Term Deposit Accounts

Transcription

1 Term Deposit Accounts Product Disclosure Statement & Terms and Conditions Effective as at 30 June 2016 Prepared by Bank of China (Australia) Limited ABN AFS Licence No

2 This booklet along with the Schedule of Fees and Charges and Terms and Conditions, comprises the Product Disclosure Statement (PDS) issued by Bank of China (Australia) Limited ABN AFSL (Bank/we) for the Bank s Term Deposit Accounts. The information in the PDS is current as at 30 June 2016 and is subject to change from time to time in accordance with all laws. By applying for a product, you consent to receive notice of changes to this PDS via our website, or in an advertisement in a prominent newspaper circulating nationally. You may elect to receive notice of changes to the PDS solely in writing (other than by ) by contacting us at no additional cost. You can obtain the current version of our PDS (including the Schedule of Fees and Charges) on the Bank s website at any time or in the Bank s retail branches in Australia during normal business hours free of charge. Please see the relevant Terms and Conditions for further details. The invitation to open a Term Deposit Account described in this PDS is only available to persons receiving the PDS in Australia and the Bank is not bound to accept an application from you. The Bank's contact details are as follows: York Street Sydney NSW 2000 Customer Service: Overseas: Fax: personal.au@bankofchina.com Website: Details for each of the Bank's retail branches in Australia are available on our website at

3 Contents Part 1: Introduction... 1 Part 2: Product Disclosure Statement... 1 Section 1: Account Information... 1 Section 2: General Information What are the significant risks? How do I access further information? Dispute Resolution Process Customer Information and Privacy Notice Provisions Section 3: Terms and Conditions How to open an account? Currency Options Payment of Interest Foreign Exchange Transactions Fees and Charges Early Withdrawal Maturity Access the Account Trust Accounts Powers of Attorney Authority to Operate an Account... 23

4 12. Closing the Account Company Search Fax and Indemnity Statements and Notices Changing these Terms and Conditions Consumer Protection Financial Claims Scheme Investment considerations Liabilities Third Parties Rights Anti-Money Laundering Requirements Set-off Arrangements Jurisdictional Disclaimer Definitions... 29

5 Part 1: Introduction This booklet, along with the Schedule of Fees and Charges and Terms and Conditions, comprises the Product Disclosure Statement (PDS) for term deposit accounts. This PDS contains information about the term deposit accounts provided by the Bank which will assist you to: decide if these products meet your needs; and compare these products with similar products. This PDS has been prepared without taking into account your objectives, financial situation or needs. Therefore, if you wish to open or continue to hold a term deposit account with the Bank, it is important for you to consider the appropriateness of the product having regard to your objectives, financial situation and needs. Please read, consider and understand the PDS carefully before making any decision. Part 2: Product Disclosure Statement Section 1: Account Information What is a Term Deposit? A Term Deposit is a facility that pays a fixed interest rate on a fixed amount for a fixed term. If your application to open a term deposit account is accepted, your money will be locked in for a fixed term. Therefore, you should only invest money that will not be required for that period. If you make a withdrawal before the maturity of the term, the interest rate you receive will be lost or reduced in accordance with the Bank s requirements as set out in clause 6 of the Terms and Conditions. The Bank offers a Standard Term Deposit product, a Special Term Deposit product and a Controlled Money Account Term Deposit product. The Controlled Money Account Term Deposit is only available to Approved Law Firms in the States of Victoria and New South Wales. Please refer to the summary table below for the key features and benefits of each of the Bank s term deposit products. 1

6 Standard Term Deposit Key features and benefits The key features and benefits of the Bank s term deposit products include: Term Deposit Accounts Features This account can be opened by Individual Customers who are 16 years of age or older and Non-Individual Customers; This account can be denominated in AUD, HKD, CNY and USD; Term varies from 7 days to 5 years; Fixed interest rate for the term. Interest is paid on maturity if there is no withdrawal in advance of maturity at the interest rate that is current at the date of opening of your term deposit or, in the event of renewal of your account, at the then current interest rate for the account, which we will confirm to you by a new confirmation. For more information about the interest rate that applies to the product (and an illustrative example), please see clause 3 of the Terms and Conditions. For the calculation of interest on early withdrawal, please see clause 6 of Terms and Conditions; You may choose to receive principal payments and interest payments by cash or cheque, or choose to credit the payments into an account of your choice or reinvest the term deposit or invest in a new term deposit; You may not add a further sum to your term deposit until the maturity date; The current interest rates are available at one of our branches or by contacting your relationship manager. Additionally, the current interest rates applicable to Standard Term Deposit are available on our website; No account keeping fee. 2

