Rural Bank Term Deposit

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

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.

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Shirley Liu

Last Updated Jan 1, 2021

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Details

Product Name	Rural Bank Term Deposit ($500 - $4,999)
3 month interest rate	0.05%
4 month interest rate	0.05%
6 month interest rate	0.10%
9 month interest rate	0.10%
12 month interest rate	0.15%
24 month interest rate	0.15%
36 month interest rate	0.15%
48 month interest rate	0.15%
60 month interest rate	0.15%
Minimum Opening Deposit	$500
Minimum Age Requirement	12

The rates displayed above are interest rates paid at maturity only. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide.

Minimum Age Requirement	12
Joint account availability	Yes
Min Deposit	$500
Available to children	Not available for children under 12 years of age

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

Key features

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

How to apply

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

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 after I submit my application?

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.

Shirley Liu

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Shirley Liu is Finder's global program manager. She was previously the publisher for banking and investments and has also written comparisons for energy, money transfers, Uber Eats and many other topics. Shirley has a Master of Commerce and a Bachelor of Media, Journalism and Communications from the University of New South Wales. She is passionate about helping people find the best deal for their needs.

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