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Summary

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

Rural Bank offers term deposits with a very wide range of rates and terms. While the rates listed here are quite low, the rates increase if you put a a larger some of money in the account.

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

Details

Key details

Product Name	Rural Bank Term Deposit - $500+
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
Government guarantee	Yes

Eligibility

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

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.

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Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full profile

Rural Bank Term Deposit

Pros

Cons

Key features

No monthly fees

Personal or business customers

Tiered interest rates

Minimum deposit of $500

Interest calculated daily

Choose how to receive interest payments

Online term deposit available

Online term deposit terms from one, six or twelve months

Choose to roll the account over at maturity, or withdraw

Early withdrawal available

How to apply

Eligibility

Documentation needed

What happens after I submit my application?

Your reviews

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