7 Special Term Deposit Term Deposit Accounts Features This account can be opened by Individual Customers who are 16 years of age or older only; This account can be denominated in AUD and CNY only; We currently offer terms of 3 months, 6 months and 12 months. We may offer additional or alternative terms from time to time; Fixed interest rate for the term. Interest is paid on maturity if there is no withdrawal in advance of maturity at the interest rate that is current at the date of opening of your term deposit or, in the event of renewal of your account, at the then current interest rate for the account, which we will confirm to you by a new confirmation. For more information about the interest rate that applies to the product (and an illustrative example), please see clause 3 of the Terms and Conditions; For the calculation of interest on early withdrawal, please see clause 6 of Terms and Conditions; You may choose to receive principal payments and interest payments by cash or cheque, or choose to credit the payments into an account of your choice or reinvest the term deposit or invest in a new term deposit; You may not add a further sum to your term deposit until the maturity date; The current interest rates are available at one of our branches or by contacting your relationship manager. Additionally, the current interest rates applicable to Standard Term Deposit are available on our website; No account keeping fee. 3

8 Controlled Money Account Term Deposit Term Deposit Accounts Features The account can be opened only by an Approved Law Firm that has obtained a written authority from their client to deposit funds in a Controlled Money Account Term Deposit; All authorised signatories must be at least 18 years of age and must only be person or persons who are permitted to operate a CMA pursuant to the applicable law that regulates CMA. The account is only available in the States of Victoria and New South Wales; The account must be under the exclusive control of the Approved Law Firm; The account must be denominated in AUD only; Term varies from 7 days to 5 years; Fixed interest rate for the term. Interest is paid on maturity if there is no withdrawal in advance of maturity at the interest rate that is current at the date of opening of your term deposit or, in the event of renewal of your account, at the then current interest rate for the account, which we will confirm to you by a new confirmation.. For more information about the interest rate that applies to the product (and an illustrative example), please see clause 3 of the Terms and Conditions; For the calculation of interest on early withdrawal, please see clause 6 of Terms and Conditions; Withdrawals can only be made by way of bank cheque (issued by the bank) or electronic funds transfer on the date the account is closed. Other forms of withdrawal (including cash withdrawals, ATM withdrawals or transfers and telephone banking withdrawals or transfers) are prohibited; No cheque book will be issued for a CMA No internet banking facility for CMA. Before the account is closed, on maturity, your Controlled Money Account Term Deposit (including the accrued interest, less any fees, charges and applicable Tax incurred) will be automatically renewed for a further term which will be the same length as the term just ended, at an interest rate applicable to the Controlled Money Account Term Deposit at the date of renewal You may choose to reinvest the term deposit or invest in a new term deposit; The current interest rates are available at one of our retail branches in the States of Victoria and New South Wales or by contacting your relationship manager; No account keeping fee. All statements and correspondence will be provided to the Approved Law Firm as the account holder. 4

9 Terms and minimum balance required For Term Deposits denominated in AUD, the following terms and minimum balances apply: Fixed Terms Standard Term Deposit and Controlled Money Account Term Deposit 1,000< 10,000< 30,000< 10,000 30,000 Maximum* Special Term Deposit 5,000< 5,000,000 7D 1M 2M 3M 4M 5M 6M 7M 8M 9M 10M 11M 12M 15 M 18M 5

10 Fixed Terms Standard Term Deposit and Controlled Money Account Term Deposit 1,000< 10,000< 30,000< 10,000 30,000 Maximum* Special Term Deposit 5,000< 5,000,000 2Y 3Y 4Y 5Y *The maximum amount is subject to acceptance of the Bank. The terms offered for our Term Deposit products may vary from time to time. Please contact one of the Bank s retail branches for details (for a Controlled Money Account Term Deposit, please contact any retail branch in Victoria and New South Wales only). For Term Deposits denominated in currencies other than AUD, the following terms and minimum balances apply: USD Standard Term Deposit HKD Standard Term Deposit CNY Standard Term Deposit CNY Special Term Deposit Fixed Terms 1,000< 30,000 30,000< Maximum* 5,000< 100, ,000< Maximum* 5,000< Maximum* 100,000< Maximum* 7D 1 M 2M 3M 6

11 USD Standard Term Deposit HKD Standard Term Deposit CNY Standard Term Deposit CNY Special Term Deposit Fixed Terms 1,000< 30,000 30,000< Maximum* 5,000< 100, ,000< Maximum* 5,000< Maximum* 100,000< Maximum* 4M 5M 6M 7M 8M 9M 10M 11M 12M *The maximum amount is subject to acceptance of the Bank. The terms offered for our Term Deposit products may vary from time to time. Please contact one of the Bank s retail branches for details. Section 2: General Information 1. What are the significant risks? The products offered in this PDS are low risk products. The significant risks that these products may involve include: 7

