Manage your cash flow with a RaboDirect term deposit – choose to have your interest paid monthly, quarterly, half-yearly or yearly. With a small investment of $1,000, you can lock in a competitive interest rate today. Using online banking and a mobile app, the RaboDirect Business Term Deposit is an easy to manage high interest savings account for your business. If you would like to withdraw any funds from your term deposit, you will be required to provide RaboDirect with at least 31 calendar days' notice unless financial hardship applies.
What are the features of the RaboDirect Business Term Deposit?
Excess business capital can still be put to good use with the right term deposit for business. Take a look at the features RaboDirect is offering and compare them with other banks before choosing the one that can help increase your bottom line:
No account fees
RaboDirect charges no establishment or monthly account keeping fees for the Business Term Deposit.
Minimum investment amount
A Business Term Deposit can be opened with $1,000.
With RaboDirect you can choose terms from one month up to five years.
Competitive and fixed interest rate
The interest rates with RaboDirect’s Business Term Deposit are competitive and fixed, growing in value when you choose longer terms.
Interest payment frequency
Interest is calculated on the daily balance and you choose how often to receive your payments depending on the length of the term. Less than one year is only paid at maturity, while longer terms can have the interest paid monthly, quarterly or annually. You should note that the interest rates drop slightly when payments are made with more frequency.
Earn bonus interest for your loyalty
When you allow your term deposit to rollover to a new one at maturity a 0.10% loyalty bonus will be added to the prevailing rate.
31-day notice required to access funds before maturity
Any funds withdrawn from the RaboDirect term deposit must be given at least 31 calendar days' notice unless financial hardship applies. If there are less than 31 calendar days remaining, the earliest you may access the funds is at maturity (again, unless financial hardship applies).
Keep earning interest with automatic rollovers
You will be notified by RaboDirect when your maturity date is approaching. If you do not provide them with instruction on whether you will be making a withdrawal, they will automatically roll your account into a new one for the same term length, but at the prevailing interest rate plus the loyalty bonus.
7-day grace period
Starting from the date after maturity you have a seven day grace period where you are permitted to make changes to your term deposit without having to pay a penalty or incur an interest rate reduction.
Your linked account
The RaboDirect Business Term Deposit must be linked to another business account listed in the same name where you can transfer your funds and receive your interest payments.
- Guaranteed interest rate of 3.15% p.a.for fixed period of 5 years
- Interest paid to a linked Rabodirect account
- No access to your money
- Online bank only - no branch or counter access
- Minimum of $1,000 needed to begin with
How do I open a RaboDirect Business Term Deposit?
Before clicking “Go to Site” to open your Business Term Deposit online you must also have a RaboDirect High Interest Savings Account for your business to link it to.
Eligibility to apply online
Other eligibility requirements that are important to know beforehand include:
- Minimum age. As the authorised signatory for the account you must be at least 18 years of age.
- Residency requirements. All applicants must be Australian residents for tax purposes.
- Depository requirements. Your Business Term Deposit will not be activated until you make an opening deposit of at least $1,000.
Documentation for your online application
Being a business related banking account, you are also going to need the following documentation in order to complete the application with accuracy:
- Tax file number. The business tax file number (TFN) or exemption helps to ensure that the withholding tax applied to your interest earnings is at the correct rate.
- Identification. Acceptable identification documents for all account holders includes a valid passport, driver’s licence or Medicare card.
- Account information. RaboDirect requires that your business has an existing bank account in the same name. You will need to provide the BSB and account number for this account.
- Business information. Your Australian Business Number (ABN) or Australian Company Number (ACN) is also needed.
What happens after I've submitted my online application?
After submitting your application the information provided will be verified by a representative from RaboDirect and your initial deposit amount transferred before the account is activated.