With a term deposit from P&N Bank, you have the option of higher rates and a one-time interest payment with the Money Maker, or a monthly boost to everyday cash with the Regular Income Term Deposit. First decide what it is you are looking to achieve with your term deposit account and then compare the features to find the one that will allow you to meet that goal.
What are the features of the P&N Term Deposit?
When you choose a term deposit as your high interest savings account, you are making a commitment not to touch your investment cash for a specified length of time. Before you do make that commitment it is important to compare various term deposits from a number of banks to help you to find the one that will assist you in achieving your goals:
- Monthly fee. With this term deposit you will not be charged any monthly account keeping fees.
- Minimum deposit amount. You are able to invest in a term deposit with P&N Bank with a minimum of $5,000.
- 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.
- Two options available: Money Maker and Regular Income
- Earn a guaranteed interest rate
- Flexible options
How do I apply for the P&N Term Deposit?
Whether you are an existing P&N Bank member or looking to become one, you will have to apply for the term deposits either in person or over the phone. You can make an appointment by visiting the P&N Bank website and filling out an enquiry form. You should note that the following eligibility requirements will have to be met first before your application is accepted:
- Minimum age. Term deposit account holders are required to be at least 18 years of age.
- Residency requirements. You must be an Australian resident with a residential mailing and physical address.
- 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.
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.
After completing the application your term deposit will become active once the initial deposit has been cleared into the account.