12 Unauthorised Transactions: an unauthorised transaction is one which is not authorised by the account holder. There is a risk that transactions not authorised by you may be conducted through your term deposit account. Accrued Interest: If funds are withdrawn prior to maturity of the investment, there is a risk that the accrued interest may be lost or reduced. Investing in foreign currency and foreign exchange fluctuations: there are risks associated with investing in a foreign currency. Foreign exchange fluctuations may adversely impact on your invested amount when converting currencies. You should use your own independent judgment in respect of currency conversions and should not reply on any advice, opinion or information provided by the Bank. Availability of funds: Funds and cheques deposited to your account will generally take time to clear and the availability of the funds should not be relied upon until such time as they are cleared. Foregone interest rate rises: You may not be able to take advantage of interest rate increases should interest rates rise during the term of your investment. 2. How do I access further information? Further information may be obtained from any branch or office of the Bank. Full contact details for the Bank are provided on the inside cover page of this document. Please also see our website at 3. Dispute Resolution Process Do you have a complaint or query? The Bank prides itself on the standards of service and fairness with which we treat you, our valued customer. However, if you feel we have fallen short of these ideals, these guidelines have been prepared to assist you to have your complaint or query dealt with speedily and effectively. When responding to complaints, we will endeavour to provide 8

13 reasons for the decision taken and adequately address the issues that were raised in the initial complaint. This is part of our effort to provide you with a higher quality of service and to help ensure our performance always meets your expectations. Who is eligible for this service? All of the Bank s customers may take advantage of the dispute resolution procedure described in this PDS. However, you should be aware that any reference of a complaint to the Financial Ombudsman Service is primarily limited to individuals and small businesses. A small business is defined as: a manufacturing business with less than 100 employees; or any other business with less than 20 employees. How to make a complaint? In the first instance you should contact the Bank on You should have all supporting documents or other evidence to support your grievance and consider how you would like the Bank to resolve the matter; If your complaint has not been resolved to your satisfaction within 24 hours, please contact us and ask to speak to the Manager of the Bank s Personal Banking Department. We expect that the complaint should be dealt with within 5 working days of reference to the Manager, although best endeavours will be used to resolve the complaint within 24 hours. Allowance should be made for cases that require the Bank to contact overseas offices (e.g. international transactions) or other banks; If your complaint still has not been resolved to your satisfaction within 5 working days, you are invited to contact the Bank s Complaint Coordinator (02) ; A response should be received within 7 working days; If the complaint remains unresolved 7 working days after reference to the Bank s Complaint Coordinator, you can complain to the Bank s external dispute resolution scheme, the Financial Ombudsman Service. The contact details of the Financial Ombudsman Service (FOS) Australia are as follows: 9

14 Financial Ombudsman Service Limited GPO BOX 3, MELBOURNE VIC 3001 Telephone: weekdays Fax: (03) , 9am to 5pm AEST/AEDT Website: 4. Customer Information and Privacy We generally collect personal information about you from you directly, but we may also collect your personal information from third parties including (if applicable) your employer (to confirm income and employment details), your accountant/tax agent, mortgage brokers and public registers including those provided by the Australian Securities & Investments Commission or the Personal Property Securities Register or State or Territory land and property registers. We collect personal information in order to: provide you with the products and services you request; provide you with customer support; monitor and evaluate our products and services; respond to your queries or requests for assistance; take measures to detect and prevent fraud and financial loss; administer our customer relationships, services, products, systems and business functions; comply with our legal obligations, including our obligations under applicable anti-money laundering and counter-terrorism financing laws, or a court/tribunal order; develop and research our products and services; conduct appropriate checks for credit-worthiness; maintain and develop our information technology systems, including the testing and upgrading of these systems; and provide you with information relating to our products or services that we believe may be of interest to you. If you do not provide us with your personal information, some or all of the following may happen: we may not be able to provide the requested products or services to you, either to the same standard or at all; we may not be able to provide you with information about products and services that you may want, including information about special promotions; or we may delay, block or refuse to make a payment or action an instruction relating to your account. 10

15 We may disclose your personal information to the following third parties: our related bodies corporate within the Bank of China group; credit reporting agencies or debt collecting agencies or your referees; credit providers, referees or persons with whom you transact; other financial institutions; our local Australian clearing agent bank; to service providers we engage to carry out or assist our functions and activities; to government or regulatory bodies or to law enforcement agencies with appropriate authority; to our professional advisers including lawyers and auditors, consultants; to your duly authorised representatives; and our service providers. See our Privacy Policy for further details. In certain circumstances we may be required to collect your name, address, date of birth, and other verification information and verifying documents under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). Our Privacy Policy, available at or from us on request, contains information about how you may access and correct the personal information that we hold about you, and how to lodge a complaint relating to our treatment of your personal information, and how we will deal with the compliant. We may disclose personal information overseas to our overseas related bodies corporate and service providers. It is not practicable for us to list every country in which such recipients are located but it is likely that such countries where we will disclose information to our related companies or branches will include Bahrain, Belgium, Brazil, Cambodia, Canada, China, Dubai, France, Germany, Hong Kong, Hungary, Indonesia, Italy, Japan, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, New Zealand, Panama, Philippines, Poland, Republic of Kazakhstan, Russia, Singapore, Sweden, Taiwan, Thailand, United Arab Emirates, UK, USA, Vietnam and Zambia. Our third party service providers may be located in British Virgin Islands, Cayman Islands, China, Hong Kong and New Zealand. We may notify you of other countries from time to time (including by updating our Privacy Policy or by giving you the information at the time of collecting your information). In the course of a multi-jurisdictional transaction we may also disclose your personal information to our lawyers and the financial institutions and service providers who assist us in processing the transaction who are located in relevant jurisdictions. 11

