the term deposit, we will process your redemption within one business day of your request.
Term deposits over two years.
- Where the initial term of your term deposit is more than 2 years, you may access your term deposit amount before maturity. Please call us on 1800 033 139 or visit your nearest Defence Bank branch to discuss. If we agree to release the term deposit we will process your redemption within one business day of your request.
Grace period.
- As there is a risk that interest rates may change, we have allowed a 7-calendar day grace period after your renewal in which to enable you to change your instructions without a pre-payment adjustment or any other fee being applied.
For further terms and conditions.
Please refer to our Products and Services – Conditions of Use, available at Defence Bank branches or at defencebank.com.au. Applicable fees and charges are detailed in the Defence Bank Fees and Charges Schedule.
How to contact us.
Log in to the app or Online Banking to send us a secure message and one of the team will assist you with your enquiry.
Frequestly asked questions about term deposits can be viewed here and questions about self serve here.