Term Deposit FAQs

In recent years, the banking regulator APRA has made changes to prudential requirements across the banking industry, including standardising minimum notice periods for fixed term deposits. To meet these requirements, we’re introducing changes to our Term Deposit and Negotiable Interest Term Accounts (NITA) such as introducing a 31-day notice period for early withdrawals, increasing the grace period for NITAs to 7 days, reinvesting funds at the applicable term and interest rate when no instructions are received and introducing a fairer interest rate adjustment when funds are withdrawn before maturity.

These changes will apply to new Term Deposit and NITA accounts, or an existing Term Deposit or NITA account on the next renewal on or after 27 January 2026.

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Frequently asked questions

If you request an early withdrawal of a TD or NITA opened (or an existing account reinvested upon maturity) on or after 27 January 2025, we will apply an interest adjustment. The interest adjustment will be equivalent to reducing the interest rate on your Term Deposit by 10-80%, depending on the percentage of the term elapsed. The closer the early withdrawal date is to the maturity date, the lower the interest adjustment will be.

Percentage of term elapsed vs reduction adjustment (% of your interest rate)
Percentage of term elapsed	Reduction adjustment to be applied as a % of your interest rate
0% to less than 20%	80%
20% to less than 40%	60%
40% to less than 60%	40%
60% to less than 80%	20%
80% to less than 100%	10%

Example:

You started a 183-day Term Deposit of $25,000 at an interest rate of 4.00% per annum. After 59 days you provide a 31 days’ notice request to withdraw the $25,000. On day 32 (which is a business day), 90 days have elapsed (59 days plus 31 days' notice) which is 49.18% of the term.

Since only 49.18% of the term has elapsed, an interest adjustment of 40% will apply. The interest rate is therefore reduced by 40% or 1.60% p.a. (which is 40% of 4.00% p.a.).

Interest is calculated for 90 days at the original interest rate of 4.00% per annum, which equals $246.57. This amount is reduced by the prepayment interest adjustment of 1.60% per annum, which equates to an interest reduction of $98.63, meaning the interest payable on prepayment is $147.94.

The amount paid on early withdrawal is $25,000 plus the adjusted interest payment of $147.94.

No early withdrawal interest adjustment will be applied if you withdraw funds within 7 days after reinvesting your term deposit (i.e. during the grace period).

Term Deposit FAQs

Frequently asked questions

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Term Deposit FAQs

Frequently asked questions

Is a term deposit right for you?

What is the notice period for early withdrawals?

How do I withdraw funds from my term deposit account?

How do I request an early withdrawal from my Term Deposit?

How is the Term Deposit early withdrawal interest adjustment calculated?

What interest rate do I earn on my Term Deposit when I request an early withdrawel?

Is the notice period 31 business days or calendar days?

Is the grace period 7 business days or calendar days?

What happens once the notice is provided?

How does the grace period operate?

Need support?

Contact us

Locate us

IMB Bank is one of the most enduring financial institutions in the country, helping people achieve their financial goals for over 145 years.

Your security, our priority

How to stay secure

Types of fraud and scams

Security updates