MyState Bank is updating the Terms & Conditions Deposit Accounts & Electronic Banking dated 30 April 2025

Amendments
Term Deposit Accounts
From 1 September 2025, the interest penalty outlined in clause 4.3 will be amended by replacing:
No interest will be paid on the proportion of funds that are withdrawn prior to maturity.
with:
Early withdrawal interest rate adjustment
Interest rates are offered on the basis that you agree to invest an amount of money for a certain length of time. You can withdraw your term deposit funds at maturity without incurring an interest rate reduction.
If you request to withdraw all or part of your funds prior to the maturity date, an interest rate reduction will apply. The reduction applied will depend on the percentage of the original term lapsed.
For Income Term Deposit Accounts, this may result in any interest already paid to you before the maturity date being deducted from the balance of your term deposit on redemption.
Interest adjustment to be applied
Percentage (%) of term completed | Reduction applied as a % of your interest rate per annum |
---|---|
0% to less than 20% | 90% |
20% to less than 40% | 80% |
40% to less than 60% | 60% |
60% to less than 80% | 40% |
80% to less than 100% | 20% |
For example, if your funds are invested for 50% of the agreed term the interest reduction to be applied will be 60%.
As an example, assuming an original interest rate of say 4.00% per annum, the interest rate you would earn on the withdrawal amount is:
4.00% per annum – (4.00% per annum x 60%) = 1.60% per annum
The current Terms & Conditions Deposit Accounts & Electronic can be found at mystate.com.au/legal.