Rural Bank Term Deposit

Rural Bank Term Deposit

Min. Opening Deposit

500

Account Keeping Fee

0

When you invest in a term deposit with Rural Bank you have the chance to earn a competitive interest rate.

  • A low minimum deposit of $500
  • No monthly account keeping fees
  • Terms from 1 month to 5 years

Product details

With a modest investment, Australians can see a high rate of return on their savings when they choose Rural Bank for a term deposit. With terms that range from months to years, and a competitive interest rate on the entire balance, this flexible high interest savings account is a secure way to invest in your future.

The minimum opening and ongoing balance is $500.

Product Name
Rural Bank Term Deposit
1 month interest rate
0.50%
3 month interest rate
0.50%
4 month interest rate
0.50%
6 month interest rate
1.00%
9 month interest rate
1.00%
12 month interest rate
1.75%
24 month interest rate
2.00%
36 month interest rate
2.00%
48 month interest rate
2.00%
60 month interest rate
2.00%
Min Deposit
$500
Joint Application
Yes
Minimum Age Requirement
12
Covered by Government Guarantee
Yes (Up to $250,000 per person, per institution)

What are the features of the Rural Bank Term Deposit?

Despite not being a big name, Rural Bank is owned by the Bendigo and Adelaide Bank Group, and able to provide its customers with features that are comparable to other financial institutions.

  • Monthly fees. You will not be charged an establishment or any monthly fees for Rural Bank’s term deposit.
  • Availability. This account is available as a personal or business account as well as for SMSF applicants.
  • Interest rates. Interest rates are fixed, growing in value with higher deposit amounts and longer terms.
  • Minimum deposit. You can open your term deposit with Rural Bank for $500.
  • Interest calculation and payment. Interest is calculated daily and can be paid to you at maturity, monthly, quarterly or yearly. For short term deposits of less than a year, interest is only paid when the terms are complete. You should also note that choosing to have your payments made periodically rather than at maturity will cause a reduction in the interest rate.
  • Interest payments. Interest payments may either be reinvested into the account or transferred to another account.
  • Nominated account. If you choose the online term deposit, which is only available for three or six months or one year, you will have to nominate an alternate account from which your funds will be deducted from. If you choose an in branch term deposit you are not obligated to link an account to your term deposit, but will then need to post a cheque to Rural Bank for the initial deposit.
  • Terms. For the staff assisted term deposit, the terms range from one month to five years. With the online term deposit you can only choose three or six month terms or one year.
  • Maturity. You will be advised that your term deposit is close to maturity in writing, approximately two weeks before the scheduled date. At that time you will need to inform Rural Bank if you intend to keep the money in the account and roll it into a new one, or will be making a withdrawal. If you don’t provide this information, Rural Bank will automatically restart the terms, but at the prevailing interest rate posted at that time.
  • Early withdrawal. You must provide at least 31 days notice if you need to make a withdrawal of your savings. The interest rate will then be adjusted to reflect what those new terms are.

Pros

  • Suitable to all customers (individuals, businesses, superannuation trusts, companies, partnerships, etc
  • No fees

Cons

  • A minimum investment amount of $500 is required

How do I apply for the Rural Bank Term Deposit?

If you wish to invest for terms of longer than one year, or prefer to bank inside of a branch, you will have to apply for the term deposit in person or by contacting Rural Bank by phone. The Rural Bank One term deposit may be applied for online, but is only available for terms of three or six months or one year with interest being paid at maturity. If those shorter terms suit your needs, you can begin applying by clicking on “Go to Site”. Check first to make sure that you are eligible for this account:

  • Minimum age. Applicants must be at least 12 years of age.
  • Residency requirements. Australian permanent residents, New Zealand citizens residing in Australia and Australian citizens are all eligible.
  • Depository requirements. A minimum opening deposit of $500 is required to activate the account.
  • Business or SMSF customers. Your business must be registered in Australia. If you are applying for an SMSF, ensure that it is regulated by the Australian tax office.

Documentation you will also need to fill out the application includes:

  • Tax file number. By providing your tax file number (TFN) or exemption code, you are ensuring that you will not be taxed on your interest earnings at the highest marginal rate.
  • Identification. A driver’s licence, passport or Medicare card are all acceptable identifying documents.
  • Business or SMSF applicants. Additional information such as your Australian Business Number will be required in order for the application to be processed.
  • Linked account information. The account details for a banking account with Rural Bank or another Australian financial institution in order for transfers to be made.

Once the application has been submitted and accepted by Rural Bank, you will be notified with an account acceptance letter via email. This will include the details of your account in order to make your initial deposit. If that deposit is not made within seven business days, the account may be closed or a new interest rate may apply.

 

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