The Australian Military Bank Income Plus is a term deposit that lets you earn interest in a tiered manner. The bank lets you choose between renewing your deposit and withdrawing your funds upon maturity. To open this account you have to invest a minimum of $1,000. The bank pays interest every month.
What are the features of the Australian Military Bank Income Plus?
- Minimum investment. The least you can invest in an Income Plus term deposit is $1,000.
- Interest rates. The Income Plus term deposit lets your money earn interest through a tiered system. As per current rates, investing $1,000 to $49,999 for three to five months earns 1.50% p.a. Term deposits of six to 11 months earn 1.50% p.a. If you open a 12 months deposit you’ll earn 1.55% p.a. interest. The bank offers slightly better rates if you invest $50,000 and above.
- Calculating and paying interest. The bank calculates interest on the daily closing balance. It pays interest every month irrespective of the term you choose.
- Increasing deposit amount. The only time you can add extra funds to your deposit is when it matures, which you’ll have to do by renewing it. The bank holds the right to offer revised rates at this point.
- Withdrawal restrictions. When you open this term deposit you understand that withdrawing funds before your deposit matures is not a feasible option. While you may request for an early redemption, granting your request is up to the bank’s discretion. If the bank honours your request it may pay interest at a lower rate.
- Options at maturity. When your term deposit matures you can ask the bank to transfer the money to a nominated bank account. The bank lets you collect a cheque, which you should do before your deposit matures. You can also renew your deposit when it matures. One week before your deposit matures the bank tries contacting you to verify your instructions.
- Automatic renewal. The bank may renew your term deposit in case you don’t provide specific instructions surrounding what to do after the term expires. If this happens then the original deposit’s terms and conditions and interest rates may not apply. If the renewal takes place without your instructions the bank sends you a confirmation about the new deposit. It gives you seven days to issue instructions if you don’t want to proceed with the new deposit.
- Competitive interest rate
- Interest calculated daily and paid monthly
- Low minimum investment
- Only available to members
How do I apply for the Australian Military Bank Income Plus?
When you open the Income Plus account you agree to become an Australian Military Bank member. To apply, you can walk into any Australian Military Bank branch, you can get started over the phone and you can submit an online application. Make sure you meet the required eligibility criteria:
- Minimum age. You are at least 18 years of age
- Residency requirements. You are an Australian citizen or a permanent resident of Australia.
- Depository requirements. The least you can invest in this account is $1,000.
Completing the application requires that you provide different types of information:
- Identification. Non Australian Military Bank members have to go through an identity verification process, as required by the law. You can complete this process online by using your Australian driver’s license or Medicare card.
- Tax file number. If you provide your tax file number you can be sure that the bank will not deduct withholding tax from the interest you earn.
- Other information. The application also requires your name, residential address, email address and phone number.
The bank lets you save your online application and get back to it later, which can be useful if you don’t have all the required information close at hand. Upon submitting your application you get a reference number. This comes in handy when tracking your application’s status.