Teachers Mutual Bank Term Deposit

Online and phone banking access

You are allowed to view your account with unlimited free online and phone banking.

Term options

Terms range from three months to three years.

Minimum deposit

For new teacher members or members aged 24 or younger, the minimum balance requirement is $500. For other members the minimum deposit is $1,000.

Interest rates

The interest rates for this account are tiered, giving you the highest return on your investment when you make larger deposits for longer term periods.

Interest payments

You can choose to have the interest payments made fortnightly, monthly, yearly or at maturity. Fortnightly and monthly payments will not be eligible for compound interest, while yearly payments are.

Interest calculation

The fixed interest is calculated on the daily closing balance of the account.

Account maturity

You will be advised in writing when your deposit is reaching maturity. At that time you have the option of continuing with the term deposit or withdrawing your money.

Early withdrawal

If for any reason you need to withdrawal your term deposit before the agreed upon maturity date, your interest rate will be reduced by 2%. For terms of less than two years, an early withdrawal is only permitted in cases of extreme hardship. With terms over two years the money is at call for the first two years, but the interest rate will be reduced if money is withdrawn. Keep in mind that if you make an early withdrawal after an interest payment has been made, the mutual bank reserves the right to deduct the excess interest from your remaining balance.

Partial withdrawals

You are allowed a partial withdrawal so long as it does not result in a balance that is less than the minimum balance requirement.

Opening a term deposit

A term deposit can be opened by transferring the deposit amount from another Teacher’s Mutual Bank account or with a cheque made out to the account holder’s name.

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• Depository requirements. There is a $10 shareholder fee charged for membership. For the term deposit, the minimum opening balance must be either $500 or $1,000 depending on your circumstance.

Documentation needed

Having the following documentation ready will help in filling out your online application:

• Tax file number. This is not an obligatory requirement, but by providing your tax file number (TFN) or exemption code Teacher’s Mutual Bank will be able to withhold taxes on your interest earnings at the correct rate.
• Identification. Your driver’s licence or passport will contain information that will allow the mutual bank to verify your identity.

What happens after I submit my application?

With your membership approved you can than go ahead and apply for the term deposit. Once the high interest savings account has been activated, you will receive a term deposit certificate within five to seven business days.