Fixed deposits are contracts binding between the customer and the bank where the customer agrees to invest a volume of money with the bank for an agreed period of time and the bank agrees to provide a return to the customer at an agreed interest rate.

Banks are able to pay the interest based on our ability to lend that money and earn an interest on it.

The terms are agreed between the customer and the bank prior to entering the contract and are therefore not dictatorial or more favourable to either party.

The terms also dictate penalties if either party want to break this contract.  This is standard to any business practise and is no different to banks.

After reviewing this specific case we have agreed to release the term deposit to the client and are reviewing our stance in regard to the breaking of term deposit contracts.