Withdrawing funds from your ASB Term Fund before its maturity date is generally not permitted, as the balance is designed to be held until the end of your chosen term. However, there are specific conditions under which an early withdrawal may be considered.
Understanding ASB Term Fund Withdrawal Conditions
The ASB Term Fund is structured as a fixed-term investment, meaning your funds are typically locked in for the entire duration of the term you've selected. This structure allows the fund to offer specific benefits and returns based on the commitment to hold the investment until maturity.
Early Withdrawal in Exceptional Circumstances
While the general rule is no early withdrawals, a portion or the entire balance of your ASB Term Fund account may only be withdrawn before maturity in exceptional circumstances that are approved by ASB. These are not standard withdrawal options and require a specific assessment and approval process.
Associated Costs: Break Fees
Should an early withdrawal be approved under exceptional circumstances, a break fee will be charged. This fee compensates for the early termination of the investment and is calculated based on various factors. Understanding these costs is crucial before requesting any early access to your funds.
- Calculating Break Costs: To get more details on how these fees are calculated, you can find information on the official ASB Term Fund page. Learn more about calculating break costs here.
Key Considerations for Your ASB Term Fund
It's important to plan your investment carefully, considering the fixed nature of the ASB Term Fund.
| Condition | Details |
|---|---|
| General Rule | No part of your ASB Term Fund account balance can be withdrawn before its maturity date. |
| Early Withdrawal | Only possible in exceptional circumstances that are specifically approved by ASB. |
| Associated Costs | If an early withdrawal is approved, a break fee will be charged. This fee is dependent on the terms and the prevailing interest rates at the time of the withdrawal request. |
| Maturity | Your full balance, including accrued earnings, becomes available at the end of your chosen investment term. |
By understanding these conditions, you can better manage your expectations and financial planning concerning your ASB Term Fund.