16 You may contact us about privacy by writing to: Compliance Officer, Legal and Compliance, Bank of China Ltd, York Street, SYDNEY, NSW Or by telephone on: (toll-free) or between 9:00am and 5:00pm Monday to Friday AEDT (not available on NSW public holidays and bank holiday). 5. Notice Provisions Type of Change Method of Notification Time Frame Any material changes to the information in this PDS and Terms and Conditions Changes of fees and charges Introduction of a fee or charge All other changes Website, written notice (including ) or advertisement in a prominent newspaper circulating nationally. Website, written notice (including ) or advertisement in a prominent newspaper circulating nationally. Website, written notice (including ) or advertisement in a prominent newspaper circulating nationally. Website, written notice (including ) or advertisement in a prominent newspaper circulating nationally. At least 30 days before the change takes effect. At least 30 days before the change takes effect At least 30 days before the change takes effect No later than the day the change takes effect Please see clause 16 of the Terms and Conditions for further details. By applying for a product, you consent to receive notice of changes to this PDS via our website, in writing (including ) or in an advertisement in a prominent newspaper circulating nationally. You may elect to receive notice of changes to the PDS solely in writing (other than by ) by contacting us at no additional cost. Section 3: Terms and Conditions Terms used in these terms and conditions are defined in the Definition section of this document (see clause 25 of the Terms and Conditions). The Terms and Conditions govern the use and operation of your term deposit accounts with us. If your application to open a term deposit account has been accepted, then you have agreed to be bound by these Terms and Conditions and other 12

17 sections of the PDS. It is important that you read these Terms and Conditions carefully and understand them fully. Please let us know if you have any questions. 1. How to open an account? 1.1 Overview Except for a Controlled Money Account Term Deposit, you can apply for a term deposit account at any retail branch of the Bank in Australia during business hours. Existing Customers who hold a term deposit account with the Bank may apply for a new term deposit in the same account via internet banking or over the counter. For a Controlled Money Account Term Deposit, you can only apply for a new Controlled Money Account Term Deposit or renew an existing Controlled Money Account Term Deposit at any retail branch of the Bank in the States of Victoria and New South Wales during business hours. All information contained in this booklet regarding internet banking shall be subject to the Bank s Internet Banking PDS and Terms and Conditions. You can obtain the current version of these documents on the Bank s website at any time or in the Bank s retail branches in Australia during normal business hours. When you apply for a term deposit, our branch staff will provide you with detailed information concerning current interest rates, terms and minimum deposit requirements. Existing Customers who hold a term deposit account with the Bank may obtain this information via internet banking when applying for a new term deposit. When making a deposit at any retail branch of the Bank in Australia, you may instruct the Bank to transfer monies from an existing account with the Bank or by providing the Bank with a cheque or cash. At the time of applying to open an account, the Bank is required to verify the identity of each signatory to the account. The Bank reserves the right to refuse any application to open an account if you fail to provide us with the required documents or if it is otherwise required by law. If you are an existing customer of the Bank who has already completed our customer identification process and your 13

18 identification documents are still valid, you may not be required to provide identification documents again. Except for a Controlled Money Account Term Deposit, the account holder and account signatory must be 16 years of age or older. Both Individual Customers and Non-individual Customers may apply for the Standard Term Deposit product and only Individual Customers may apply for the Special Term Deposit product. Only an Approved Law Firm may apply for a Controlled Money Account Term Deposit. Please refer to clause 1.2 in these Terms and Conditions headed Special legibility rules for Controlled Money Account Term Deposits for the eligibility criteria for a Controlled Money Account Term Deposit. If you open your account in more than one name, the following applies: Each account holder must fully comply with the terms and conditions applying to the account as if the account was held by one person; The joint account holders must sign an authority letter, in the form that we require, to inform the Bank the method by which you wish to operate the joint account. Unless we inform you otherwise when the account is opened: each account holder can operate the account independently of each other; the Bank may accept a cheque or other negotiable instrument which is payable to any one or more of the account holders; if one of the account holders dies, the Bank will transfer the balance of the account to the surviving account holder(s); each account holder can instruct the Bank to send account statements or request that the Bank to change their contact details. The Bank is not liable for any loss or damage arising from or in relation to acting on the instructions given by any account holder in good faith, unless it is proved that the Bank was grossly negligent. 14

