Cancellation
Depending on the terms of the agreement, the customer can often cancel the deposit before it reaches maturity. The bank may also be able to cancel the deposit, if the terms and conditions allow.
The bank’s cancellation of a fixed-term deposit
The bank may cancel a fixed-term deposit and any rollovers provided that the terms and conditions allow and it gives sufficient advance notice.
The customer’s cancellation of a deposit before maturity
Fixed-term deposits, as the name suggests, have a fixed maturity, which must be complied with. However, it is common for the agreement to give both parties (the bank and the customer) the option of early cancellation.
If this option is not included in the agreement, early cancellation cannot be decided unilaterally, making it necessary for the parties to agree the conditions under which it can take place.
To cancel a fixed-term deposit with several holders in advance, all the holders must give their approval.
In addition, the credit institution will charge the penalty established in the agreement.
The early cancellation penalty cannot exceed the total gross interests accrued from the date the deposit was opened to the cancellation date.
FREQUENTLY ASKED QUESTIONS
Is the money in a deposit account or time deposit safe if the bank goes bankrupt?
Read answeraboutIs the money in a deposit account or time deposit safe if the bank goes bankrupt?
Do all the holders have to give their consent to withdraw money from a jointly held deposit or cancel it in advance?
Read answeraboutDo all the holders have to give their consent to withdraw money from a jointly held deposit or cancel it in advance?
