FAQs - Early Withdrawal from a Term Deposit | Rabobank AU
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FAQs - Early Withdrawal from a Term Deposit

Are there any restrictions as to when I can break a Term Deposit?

If you would like to withdraw (i.e. break) your Term Deposit prior to maturity, you will be required to provide us with at least 31 calendar days’ notice, unless a grace period applies or unless we determine that you are suffering financial hardship. You will be required to pay an early withdrawal fee unless we determine that you are suffering financial hardship.

How is the Term Deposit early withdrawal fee calculated?


For Rabobank Online Savings Term Deposits opened on or after 1 August 2019

 If you request an early withdrawal of a Term Deposit opened (or rolled-over an existing fixed term) on or after 1 August 2019, we will apply an early withdrawal fee. The amount of the fee will be equivalent to reducing the interest rate on your Term Deposit by 10-80%, depending on the elapsed term. The closer the early withdrawal date is to the maturity date, the lower the early withdrawal fee will be.

% of elapsed term

Reduction to Interest Rate

0 to less than 20%


20% to less than 40%


40% to less than 60%


60% to less than 80%


80% to less than 100%


Example: You have a $20,000 Term FMD invested for 1 year (365 days) at 2.50%p.a. and you request to withdraw it after 210 days. The interest that has accrued is: $20,000 x 2.50%p.a. x 210 / 365 = $287.67.

To determine the reduced interest rate to apply we divide the elapsed term of 210 days by the full term of 365 days to get an elapsed term percentage figure of 57.53%. In accordance with the above table, as the term elapsed is between 40-60%, we will apply a 40% reduction to the 2.50%p.a. calculated as follows: 2.50%p.a. – (2.50% x 40%) = 1.50%p.a.

Interest calculated using the new reduced interest rate is: $20,000 x 210 days x 1.50% / 365 = $172.60.

The interest adjustment is therefore: $287.67 - $172.60 = $115.07.

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).

For Rabobank Online Savings Term Deposits opened before 1 August 2019

For early withdrawal from a Rabobank Online Savings Term Deposit commencing before 1 August 2019, you must pay a break cost and a processing fee of $25.

Break costs reflect future cash flow losses incurred by us as a result of interest rate differentials that exist between wholesale market rates applicable to the existing term deposit and current wholesale market rates applicable for the remaining period of the term deposit, adjusted to reflect a net present value. Break costs increase in line with increases in the following: interest rates, the amount withdrawn and the market margin.

Further information can be found in the relevant terms and conditions, or is available on request.

Can the break request be cancelled or amended during the 31 Day Notice period?


Once you request and authorise an early withdrawal over the phone, you can cancel this up until the business day prior to the release date by calling the contact centre before 6pm (Sydney time).

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


To request early withdrawal of a Rabobank Online Savings Term Deposit, please call us on 1800 445 445, from 10:30am to 3:30pm (Sydney time) Monday to Friday and we will arrange this for you. Please be aware that a 31 day notice period (unless your maturity date is sooner) plus an early termination fee will apply, these are detailed in our Terms and Conditions.

How will I know when my grace period expires?


We will notify you prior to maturity advising you of the start and end dates of your grace period. Please ensure your contact details are current so that you will receive these notifications.

How does the grace period operate?


Each time your Term Deposit auto rolls you will benefit from a 7 day grace period that starts from the day after maturity. During the grace period you will be entitled to withdraw or transfer your Term Deposit without incurring a fee or reduction in your interest rate.

Is the grace period 7 business days or calendar days?


The grace period is 7 calendar days. If the 7th day falls on a weekend or a national public holiday, you will have until the following business day to be covered under the grace period.

Is the notice period 31 business days or calendar days?


The notice period is 31 calendar days. If the 31st day falls on a weekend or a public holiday, your funds will be deposited into the Rabobank Online Savings account from which you funded your Term Deposit on the next business day.

I need more information?


If you require clarification or any further information, please call our friendly team on 1800 445 445, we’re available Monday to Friday 6am to 8pm (Sydney time) or email us anytime on clientservicesAU@rabobank.com.

What happens if I have less than 31 days remaining on my Term Deposit and I want the funds before maturity.


Unfortunately you can't withdraw the Term Deposit early if you have less than 31 days remaining before the maturity date, except in the case of financial hardship.

What happens once the notice is provided?


Once the 31 days' advance notice has been provided and served, the Term Deposit principal and all accrued interest up to the date of payment (minus early withdrawal fees) will be automatically returned to the Rabobank Online Savings account from which you funded the Term Deposit. If the 31st day falls on a weekend or a public holiday, your funds will be deposited on the next business day.

What interest rate do I earn on my Term Deposit when I request a break?


Your interest rate will not change and you will continue earning the same rate for the next 31 days.

What is deemed as financial hardship?


Financial hardship comes in many forms such as unforeseen changes such as the loss of income, employment or illness - which impact your ability to meet your current financial obligations.

Financial hardship is assessed on a case by case basis.

If you wish to request early release of your funds on the grounds of financial hardship, you will need to complete this statutory declaration.

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