When you opt for early redemption of your FTD investment, the penalty is calculated based on the principal amount you initially invested.

For instance, if you invested $10,000 and chose to redeem your Fixed-Term Deposit early, a 5% penalty would amount to $500, resulting in a total repayment of $9,500. This penalty is deducted from your principal before the remaining balance is returned to you. Therefore, understanding this penalty structure is essential for customers who may be considering the timing of their redemption.