The Australian Military Bank Teen Plus term deposit, as the name suggests, is meant especially for those less than 17 years of age. The money in your term deposit earns interest in a tiered manner. You earn interest annually or at maturity, depending on it’s term. Upon maturity of your deposit you have the options of renewing it and withdrawing your money.
What are the features of the Australian Military Bank Teen Plus term deposit?
- Minimum amount. The least you require to open an Australian Military Bank Teen Plus term deposit is $500.
- Interest rates. The interest you earn depends on the amount of money you invest as well as the term of the deposit. The interest the bank offers remains subject to change. Once you open a term deposit, the interest remains the same through the course of the term. Currently, investing $1,000 to $49,999 for three to five months earns 2.60% p.a. Deposits of terms from six to eight months or nine to 11 months earn 2.70% p.a. If you open a term deposit for 12 months you’ll earn 2.75% p.a. For deposits from 13 to 15 months and 16 to 18 months, you’ll earn 2.80% p.a. Interest increases to 2.90% p.a. for terms from 19 to 24 months. For investments of $50,000 and above, the bank offers marginally better rates.
- Calculating and paying interest. Calculation of interest happens on an everyday basis. If the term of your deposit is up to or equal to 12 months the bank pays interest when the deposit matures. You’ll get interest payouts annually if the term of your deposit exceeds 12 months.
- Increasing amount of deposit. You cannot increase the amount of your deposit before maturity. Once your deposit matures you can add funds and renew your deposit.
- Restrictions. If you open a Teen Plus term deposit you agree that you are not allowed to withdraw money from the account before expiry of the term. You may request to redeem your deposit ahead of time. In case the bank approves your request the interest you receive will be lower than previously agreed upon.
- Maturity options. The bank lets you collect a cheque before your deposit matures. You can get the bank to transfer the funds to a nominated bank account. Renewing your term deposit is also an option. One week before the deposit matures the bank tries contacting you to verify your instructions.
- Automatic renewal. The bank might renew your term deposit if it does not receive any instructions from you. Upon renewal, the new term deposit may have a different interest rate and the terms and conditions might also differ. If the bank renews a term deposit in this manner it sends a verification of the new deposit by mail. It then gives you seven days to issue instructions to the contrary.
- Wide range of term options
- High interest rates
- Auto renewal
How do I apply for the Australian Military Bank Teen Plus term deposit?
You can apply for the Teen Plus term deposit by visiting any Australian Military Bank branch, over the phone and online. Before you apply establish if you meet the required eligibility criteria:
- Maximum age. You are less than 17 years old.
- Residency requirements. You are an Australian citizen or a permanent resident of Australia.
- Depository requirements. The minimum amount required to open this term deposit is $500.
- Other requirements. You should have an operational Australian Military Bank Junior Saver Account.
Completing the application requires you to provide different types of information:
- Identification. You can verify your identity online using your Medicare card or your driver’s license.
- Tax file number. Provide your tax file number if you don’t want the bank to deduct withholding tax from the interest you earn.
- Other information. The application requires your date of birth, residential address, phone number and email address.
The bank lets you save your online application and return to it later. After you submit your application you get a reference number. You can use this to track the status of your application. If you’re not an existing Australian Military Bank member, you’ll have to become one first. You’ll also have to open the Junior Saver Account.