Offering higher competitive interest rates than their standard term deposit, the Advance Notice Term Deposit is a versatile savings product with a fixed rate over the investment term. The only other major difference is that you get more flexibility by being able to break your terms when necessary by providing the bank with a 31 day notice.
What are the features of the ANZ Advance Notice Term Deposit?
The structure of a term deposit account makes it an ideal product to secure your savings. With the Advance Notice Term Deposit there are special features added that you should take into consideration when shopping around for an account that offers you a guarantee on your return:
- Fees. With ANZ’s Advance Notice Term Deposit there are no set-up, service, or monthly management fees.
- Term options. You are given the choice of terms ranging from three months to five years.
- Minimum investment amount. You are required to make a minimum deposit of $5,000 with this savings product.
- Interest rates. The fixed interest rates are competitive, and grow higher when you choose longer terms for your investment.
- Interest payment frequency. Depending on the length of terms of you choose, you can set up your account to receive interest payments monthly, quarterly, half yearly, annually or at maturity only. In some instances you will note a slight reduction in the interest rate if you choose to receive your payments with more frequency.
- Interest payments. All payments made to you from this account, both principal and interest, will be by cheque or credit to another ANZ account. The interest is calculated on the daily closing balance but will not be compounded.
- Account maturity. You will be asked upon applying whether you intend to reinvest your term deposit at maturity or withdraw the funds. These instructions can be changed at any time up to seven days after your new terms have taken affect. If you do reinvest, the interest rate may change to reflect the prevailing rate at that time.
- Early withdrawal. With this account you are permitted to make a whole or partial withdrawal before maturity so long as you provide ANZ with at least 31 days notice. The interest rate will be adjusted according to the percentage of the term that was fulfilled, while any funds left in the account will still continue to earn interest at the same fixed rate. You may only make a partial withdrawal if that leaves the principal balance at $5,000 or more. You are also charged a $30 administration fee for an early withdrawal.
- Lock in your money with the certainty of a fixed rate
- Wide range of investment terms
- No monthly fees
- Large minimum investment amount
- 31 days notice required if you'd like to access it early
How do I apply for the ANZ Advance Notice Term Deposit?
If you are not already an ANZ customer you will need to visit a branch or call them direct in order to apply for this account. Existing ANZ customers can visit the ANZ website to begin filling out an online application form. This should take about ten minutes to complete, but before beginning check to make sure that you meet the eligibility requirements:
- Minimum age. Applications are accepted from individuals aged 12 or older.
- Residency requirements. In order to open an Advance Notice Term Deposit you must be an Australian resident with a residential address.
- Depository requirements. You must be able to make a minimum opening deposit of at least $5,000.
You will find that filling in the application forms is easier if you have the following documentation available:
- Tax file number. Your tax file number (TFN) or exemption is asked for with interest earning accounts so that they bank is able to apply the correct withholding tax rate to your earnings. It is not obligatory to offer this information, but if you don’t you could find that you are being taxed at the highest marginal rate.
- Identification. In order to confirm your identity you will be asked for information from your driver’s licence, passport or Medicare card.
- Account information. The account name and number for another ANZ banking product is required in order for you to transfer your deposit and receive your interest payments.
The Advance Notice Term Deposit is activated once the opening funds have cleared into the account. You will then begin to receive your interest payments as you set forth in your account opening instructions.