A term deposit offers secure, guaranteed returns on your savings, providing a safe and reliable investment opportunity. Although commonly associated with personal and business banking customers, SMSFs and trusts can also take out term deposits, allowing them to build a bigger bank balance. The RaboDirect Term Deposit combines competitive interest rates with terms ranging from one month to five years. Interest is paid annually, half-yearly, quarterly or monthly and there’s a 0.10% p.a. loyalty bonus when you roll your matured deposit over into a new term deposit account
What are the features of the RaboDirect Term Deposit (SMSF and Trusts)?
The RaboDirect Term Deposit (SMSF and Trusts) offers the following range of benefits and features to help you boost your savings:
Fixed interest rate: Up to 2.55% p.a. for 6 months
The RaboDirect Term Deposit provides a competitive fixed interest rate so that you can enjoy guaranteed returns on the money you invest. The interest rate you receive varies based on the term you select.
Choice of terms
This account is available with terms ranging from one month to five years, allowing you to choose the investment period that best suits the financial needs of your SMSF or trust.
The RaboDirect Term Deposit requires you to deposit at least $1,000 in order to open an account. The maximum deposit limit is $2 million.
Interest payment options
If you choose a RaboDirect Term Deposit with a term of 12 months or more, you can choose to have your interest paid at any of the following intervals: monthly, quarterly, half-yearly or yearly.
Manage your money online
SMSF and trust customers can manage their Term Deposit online through RaboDirect’s secure Internet banking website and mobile banking app. Compare other Rabodirect products.
When your term deposit matures, you have the option to roll your funds over into a new term deposit. Customers who choose to do so will receive a 0.10% p.a. interest rate bonus to reward their loyalty.
- Guaranteed interest rate of 3.30% 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 $1000 needed to begin with
What you need to know before applying
To complete the online application you will need to do the following:
- Have an existing SMSF or trust. You will need to choose the relevant option (SMSF or trust) at the start of the application.
- Open a Business High Interest Savings Account. This comes with all RaboDirect accounts to help you transfer funds. It does not charge any ongoing fees.
You must meet all eligibility criteria, but they vary depending on the type of account you are applying for. For SMSF applications, your SMSF must meet the following requirements:
- Be registered. Your super fund must be registered in Australia and have an Australian Business Number (ABN) for tax purposes.
- Have a bank account. Your super fund must have a bank account in its name with another financial institution.
In addition, you, the authorised signatory, must be over 18 years of age and an Australian resident for tax purposes. You will also need to provide the following details and documentation to successfully complete the application:
- Account details. RaboDirect requires the BSB and account number of an existing account the SMSF holds with another financial institution.
- Name and ABN. You must supply the name and ABN of the SMSF.
- Tax File Number (TFN). You will need to supply the TFN or exemption of the super fund.
- Your details. You must provide the full details of the individual or company acting as the SMSF trustee.
To open a RaboDirect Term Deposit for a trust, you must satisfy the following criteria:
- Be registered. Your trust must be currently registered in Australia and have an ABN for tax purposes.
- Have a bank account. The trust must have a bank account in its name with another financial institution.
- Age and residency. You, the authorised signatory, must be over 18 years of age and an Australian resident for tax purposes.
You will need to provide the following during the application process:
- Account details. You will need to supply the BSB and account number of an existing account the trust holds with another financial institution.
- Name and ABN. You must supply the name and ABN of the trust.
- Tax File Number (TFN). You will need to supply the TFN or exemption of the trust.
- Trustee details. You will need to supply the name and contact information of the individual or company acting as a trustee.
- Trust deed. Make sure you have your trust deed handy when completing your application.
The RaboDirect Term Deposit offers a competitive interest rate, a wide range of terms and the security of guaranteed returns. Compare it with other term deposit accounts to find the right place to invest funds for your SMSF or trust.