Bank Australia Term Deposit Account

What are the features of the Bank Australia Term Deposit Account?

Term deposits offer Australians a secure way to save their funds in an account that typically earns a higher rate of interest. There are features that differ between various financial institutions, and it is those that you should compare against what Bank Australia is offering:

• Monthly account keeping fees. With Bank Australia you will not be charged any monthly fees on the term deposit.
• Minimum investment. Investments as low as $500 are allowed and can go up to .
• Options for terms. Your choices for how long you want to lock your money into a term start at three months and extend to three years.
• Interest rates. The interest on the term deposit is fixed at a competitive rate that increases with the amount of money you invest and the length of the terms.
• Interest calculation. Interest is calculated on the daily balance of the account as of the end of the day.
• Interest payments. If you choose to have your interest paid at maturity, it will be added to the account at the time of maturity. Those who opt for monthly interest payments will see them deposited into their linked account, yet the interest rates with this type of payment schedule are slightly lower.
• Nominated account. You will nominate an account that will act as the transfer hub for your Bank Australia term deposit. The account you choose can be any of the following from Bank Australia; Everyday Access, Pension Access, Mortgage Offset, Online Saver or Commercial Saver.
• Accessibility. You can view the progress of your account and its details using Bank Australia’s internet, mobile or phone banking system.
• Account maturity. You will be notified in advance when your term is about to come to an end. It is up to you to provide instructions for whether you wish to continue with a new term deposit at the current rate, or withdraw your funds. If no notice is given, the money will automatically be deposited into a new term deposit for the same length of time, but at the current interest rate.
• Grace period. You are given 14 days after the term deposit has been activated to make changes, deposits or withdrawals without incurring any penalty charges.
• Early withdrawal. If for any reason you need to make a withdrawal of your savings before the term deposit reaches maturity, the request must be made 31 days prior and is subject to approval from the Bank Australia. The interest rate will then be adjusted according to the percentage of time the account had left before maturity. For example, if you fulfilled 80% of the selected term, than 80% of the earned interest will be credited to you.
• Partial withdrawal. You can request an early partial withdrawal of your funds, so long as the balance meets the minimum requirement. The balance of your account will still receive the amount of interest that was stated when the account was opened.
• Early withdrawal of monthly interest payment term deposits. If you give 31 day notice on a term deposit which is paying you interest monthly, no interest will be accrued from the time the notice is given until the closure of the account.