No Pro-Rated Interest Payment for Premature Withdrawal of Fixed Deposit


Mr Veera (not his real name) and his wife had maintained a Fixed Deposit (FD) of RM500,000. with Bank D for a tenure of 12 months since 2017.The FD was automatically renewed in year 2018 to mature on 18/5/2019.

On 18/09/2019, Mr Veera had uplifted the FD prematurely with anticipation that he would receive the pro-rated accrued interest payment for the completed months.

However, he was informed by Bank D’s Relationship Manager of the bank that the terms and conditions governing the rule on FD premature withdrawal had changed since 01/11/2018 wherein there will be no payment of interest for any early upliftment of FD.

Mr Veera was upset that the bank had failed to give proper notification on the changes of the terms and conditions. He wanted the bank to pay him the pro-rated interest amounting to RM6,284.93. The bank, however, refused his claim.


Investigation and Findings


The Case Manager investigated the claim and was informed by the bank that an announcement was published on 11/10/2018 under Important Notice on “Zero Interest/Profit for Early Withdrawal and Amendment of Terms and Conditions for FD and Fixed Return Income Account-i” on its  online banking portal as well as  its website.

The bank further claimed that Mr Veera maintains an online banking account and he would have received the notices on the changes in the ruling online.

Mr Veera, being a Preferred Customer of the bank, claimed that he seldom utilised the online banking facility and alleged that he was not well informed by the bank’s Relationship Manager as he did not receive any telephone call reminder or Short Message Service (SMS).



During mediation session, the Case Manager highlighted to the bank that Mr Veera, being a Preferred Customer was not fully appraised of the change in the ruling related to the premature FD withdrawal.

The bank considered the observation by the Case Manager and agreed to offer a settlement amount of RM4,000 on goodwill basis. Mr Veera accepted the offer and the case was settled.