19 1.2 Special eligibility rules for Controlled Money Account Term Deposits A Controlled Money Account Term Deposit may only be opened by an Approved Law Firm in the States of Victoria and New South Wales. We retain the discretion as to whether to accept an application for a Controlled Money Account Term Deposit. All authorised signatories for a Controlled Money Account Term Deposit must be 18 years of age or older and must only be person or persons who are permitted to operate a CMA pursuant to the applicable law that regulates CMA. Approved Law Firms that apply for a Controlled Money Account Term Deposit may be asked to provide a copy of their client s written direction to invest the funds in a Controlled Money Account Term Deposit. We may also require an Approved Law Firm to provide additional information (to be specified by us) before opening a Controlled Money Account Term Deposit. 2. Currency Options The Bank offers multi-currency options for its term deposit accounts except the Controlled Money Account Term Deposit. The Standard Term Deposit accounts may be maintained in AUD, HKD, CNY and USD. Special Term Deposit accounts may be maintained in AUD and CNY. The Controlled Money Account Term Deposit must be denominated in AUD. 3. Payment of Interest The interest rate that applies to your term deposit may differ depending on the currency, term and amount of the investment. The interest rates that apply and the level of investment amount, the type of currency and the term to which they apply are set by the Bank and may change at any time. Current interest rates are available by visiting any of the Bank s retail branches in Australia (for the Controlled Money Account Term Deposit, please visit our retail branches in the States of Victoria and New South Wales only). 15

20 Additionally, the applicable interest rates for Standard Term Deposit and Special Term Deposits are available on our website. The interest rate applicable to your term deposit account will be our prevailing interest rate at the time your term deposit account is opened or renewed. The interest rate is a fixed rate that will not change during the agreed term of your account unless you withdraw the deposit before the end of that term. The interest rate is set on the date on which your application is received. Example Calculation of interest How we calculate interest Example Term deposits denominated in AUD or HKD We calculate interest daily by multiplying the balance of your deposit by the applicable interest rate and dividing the result by the number of days in 365 days. You deposit AUD10,000 for one month from 01/08/2015 to 31/8/2015 at 2.00% p.a., then the interest you earn on the maturity date is calculated as: (AUD10,000 x 2.00%p.a* x 31)/365 = AUD Term Deposits denominated in USD or CNY We calculate interest daily by multiplying the balance of your deposit by the applicable interest rate and dividing the result by the number of days in 360 days. You deposit CNY10,000 for one month from 01/08/2015 to 31/08/2015 at 2.00% p.a., then the interest you earn on the maturity date is calculated as: (CNY10,000 x 2.00%p.a. x 31)/360 =CNY17.22 *These examples are for illustrative purposes only* You should note that the actual interest payable will vary depending on the type of term deposit, the currency in which your funds are denominated, the amount you invest, the term of your term deposit and the applicable interest rate. Your term deposit will start earning interest from the date on which we receive your deposit. The interest is calculated daily and paid on the maturity date. On the maturity date, for our term deposit products other than the Controlled Money Account Term Deposit, you can choose to have your interest: 16

21 credited into a nominated account with the Bank or an account held at another financial institution; or added to a new Term Deposit; or paid to you by bank cheque or cash at one of our retail branches in Australia. Except for the Controlled Money Account Term Deposit, you can also transfer the interest and principal together via internet banking. Before the Controlled Money Account Term Deposit is closed, on each maturity date: any interest accrued will be added to the principal; and if your maturity instructions are not received on or before the maturity date, your Controlled Money Account Term Deposit (including the accrued interest, less any fees, charges and applicable Tax incurred) will be automatically renewed for a further term which will be the same length as the term just ended, at an interest rate applicable to the Controlled Money Account Term Deposit at the date of renewal; and withdrawal of the principal and any interest accrued can only be made by way of bank cheque or electronic funds transfer as directed by you. Other forms of withdrawal (including cash withdrawals, ATM withdrawals or transfers and telephone banking withdrawals or transfers) are prohibited. Fees and charges may apply. Please refer to the Schedule of Fees and Charges for further information. We may not pay you interest on your term deposit or we may pay less interest if you choose to make a withdrawal prior to the end of the term. For more details, please refer to section 6, Part 3 of this booklet. 4. Foreign Exchange Transactions If you instruct the Bank to convert one currency into another currency before you deposit the funds into your account or withdraw from your account, the applicable exchange rate for the currency conversion is the rate agreed between you and the Bank, usually the spot rate quoted by the Bank at the time of exchange. 17

