Rural Bank Term Deposit

Rural Bank Term Deposit

Min. Opening Deposit

500

Account Keeping Fee

0.00

A Rural Bank term deposit offered competitive, tiered interest rates across a large range of term lengths.

  • 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 fixed interest rate on the entire balance, this account is a secure way to invest in your future.

The minimum opening and ongoing balance is only $500, however the more you invest, the more interest you earn.

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. Check the features offered below to ensure this account meets your needs.

No monthly fees

You will not be charged an establishment or any monthly fees for Rural Bank’s term deposit.

Personal or business customers

This account is available as a personal or business account as well as for SMSF applicants.

Tiered interest rates

Interest rates are fixed, growing in value with higher deposit amounts and longer terms. The interest rates outlined above are for the lowest balance bracket, and you can earn higher interest rates with higher balances.

Minimum deposit of $500

You can open your term deposit with Rural Bank with as little as $500.

Interest calculated daily

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.

Choose how to receive interest payments

Interest payments may either be reinvested into the account or transferred to another account.

Online term deposit available

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.

Online term deposit terms from one, six or twelve months

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.

Choose to roll the account over at maturity, or withdraw

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 available

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.

Launch term deposit calculator

Pros

  • Low minimum investment of $500
  • $0 Account keeping fees
  • Wide ranges of terms from from 1 month to 5 years

Cons

  • 31 days advance notice required in case of withdrawing funds before maturity

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, six or twelve months with interest being paid at maturity. If those shorter terms suit your needs, you can begin an online application by clicking the 'Go to Site' button. Check first to make sure that you are eligible for this account.

Eligibility requirements:

  • 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 needed:

  • 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.

What happens next?

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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