P&N Term Deposit

Available terms

When choosing a term deposit you will be given the option to invest from anywhere starting at two months going up to five years. With the Regular Income Term Deposit your options are limited to one to five years.

Interest rates

A fixed interest rate will apply and will be dependent on how long your term is for, how much money you have invested and how often you wish to receive your interest payments.

Interest calculation

Your fixed interest rate is calculated on the daily balance.

Interest payments

If you choose the Money Maker term deposit you will be paid interest only when the account reaches maturity. With the Regular Income Term Deposit you get to choose between monthly, quarterly or annual interest payments.

Early redemption

If you choose to end your term deposit before the selected maturity date the interest will be calculated at their prevailing "cash rate target". If you have already received interest payments on the term deposit then any amount paid in excess of the "cash rate target" will be deducted from the principal before it is returned to you.

Term deposit maturity

You will be advised by P&N Bank before the maturity date of your term deposit. If written instructions are not provided by you as to your intent at the time of maturity then the money will automatically be rolled over into a new term deposit of the same length as the previous, but at the current interest rate. You will then have seven days to make any adjustments before being locked into the new term.

Redemption

Interest payments and your principal payment at the time of redemption can be made to you by cheque, by transfer to another P&N account or by electronic transfer to an account held by another financial institution.

Membership

The P&N Bank Term Deposits, and any other banking solution, are only available to current members. You can apply for membership online. The fee for your share in the mutual bank is $10, which will be deducted from your transaction or savings account after activation.

• Depository requirements. For terms starting at three months you must make a minimum deposit of $5,000. If you wish to invest in a two month term you will need to deposit at least $25,000.

Documentation needed

If you do deem that you qualify for the term deposit from P&N Bank then it is recommended that you have the following documentation ready before your appointment to fill out an application:

• Tax file number. You are under no obligation to quote your tax file number (TFN) or exemption code at this time, but if you don't you could be subject to a withholding tax deduction from your interest earnings.
• Identification. A driver's licence or passport is accepted in order to confirm your identity.

What happens after I submit my application?

After completing the application your term deposit will become active once the initial deposit has been cleared into the account.