22 The Bank only accepts currency conversion requests during normal business hours. For the operating hours for foreign exchange transactions conducted via internet banking, please refer to the Bank s Internet Banking PDS and Terms and Conditions for details. The Bank may decline a currency conversion request when there are insufficient notes of the relevant currency available at the time of the request. 5. Fees and Charges The Bank does not charge service fees for over-the-counter services. However, you will be charged other applicable fees and charges. For further details, please see the Bank s Schedule of Fees and Charges. You can obtain a copy of the Schedule of Fees and Charges from any one of the Bank s retail branches in Australia or from our website for no charge. The Bank may debit your account with government charges, duties and taxes relating to your account. If you do not provide us with your Tax File Number (TFN) or Australian Business Number (ABN), the law requires us to withhold tax from your interest payment at the rate provided by the Australian Taxation Office (ATO).You should seek independent professional advice in relation to your own taxation issues. If the bank fails to collect a fee which it is entitled to, the Bank is not taken to have waived its right to collect the fee for the same type of transaction in the future. 6. Early Withdrawal You may withdraw amounts from your term deposit account at any time. For our term deposit products other than the Controlled Money Account Term Deposit, a full withdrawal service is available over the counter at any one of the Bank s branches in Australia during business hours and via internet banking 24/7 (except for currency conversions). Partial withdrawal service is only available over the counter at one of Bank s branches in Australia during business hours. For our Controlled Money Account Term Deposits, you may make a full or partial withdrawal only by bank cheque or electronic funds 18

23 transfer to your nominated account. If you take any money out of your term deposit account prior to the maturity of the term over the counter at any one of the Bank s retail branches in Australia, the accrued interest may be lost or reduced in accordance with the following: 6.1 For withdrawal of the entire Standard Term Deposit amount or the entire Controlled Money Account Term Deposit amount prior to maturity of the term, the applicable interest rate is equivalent to the applicable interest rate for the Bank s Demand Deposit Account at the time when you make a withdrawal. For withdrawal of the entire Special Term Deposit amount prior to the maturity of the term, all accrued interest will be forfeited. 6.2 For a partial withdrawal of a Standard Term Deposit or the Controlled Money Account prior to the maturity of the term, all accrued interest for the withdrawn amount is calculated on the basis of interest of the Bank s Demand Deposit Account. For a partial withdrawal of Special Term Deposit prior to the maturity of the term, all accrued interest for the withdrawn amount will be forfeited. Interest is payable on the balance of your term deposit account after a partial withdrawal in accordance with the following: if the remaining balance of the Standard Term Deposit or the Controlled Money Account Term Deposit after a partial withdrawal meets or exceeds the minimum balance for the relevant currency of Standard Term Deposits or the Controlled Money Account Term Deposit (as set out in Section1, Part 2 of this booklet), that balance will continue to earn interest at the same standard interest rate which applied when the term deposit was opened or renewed (as the case may be). For further information in relation to the interest rate and the method of calculating the interest, please contact one of our branches. if the remaining balance of the Standard Term Deposit or the Controlled Money Account Term Deposit after a partial withdrawal falls below the minimum balance for the relevant currency of your term deposit (as set out in Section1, Part 2 of this booklet), you must immediately withdraw the entire balance of your term deposit. Interest payment will be subject to section 6.1 of these Terms and Conditions. 19

24 If the remaining balance of the Special Term Deposit after a partial withdrawal meets or exceeds the minimum balance for the relevant currency of Special Term Deposit (as set out in Section1, Part 2 of this booklet), that balance will continue to earn interest at the same special interest rate which applied when the term deposit was opened or renewed (as the case may be), otherwise the bank has the right to close the Special Deposit Account and return the remaining balance to you. For term deposits other than a Controlled Money Account Term Deposit, if you withdraw the full amount from the term deposit prior to the maturity of the term via internet banking, the Bank s Internet Banking PDS and Terms and Conditions will also apply to the transaction. If you wish to withdraw more than AUD5, cash in one transaction, please notify the Bank 24 hours in advance. If you wish to make a withdrawal in a foreign currency (other than AUD), it will be subject to the availability of foreign currency notes. 7. Maturity For term deposits other than a Controlled Money Account Term Deposit, at any time on or before the maturity date, you may provide the Bank with instructions for the term deposit to be: paid to you in cash; paid to you by bank cheque; credited to a nominated account either with the Bank or with other financial institutions; or extended for a further term. For term deposits other than a Controlled Money Account Term Deposit, at the maturity date, you may add or subtract funds from your principal and interest and reinvest that amount for a further term. For term deposits other than a Controlled Money Account Term Deposit, if your maturity instructions are not received on or before the maturity date, the Bank will automatically renew your Term Deposit (including any accrued interest if applicable) for a further term which will be the same length as the term deposit just ended, at an interest rate applicable to the term deposit at the date of the 20

