Module: General Practice
Q7: If a domestic term deposit matures and the proceeds remain unpaid, the unclaimed amount will attract an interest rate applicable to a savings account or the contracted rate on the matured deposit, ……
✅ Correct Answer: B
For unpaid proceeds of a matured domestic term deposit, the amount attracts the savings account rate or the contracted rate on the matured deposit, whichever is lower.
This rule prevents banks from having to pay high Interest Rates on Deposits for funds that are effectively lying idle post-maturity.
This rule prevents banks from having to pay high Interest Rates on Deposits for funds that are effectively lying idle post-maturity.