What’s a term deposit holding facility?
Last updated 04 October 2016
In some cases, the Bank may transfer your funds to a holding facility when your term deposit matures. When your funds are in the holding facility, they’re reinvested at a fixed interest rate every seven days until we receive your instructions to withdraw the full amount or lock it away for a new fixed term, giving you more flexibility and time to decide what to do with your funds.
You can plan ahead and tell us to transfer your term deposit funds to the holding facility at any time during your term, so long as it’s up to one day prior to your term deposit maturity date. We’ll transfer your term deposit funds, as instructed, on the maturity date.
When funds are in the holding facility, withdrawals are allowed without any prepayment penalty. Bear in mind you will not receive interest for a seven-day period if the withdrawal of funds falls between the last interest payment date and the next interest payment date.
Discover more about term deposit holding facility interest rates