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New 31 Day Notice to Withdraw Your Term Deposit

Information verified correct on December 5th, 2016

Is your bank rewarding you as much as they should for your loyalty?

New regulations to ensure financial institutions have enough liquid assets have responded with tightening rules when it comes to accessing your term deposit. These are one of the several changes that are likely to be implemented in the financial market.

Under the liquidity coverage ratio (LCR) starting in January, banks and financial institutions are required to have enough funds to cover their assets for a month should there be a financial crisis.

Another suspected change is the reduction in interest rate for online saving accounts - this is because high interest accounts are expensive for banks to maintain and by reducing rates they’ll have more capital to cushion financial shocks.

Did you know?

The regulatory body responsible for implementing the changes are the Australian Prudential Regulation Authority (APRA). APRA’s responsibility is to oversee banks, credit unions, building societies and insurance organisations.

Under the new regulations, banks are now required to have enough liquid assets to survive 30 days of financial turmoil.

Some of bigger banks in Australia have already implemented the change, notifying customers that they will no longer able access their term deposits early in the last 30 days before it reaches maturity.

This comes as problem for some investors, who need to be able to access their term deposits at short notice.

The change, which could put term deposits in position less favourable by savers, means that hybrid products such as the notice saver (offered by both Rabodirect and Westpac) and flexible high interest savings account grow in popularity.

Compare high interest savings accounts

Rates last updated December 5th, 2016
$
$
months
Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned
ME Online Savings Account
Ongoing, variable 3.05% p.a. rate when you link to a ME Everyday Transaction account and make a weekly purchase with your Debit MasterCard using tap & go. Available on balances up to $250,000.
3.05% 1.30% 1.75% $0 $0 / $0 Open More
RaboDirect High Interest Savings Account
Introductory rate of 3.20% p.a. for 4 months, reverting to a rate of 2.05% p.a. Available on balances below $250,000.
3.20% 2.05% 1.15% $0 $0 / $0 Open More
ING DIRECT Savings Maximiser
Ongoing, variable 2.75% p.a. when you link to an ING Orange Everyday bank account and deposit $1,000+ each month. Available on balances up to $100,000.
2.75% 1.60% 1.15% $0 $0 / $0 Open More
Bankwest Hero Saver
Ongoing, variable 2.65% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $5,000,000.
2.65% 0.01% 2.64% $0 $0 / $0 Open More
AMP Saver Account
Introductory rate of 2.55% p.a. for 4 months, reverting to a rate of 2.10% p.a. Available on balances below $5,000,000.
2.55% 2.10% 0.45% $0 $0 / $0 Open More
Australian Unity Easy Saver
Introductory rate of 2.90% p.a. for 4 months, reverting to a rate of 1.70% p.a. Available on balances below $250,000.
2.90% 1.70% 1.20% $0 $0 / $0 Open More
ANZ Online Saver
Introductory rate of 2.85% p.a. for 6 months, reverting to 1.25% p.a. Available on the entire balance.
2.85% 1.25% 1.60% $0 $0 / $0 Open More
Westpac eSaver
Introductory rate of 2.71% p.a. for 5 months, reverting to a rate of 1.25% p.a. Available on the entire balance.
2.71% 1.25% 1.46% $0 $0 / $0 Open More
St.George Maxi Saver
Introductory rate of 3.00% p.a. for 3 months, reverting to a rate of 1.05% p.a. Available on balances below $5,000,000.
3.00% 1.05% 1.95% $0 $1 / $1 Open More
Bank of Melbourne Maxi Saver
Introductory rate of 3.00% p.a. for 3 months, reverting to 1.05% p.a. Available on the entire balance.
3.00% 1.05% 1.95% $0 $1 / $1 Open More
BankSA Maxi Saver
Introductory rate of 3.00% p.a. for 3 months, reverting to a rate of 1.05% p.a. Available on the entire balance.
3.00% 1.05% 1.95% $0 $1 / $1 Open More
ANZ Progress Saver
Ongoing, variable 1.91% p.a. when you link to any Australian everyday bank account and deposit $10+ each month. Available on the entire balance.
1.91% 0.01% 1.90% $0 $10 / $10 Open More
Westpac Reward Saver
Ongoing, variable 1.85% p.a. when you deposit at least $50 and make no withdrawals each month. Available on the entire balance.
1.85% 0.01% 1.84% $0 $0 / $0 Open More

Compare term deposits

Rates last updated December 5th, 2016
$
3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. 48 Mths p.a. 60 Mths p.a. Min Deposit Interest Earned
Bankwest Online Term Deposit
Bankwest Online Term Deposit
2.30% 2.50% 2.70% 2.70% 2.60% 2.60% 2.65% 2.65% $1,000 Open More
RaboDirect Term Deposit
RaboDirect Term Deposit
2.40% - 2.85% 2.70% 2.90% 3.00% 3.05% 3.30% $1,000 Open More
St.George Term Deposit
St.George Term Deposit
2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
Bank of Melbourne Term Deposit
Bank of Melbourne Term Deposit
2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
BankSA Term Deposit
BankSA Term Deposit
2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
Citibank Term Deposit ($75,000)
Citibank Term Deposit ($75,000)
2.50% 2.50% 2.95% 2.35% 2.35% 2.35% 2.35% 2.35% $75,000 Open More
Westpac Term Deposit
Westpac Term Deposit
2.10% 2.00% 2.20% 2.50% 3.00% 3.10% 2.70% 2.85% $5,000 Open More
ING DIRECT Term Deposit
ING DIRECT Term Deposit
2.10% 2.60% 2.10% 3.00% 2.70% - - - $10,000 Open More
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Which banks have passed the changes so far?

  • National Australia Bank
  • St.George
  • AMP
  • Westpac
  • Commonwealth Bank
  • ANZ
  • ING Direct
  • Bank of Melbourne

It's important to note that all licensed and registered financial institutions in Australia will eventually need to pass on the changes.

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Who decides on these new changes?

The new regulations apply to Australia and handful of other economies who are part of the Basel Committee, and are part of the Basel reforms. The Basel Committee is a forum for banking and financial experts all over the world. It’s objective is to improve the qualities for bank supervision worldwide and has the following members:

  • Argentina
  • Australia
  • Belgium
  • Brazil
  • Canada
  • China
  • European Union
  • France
  • Germany
  • Hong Kong SAR
  • India
  • Indonesia
  • Italy
  • Japan
  • Korea
  • Luxembourg
  • Mexico
  • the Netherlands
  • Russia
  • Saudi Arabia
  • Singapore
  • South Africa
  • Spain
  • Sweden
  • Switzerland
  • Turkey
  • the United Kingdom
  • the United States.

The Committee involves the world’s leading economies and sets global standards for the financial institutions in the listed countries. Typically, the aim is to avoid another Global Financial Crisis when banks in America and Europe, didn’t have enough funds to facilitate withdrawals.

Under the new laws, banks are struggling to issue the correct product disclosure statements and training their staff about the new changes. The Australian Securities and Investments Commission (ASIC) have given the green light for the banks as long as they meet certain rules. These include renaming the product so it’s different to ‘term deposit’ and providing a written notice to consumers about the new 31 day notice requirement.

Shirley Liu

Shirley is finder.com.au's publisher for banking and investments. She is currently studying a Masters in Commerce (Finance) and is the author of hundreds of articles. She is passionate about helping Aussies make an informed decision, save money and find the best deal for their needs.

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