Can I terminate a deposit before it matures?

31/10/2023

Fixed deposits offering higher returns can be more attractive than keeping savings in a current account. But if you need that money, can you terminate the deposit and get the money back in your account or do you have to wait until it matures?

It’s going to depend on the terms and conditions of the contract you’ve signed; some allow withdrawal before the agreed maturity and others don’t. A deposit’s term can range from a few months to several years, so it’s important to consider your cash needs and read the contract carefully before you sign it.

Also, remember that even if you can terminate it, the bank will usually charge you a penalty or fee for doing so, which must be specified in the contract. The fee can never be more the gross interest accrued from the start of the deposit to the termination date. However, this restriction does not affect the bank’s obligation to apply the fiscal withholding stipulated in the tax regulations, so an early termination could mean that you get back less money than you put in.

For all these reasons, before signing a deposit contract, it’s important not only to consider the returns, but also to review all the conditions in the information documents, including whether early termination is allowed and what penalties may apply.

Remember, if you want more information about the applicable regulations for this or any other banking product, you can find it using the EncuenTRAAbre en ventana nueva tool.