The customer does not have to provide notice to the bank to break the deposit before maturity, however, a penalty charge is applicable.
The deposit can only be broken at the issuing branch.
CDs can be used as collateral against loans at RBC Royal Bank, and at other banks, but the latter is rarely done.
Interest is paid at the end of the period or at specified intervals.
Interest is calculated daily and is paid at maturity.
The interest rate that is applicable on the term deposit is relevant during the life of the deposit – it will not be adjusted if term rates change. If, at maturity, the customer wishes to reinvest the funds, they would be reinvested at the new rate.
At maturity, principal and interest are rolled automatically, unless the customer specifies instructions.