25 renewal. For the Controlled Money Account Term Deposit, before the account is closed, on each maturity date: Any interest accrued will be added to the principal; and if your maturity instructions are not received on or before the maturity date, your Controlled Money Account Term Deposit (including the accrued interest, less any fees, charges and applicable Tax incurred) will be automatically renewed for a further term which will be the same length as the term just ended, at an interest rate applicable to the Controlled Money Account Term Deposit at the date of renewal; and withdrawal of the principal and any interest accrued can only be made by way of bank cheque or electronic funds transfer as directed by you. Other forms of withdrawal (including cash withdrawals, ATM withdrawals or transfers and telephone banking withdrawals or transfers) are prohibited. If the maturity date falls on a day which is not a Business Day, the maturity date will be extended to the next Business Day. 8. Access the Account For term deposits other than a Controlled Money Account Term Deposit, the methods of access include: over the counter at any one of the Bank s retail branches in Australia; internet banking. Please refer to the Bank s Internet Banking PDS and Terms and Conditions for more information. For a Controlled Money Account Term Deposit, withdrawal of the principal and any interest accrued can only be made by way of bank cheque or electronic funds transfer as directed by you. Other forms of withdrawal (including cash withdrawals, ATM withdrawals or transfers and telephone banking withdrawals or transfers) are prohibited. 21

26 9. Trust Accounts You must inform us if you open an account as a trustee and give us the full name of the trust. You must provide sufficient evidence to satisfy the Bank that you have the necessary power and authority to open and operate the account. For example, you must provide the Bank with the original document or a certified copy of the document creating the trust if requested by us. If you are the trustee(s) of a trust, then: the Terms and Conditions and other sections of this PDS will bind you both personally and as trustee(s) of the trust; you represent and confirm that you are the only trustee(s) of the trust, the trust is validly constituted and you as trustee(s) have power to enter into the Terms and Conditions with the Bank; and you agree and confirm that you will comply with your duties and obligations as trustee(s). The Bank may debit the account for the applicable fees and charges. If you are opening a Controlled Money Account Term Deposit, we may, if required by law, request that you provide us with a certified true copy of the written direction from your client authorising the deposit of the beneficiary client's money into the Controlled Money Account Term Deposit. You acknowledge that you must open a separate Controlled Money Account Term Deposit for each beneficiary client who directs you to open a Controlled Money Account Term Deposit and that you cannot pool the controlled money of different beneficiary clients. 10. Powers of Attorney If an account is to be operated (including accessing information, transferring money into/out of the account and/or closing the account) by an attorney on your behalf; you and the attorney must: (a) complete and sign any documents we require; and (b) provide us with any other documents or information we require. If you appoint an attorney to operate your account, you must ensure that your attorney complies with the conditions of the account. You must notify us in writing if the power of attorney is revoked. The Bank 22

27 will not be liable for any damages or losses caused by the unauthorised access by the attorney should the attorney have been validly appointed and no revocation of the power of attorney has been received by the Bank. 11. Authority to Operate an Account When a new account is opened, you must inform the Bank of each person who is at least 16 years of age (18 years of age if it is a Controlled Money Account Term Deposit) and is authorised to operate the account (each an authorised signatory ). Specimen signatures will be collected by the Bank for each authorised signatory to your account. We will also verify the identity of the authorised signatories. You should make sure that any authorised signatory has read and understood the Terms and Conditions and it is your responsibility to ensure that each authorised signatory will comply with the Terms and Conditions. If an authorised signatory does not comply with the Terms and Conditions, you will be deemed not to have complied with the Terms and Conditions. The Bank will not be liable for any damages or losses caused by the unauthorised access by the authorised signatories should the signatories have been validly appointed and no revocation of the authority in writing has been received by the Bank. If you want to cancel the authority of an authorised signatory, you must inform us in writing. You remain responsible for all transactions made by the authorised signatory until your cancellation of the authority has been received by the Bank. 12. Closing the Account You have the right to close the account by visiting one of our retail branches in Australia during normal business hours to make such a request (or our retail branches in the States of Victoria or New South Wales (as applicable) for the Controlled Money Account Term Deposit). The Bank reserves the right to close your account at any time provided that we give you 30 days prior notice in writing. One of the reasons that the Bank may close your account is if there is a debit balance in your account and you do not have an overdraft facility. In 23

