Product details
The flexible NAB Term Deposit allows you to earn a fixed rate of interest on your savings for the short and long term. You can use the interest earned to augment your income now, or choose to have it help grow your savings by having it added at maturity.
With this flexible high interest savings account, you set the terms that will help you to reach your goals.
- Product Name
- NAB Term Deposit
- 1 month interest rate
- 1.50%
- 3 month interest rate
- 2.00%
- 4 month interest rate
- 2.00%
- 6 month interest rate
- 2.05%
- 9 month interest rate
- 2.00%
- 12 month interest rate
- 2.40%
- 24 month interest rate
- 2.60%
- 36 month interest rate
- 2.70%
- 48 month interest rate
- 2.75%
- 60 month interest rate
- 2.80%
- Min Deposit
- $5,000
- Minimum Age Requirement
- 18
What are the features of the NAB term deposit?
When looking at the various term deposit accounts offered by Australian banks it is important that you carefully compare these features that NAB provides in order to help you in deciding which one will best assist you in meeting your financial plans. If you decide a term deposit isn't right for you, take a look at the other accounts offered by NAB instead.
No fees
There are no monthly or establishment fees charged to you for this term deposit.
Tiered interest rates
The interest rates for a term deposit with NAB are fixed and competitive, growing in value as you choose longer terms. They also have special rates, or “blackboard specials” periodically, allowing you to lock in a better rate for the length of your term.
Daily interest calculation
Interest on your balance is calculated at the end of each day.
Choose when to receive interest payments
For terms of one year or longer, you can choose to have the interest payments made monthly, bi-annually or annually. Note that by choosing interest payments with more frequency, the rate may be slightly reduced. All terms are also available to have the interest payments made at maturity.
Choose how to receive interest payments
With the exception of interest paid at maturity, payments will be made into any Australian bank account you choose, or as a cheque or cash at any NAB branch.
Minimum deposit of $5,000
You must be able to deposit at least $5,000 in order to open a NAB Term Deposit.
Choose any linked account
You will need to nominate an account where your initial deposit can be transferred from and interest payments can be made into. This account can be held by NAB or any other Australian financial institution.
BPAY available
You will need to have access to BPAY in order to deposit funds into the term deposit account.
Account maturity
At maturity you can opt to have all of the funds moved to your nominated account, reinvested into a new term deposit, or receive the entire balance from a NAB bank as cash or a cheque. If you do not provide NAB with instruction on what to do when your term reaches maturity they will automatically roll it into a new term of the same length, but at the prevailing interest rate.
Early withdrawal available
If you need to withdraw all or a part of your term deposit before maturity, you must give NAB at least 31 days prior notice. This could result in a reduction of the interest paid to you as well as other fees. If a partial withdrawal results in a balance below $5,000, the account will be closed and all monies returned to you.
Pros
- $0 Account keeping fees
- Wide ranges of terms from from 7 days to 5 years
- Linked account required from NAB or any other Australian financial institution
Cons
- 31 days advance notice required in case of withdrawing funds before maturity
- Minimum investment of $5,000.
How do I apply for a NAB Term Deposit?
If NAB’s term deposit offers the rates and benefits that you need to reach your savings goal, you can apply online in under 15 minutes. Before you access NAB's secure application page, ensure that you are eligible to apply for this account and have the necessary documents handy.
Eligibility requirements:
- Minimum age. You must be 18 years or older to qualify for this term deposit.
- Residency requirements. Both permanent and temporary residents are eligible to apply provided that they are able to show a valid Australian residential address.
- Depository requirements. A minimum of $5,000 is needed before the account is activated.
Documentation needed:
- Tax file number. Although not mandatory, a tax file number (TFN) or exemption code will prevent your interest earnings from being taxed at the highest marginal rate.
- Identification. Acceptable forms of identification include your passport, driver’s licence or Medicare card.
What happens next?
Once your application has been submitted, NAB will send an email to the address you provided confirming its receipt. Unless they request more information from you, you will have three business days to make your initial deposit using the Biller Code and Customer Reference Number provided when you submitted your application online. Once those funds have been transferred with success another confirmation email will be sent, along with a welcome pack to your physical address.
What is 2.8% of $4000? If its worked on p.a., how much interest will I get on maturity in 4 months?
Hello Christine,
Thank you for your comment.
According to the Term Deposit Saving Calculator, 2.8% of $4000 in 4 months if compounded annually is $0.00, if compounded monthly is $37.46, if compounded daily is $37.51.
If you’re interested on NAB term deposit, please note that the minimum deposit is $5,000. Please refer to the other details above.
Regards,
Jhezelyn
I have self managed super account
What is the best fixed term interest rate that you can offer for 6 Months
Hi John,
Thank you for your inquiry.
Here’s a self-managed super fund (SMSF) term deposit that could be the solution on what you need.
I hope this information has helped.
Cheers,
Harold
Hi. In case a foreigner (non-resident) , can I apply for Term Deposit account in Australian banks. And how is taxable rate that have to pay for interest amount ? Tks.
Hi MinD,
Thanks for your inquiry
Most banks will let non-residents open a term deposit even though you’re not a resident of Australia. However, not supplying a Tax File Number could trigger an automatic tax with-holding of approximately 48%, so if the applicant doesn’t have a TFN, it may not be tax-effective to open a term deposit in Australia. Banks should also have an exemption code that they can put in their system to override this for non-residents so that they’re taxed at the foreign resident marginal tax rates instead.
For more information please check out this page
Hope this information helps
Cheers,
Arnold
Hi, I was wondering which formula does NAB use to calculate their interest for term deposits? Simple or compound interest?
E.g.
Simple interest = amount invested x rate % per annum x number of days/365
or
Compound interest = amount invested (1 + rate per annum/payment freq )^ (payment freq x number of days/365
Hi A,
Thanks for your question.
Term deposits generally use compounding interest.
Kindly note that the term deposit calculator on our page doesn’t take into account any loyalty bonuses. We also display the interest rate that is paid at maturity and assume base rate.
Cheers,
Anndy
We have $110,000 to invest or deposit what is the maximum interest we can get with your bank
Hi Thi,
Thanks for your question.
Just to confirm, we are an Australian comparison website and as such, provide general advice only. Regarding the maximum interest you can get with your deposit, in a term deposit the interest rate varies between terms. For example, with the NAB Term Deposit, if you keep your funds locked away for a 1 month term, you will receive 1.50% interest on your balance. If you keep your funds locked away for a 24 month term deposit, you will receive 3.10% interest on your balance.
Currently, NAB offer 3.20% interest rate on a 36 month term deposit – the highest available on this product.
Regards,
Clarizza