Arab Bank Fixed Term Deposit Review, Rates & Information

Product details

The Arab Bank offers Australians a flexible term deposit account with no minimum balance requirement and terms for a quick investment period or for when you have a longer savings goal in mind. Interest rates are competitive, and can be paid into the account to further its growth with compound interest. With transactions that are free from any fees, your savings will grow faster than you hoped for.

Product Name: Arab Bank Fixed Term Deposit Account

1 month interest rate: 1.50%

3 month interest rate: 2.40%

4 month interest rate: 2.40%

6 month interest rate: 2.50%

9 month interest rate: 2.55%

12 month interest rate: 2.55%

24 month interest rate: 2.60%

36 month interest rate: 2.70%

48 month interest rate: 2.80%

60 month interest rate: 2.90%

Min Deposit: $1

Joint Application: No

Minimum Age Requirement: 18

Covered by Government Guarantee: No

What are the features of the Arab Bank Fixed term deposit?

Term deposits are a banking product structured to encourage you to save your money by limiting access and offering higher rates. Before settling on one account for your savings, compare the features of this type of account with various banks against what is being offered by Arab Bank:

Minimum balance. You can open a term deposit with an opening balance of $2,000. You also have the option of making the deposit in Australian dollars or with one of the following; United States dollar, Great British Pound, Euro, or Swiss Franc.
Choice in terms. The terms offered by Arab Bank range in length from one month to five years for those in Australian dollars or one to six months for other currencies.
Interest rates. The fixed interest rates vary depending on the amount you invest and the length of terms you choose. As you invest more for longer periods you will see a higher rate of return on your investment.
Interest payments. For terms of two years or less, interest is paid at maturity. For longer terms they can be paid yearly or at maturity. You can collect those interest payments by having them deposited into a separate banking account, in cash or by cheque at an Arab Bank branch or added to your term deposit balance.
Interest calculation. Interest is calculated on the daily balance.
Accessibility. You can access your term deposit and make transfers through online banking. The term must be linked to an Arab Bank transaction account which will serve as your nominated account to receive interest payments.
Account maturity. You are given the option of rolling your term deposit into a new one when it reaches the maturity date.
Early withdrawal. If you ask for and are granted an early withdrawal of your term deposit, the interest rate will be reduced by a percentage based on the percentage of time left on your original terms. For example, if less than 30% of your chosen time period has elapsed than your interest rate is reduced by 100%. If over 80% of the terms have passed it is reduced by 30%.

Pros

Highly competitive interest rate
Interest calculated daily
Terms from 1 month to 5 years available

Cons

For terms of two years or less, interest is paid at maturity

How do I apply for the Arab Bank Fixed term deposit account?

If you are considering applying for the Fixed Term Deposit Account you will first need to contact a representative of Arab Bank. As they are limited to only ten branches in Australia, concentrated in Melbourne and Sydney, you will first want to make sure that you are eligible for this account before making the trip:

Minimum age. While Arab Bank makes no mention of an age requirement for this account, minors may need have permission from a parent or guardian.
Residency requirements. Account holders will have to be residents of Australia with a residential address.
Depository requirements. The minimum amount required to open this account is $2,000 Australian dollar.

When applying for any banking product in Australia, the following documentation will be asked for:

Tax file number. You are under no obligation to provide Arab Bank with your tax file number (TFN) or exemption code. By not providing it however, your interest earnings will be subject to withholding tax at the highest marginal rate.
Identification. Arab Bank is required by law to verify the identity of all applicants before issuing an account in their name. This is commonly done using information that is found on your driver’s licence, passport, or Medicare card.
Account information. The Fixed Rate Term Deposit requires that you have a separate account from which transfers can be made. You will need to provide the account number before your term deposit can be activated.

The information provided will be verified by Arab Bank first before your funds are transferred into your new Fixed Rate Term Deposit Account. You will then be issued a Term Deposit Certificate outlining the details of your account.