The Heritage Bank term deposit guarantees a fixed interest rate so you know what your investment is worth. You can invest from as little as $1,000. You can choose to have your interest paid on maturity, up-front, fortnightly (for aged pension receivers), monthly, quarterly, half-yearly or yearly.
What are the features of the Heritage Bank Term Deposit?
Since you will be locked into a term deposit for a specified amount of time, it is important that you know the features of the account you choose and compare those between banks before making your final choice. When doing so, keep the following in mind for the term deposit from Heritage Bank.
$0 Monthly account keeping fees
There are no monthly fees, nor are there any establishment fees charged when you set up a term deposit with Heritage Bank.
Small minimum investment of $1,000
You must be able to deposit at least $1,000 for a term deposit with Heritage Bank.
A range of terms available
You can choose to invest from 1 month to 5 years
Fixed and guaranteed interest rates
The interest rates for a term deposit are fixed, and tiered to give you a higher return with larger investments and longer terms.
Flexible interest payments
The interest is calculated on the balance each day, and can be paid up front, monthly, quarterly, semi annually, annually, or at maturity. These payment options are only applicable for short term investments. For term deposits of longer than one year, the interest payments are paid into the account annually.
Upfront payments will have a portion of interest deducted.
Special offers for pensioners
Pensioners with a term deposit of up to 1 year can also opt for fortnightly interest payments.
You are able to withdraw a portion or all of your investment before maturity. A reduced interest rate will apply if this is the case.
Maturity and re-investment options
Once your account reaches the end of your stated terms, you will be given 7 days to let Heritage Bank know if you intend to roll over the money into a new account or make a withdrawal. If you do not provide it with instructions, it will automatically begin a new term for your deposit.
- Low minimum investment of $1,000
- $0 Account keeping fees
- Wide ranges of terms from from 1 month to 5 years
- A reduced interest rate will apply if you withdraw a portion or all of your investment before maturity
How do I apply for a Heritage Bank Term Deposit?
Heritage Bank is a customer owned financial institution, where you must first become a member in order to take advantage of their banking products. Any Australian is invited to apply for membership, which also includes paying a shareholder fee of $1. After becoming a member, you can visit Heritage bank website and start an online application for a term deposit.
Eligibility to apply online
There are some other eligibility requirements you will have to meet in order to be able to proceed with the application:
- Minimum age. There is no age requirement stated for the Heritage Bank term deposit.
- Residency requirement. You must be able to provide a verifiable residential address in Australia.
- Depository requirement. With this term deposit you can open an account with a minimum of $1,000.
Documentation for your online application
Documentation you will need to have in order to complete your online application includes:
- Tax file number. Your tax file number (TFN) or exemption code is not mandatory, but it does help in ensuring that the withholding tax on your earned interest is not at the highest marginal rate.
- Identification. You can use your passport, driver’s licence or Medicare card to help in verifying your identity to Heritage Bank.
What happens after I submit the application?
After submitting your application, Heritage Bank will review the information and make the transfer of your deposit into your new account. You will then be notified of the details so that you can track how your quickly your savings is multiplying.
If I offer to put $250, 000 + into a 12 month term deposit, what is the interest rate I can expect to earn from Heritage?
The 12 month term deposit rate for this account is listed on this page under the ‘Current Heritage Term Deposit Rates’ heading.