New term deposit rules come under scrutiny

Term deposit rules are under scrutiny by the Australian Securities and Investments Commission.

About 20 banks and credit unions have changed the conditions of their term deposits. They now require depositors to give 31 days' notice if they want to withdraw their cash before the term deposit maturity date.

Withdrawing from a term deposit before it matures can also incur an interest rate penalty.
ASIC said it will consider, over the next 18 months, whether extra consumer protections are needed for term deposits with 31 day notice periods.

Source: Banking Day

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