Manage your cash flow with a RaboDirect term deposit – you can 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. A term deposit is a low-risk investment and you can increase your returns by reinvesting the money for a second term.
If you would like withdraw your funds early, a termination fee that is equal to RaboDirect’s break cost applies, plus a processing fee of $25.00.
What are the features of the RaboDirect Term Deposit?
Get a guaranteed interest rate and peace of mind on your savings with a RaboDirect term deposit. 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. Check these accounts and their features across a number of Australian banks and see which one is going to give your money the biggest benefit.
Small minimum investment amount of $1,000
You are required to make an investment of at least $1,000 into your term deposit.
$0 Monthly account keeping fees
There are no monthly account keeping fees taking away from your savings with RaboDirect’s term deposit.
Choice of terms
You can invest your money for as little as 1 month or up to 5 years.
Linked bank account
The term deposit needs to be linked to a RaboDirect high interest savings account. This will allow for you to make transfers into your term deposit and receive your periodic interest payments.
Competitive interest rates
The interest rates for the term deposit are fixed, and tiered to give you the highest rates for the longest terms.
How is my interest calculated and paid?
Interest is applied to the daily balance of your account and paid into your linked account unless you choose payment at maturity, in which case it can be added directly to your term deposit balance. For terms of less than a year, you can only have the interest payment made at maturity. For other lengths of time you can choose from monthly, quarterly, bi-annual, annual and maturity payments. Interest rates are slightly lowered when you choose payments that are closer together.
0.10% p.a. Loyalty bonus
If you automatically reinvest your term deposit into a new one when it reaches maturity, RaboDirect pays you for your loyalty by adding an additional 0.10% per annum to your interest rate.
You have up until the business day before maturity to let RaboDirect know whether you will be reinvesting all, part or none of your deposit into new terms. If you neglect to give them that notice, the money will be automatically rolled into a new account for the same terms, but at the prevailing fixed interest rate plus the loyalty bonus.
Access funds before maturity
From 18 August 2015, 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).
- $0 Account keeping fees
- Loyalty bonus rate of 0.1% p.a. available when reinvesting
- Flexible terms from 1 month to 5 years
- Small minimum investment of $1,000
- Need to link to RaboDirect high interest savings account
- 31 days advance notice required in case of withdrawing funds before maturity
How do I apply for the RaboDirect Term Deposit?
If the low minimum deposit and options in terms and payment plans makes you want to go with RaboDirect’s term deposit, click on “Go to Site” to begin your online application now.
Eligibility to apply online
The first page of the application is going to ask that you are able to meet the following eligibility conditions:
- Minimum age. Applicants must be at least 16 years of age.
- Residency requirements. You must be an Australian resident for tax purposes with a residential address in Australia.
Documentation for your online application
In addition, you must have a RaboDirect High Interest Savings Account active at all times when you are their customer. RaboDirect also makes recommendations on the types of documentation you will need as you fill out the application:
- Tax file number. RaboDirect will use your tax file number (TFN) or exemption code to ensure that your withholding tax on the earned interest is at the correct rate.
- Identification. The details of your driver’s licence, passport, or Medicare card.
- Account information. You must be able to provide the BSB and account number for a non RaboDirect bank account in your name with an Australian financial institution.
So long as RaboDirect is able to verify your identity online, your term deposit account will be linked to your banking account and you can make your deposit in order to activate the terms. You will then begin earning the competitive interest rate on your savings balance.