28 this situation, the Bank will give you 30 days to bring the balance in credit from the date you first incur any debit balance. Failure to do so will result in the closure of your account. We may close or freeze your account immediately if we reasonably believe that a fraudulent act has or may have occurred in relation to your account or if required by law (whether Australian or international law, and including any laws relating to anti-money laundering or counter-terrorism financing) or by a government regulator. If the account has a credit balance at the time that it is closed, that balance will be paid to you. If the account has a debit balance at the time it is closed, that balance, including any debit interest or outstanding fees, will be due and payable by you to us upon demand. 13. Company Search If you are a sole trader, a partnership or an incorporated company and you wish to open an account with the Bank or change your business or company name, directorship or company structure, the Bank will carry out a business name search or company search. The account will not be opened until this search is completed and the Bank is satisfied that the result of the search meets the Bank s requirements. You will be charged for the search fee. Please refer to the Schedule of Fees and Charges for details. 14. Fax and Indemnity The Bank may accept instructions from you by fax or to operate the account if you have entered into an agreement to this effect with the Bank. The acceptance of instructions from you by fax or will be subject to the Bank s absolute discretion. You authorise us to rely upon and act on your behalf in accordance with any fax or instructions. However: (1) in the case of fax instructions, the instructions must be signed by the authorised signatories and the signatures appear reasonably similar to the specimen signature of your authorised signatories; (2) in the case of instructions, the instructions must attach a scanned copy of your written instructions signed by your authorised signatories. We will not be held liable for any 24

29 losses or damages if we acted upon your instructions in good faith. We reserve the right, at our discretion, to request additional identification information or information relating to any transaction or to decline to carry out any transaction and we shall not be liable to you for any loss or damages arising from requesting more information from you or non-completion of any transaction. It is your responsibility to notify us in writing of any changes in relation to your authorised signatories and to provide us with the specimen signature if an authorised signatory is to be added to your account. 15. Statements and Notices 15.1 Term Deposit Confirmation/Statements Term deposit account holders are normally provided with a confirmation when the term deposit account is established. Upon receiving your request, the Bank can also provide monthly or other periodic statements Joint Account Confirmation and Notices Generally, the Bank will mail only one copy of the term deposit confirmations and notices to the correspondence address of the account (unless otherwise required by law). Once the confirmation and notice has been sent to the correspondence address of the account, all account holders are regarded as having received them End of Financial Year Notice The Bank will issue a written notice to you shortly after the end of each financial year to notify you of the amount of interest paid on your accounts with the Bank for the financial year. You may need this information to meet your obligations under taxation laws. 16. Changing these Terms and Conditions We may from time to time change any of these Terms and Conditions. For example, we may: add, change or remove fees or charges; 25

30 add, change or remove concessions or benefits; or adopt or implement any legal requirement, decision, recommendation, regulatory guidance or standard of any court, tribunal, ombudsman service or regulator. For customers with an account with the Bank, we will notify you via our website, in writing (including ) or by advertisement in a prominent newspaper circulating nationally at least 30 days before we introduce or increase a new fee or charge or make a material change to these Terms and Conditions. For other changes to these Terms and Conditions, we will notify you via our website, in writing (including ) or by advertisement in a prominent newspaper circulating nationally no later than when the change takes effect. If you are not happy with any changes, you may choose to close your accounts held with the Bank in accordance with these Terms and Conditions. By applying for a product, you consent to receive notice of changes to this PDS via our website, in writing (including ) or in an advertisement in a prominent newspaper circulating nationally. You may elect to receive notice of changes to the PDS solely in writing (other than by ) at any time by contacting us at no additional cost. 17. Consumer Protection This service when supplied to you as a consumer comes with a nonexcludable warranty or consumer guarantee under consumer protection laws that it will be carried out with due care and skill and be reasonably fit for the intended purpose(amongst other consumer guarantees). If we breach any of those warranties, you may be entitled to compensation. When you are not a consumer under consumer protection laws, our liability for loss or damage is limited to re-supplying the service to you or paying the costs of having the service resupplied to you. When you are a consumer under consumer protection laws, our liability is limited in this way only to the extent permitted by those laws. 18. Financial Claims Scheme You may be entitled to payment under the Federal Government s Financial Claims Scheme. Payments under the Financial Claims 26

31 Scheme are subject to a limit for each depositor. Information about the Financial Claims Scheme can be obtained from the APRA website at and the APRA hotline on Investment considerations The Bank does not take into account labour standards or environmental, social or ethical considerations for the purpose of selecting, retaining or realising any investment. 20. Liabilities To the extent permitted by law, we will not be liable to you for any loss due to: if, through no fault of our own, the balance in your account is insufficient to cover a transaction; any instructions given by you not being sufficiently clear; any failure by you to provide correct information; any failure by you to meet any legislative requirements that may be imposed in respect of outward remittances; any failure due to events outside our reasonable control; any systems failure or industrial dispute; any indirect, special or consequential losses; our taking any action required by any government, federal or state law or regulation or court order; or anything specifically excluded or limited elsewhere in this PDS. 21. Third Parties Rights We may assign any of our rights under this agreement to any other interested person or business. We will ensure that you will be able to exercise the same rights as against the assignee as you could against us under these Terms and Conditions. The rights granted to you under this agreement are personal to you and are incapable of being transferred except with our consent. You must not assign your rights under this agreement without our consent. 27