For an annual fee, Rewards Package members of Teachers Mutual Bank are given a number of benefits, including increased interest rates on their term deposit investments. You still have the flexibility of choosing how long you invest for and the ability to make withdrawals at call once your term hits the two year mark.
What are the features of the Teachers Mutual Bank Rewards Package Term Deposit?
A term deposit provides you with a low risk way of earning higher interest on your saved money. There are a number of variables that will differ from bank to bank with this type of account, but by comparing the features offered you can make an informed decision on which term deposit is structured to meet your circumstance:
- Membership. Teachers Mutual Bank requires that you become a member first before you can take advantage of the Rewards Package Term Deposit or any other of their financial products. In order to join you must be an employed in the Australian education sector or be a family member or partner of an existing Teachers Mutual Bank member. There is also a $10 shareholder fee which will be charged to you when joining.
- Rewards Package. The Rewards Package provides you with certain banking perks, such as reduced fees and higher interest rates. You must apply for this package and if approved will be charged $200 yearly, which will be debited from your Everyday Account.
- Monthly account keeping fee. You will not be charged any monthly fees for the Teachers Mutual Bank Rewards Package Term Deposit.
- Minimum deposit. With Teachers Mutual Bank you can open a term deposit with $1,000.
- Term lengths. The range of terms available range from three months to three years.
- Interest rates. When you open a Rewards Package Term Deposit your balance receives a fixed competitive rate of interest. The rates are higher with longer terms and larger deposit amounts, plus you receive a bonus rate of on top of the base rate for being a part of the Rewards Package program. If you leave this program or fail to make your monthly fee the rates will revert to those found with the standard term deposit offered by Teachers Mutual Bank.
- Interest payments. You can choose to have your interest paid monthly, yearly or at maturity. For terms of longer than one year you are permitted to have the interest paid into the account in order to earn compound interest.
- Early withdrawal. For terms of less than two years you may only make an early withdrawal at the consent of Teachers Mutual Bank. This will result in a reduced interest rate based on the length of time the money was invested. For terms longer than two years you can withdrawal the money at call, but the interest rate may still be adjusted. Keep in mind that your account must always maintain a minimum balance of $5,000 or you will have to withdraw all of the funds and close the account.
- No account keeping fees
- Free online and phone banking balance enquiries
- A guaranteed rate
- Minimum opening balance is $1,000
How do I apply for the Teachers Mutual Bank Rewards Package Term Deposit?
In order to apply for this account, you must first be a member of Teachers Mutual Bank and a part of the Rewards Package Program. You should also be able to meet the following eligibility requirements before you apply:
- Minimum age. The Rewards Package Term Deposit is available for members aged and over.
- Residency requirements. Individuals applying for this account must be Australian permanent residents or citizens.
- Depository requirements. A minimum of $1,000 is needed in order to activate this account.
When filling in the online application you will find it helpful to have the following documentation readily available:
- Tax file number. You are not required to provide your tax file number (TFN) or exemption code, yet this will allow Teachers Mutual Bank to deduct the correct amount of withholding tax from your interest earnings.
- Identification. A driver’s licence, passport or Medicare card will contain information that is used to verify your identity.
You will be asked to provide a cheque in the amount of your deposit when submitting the application to Teachers Mutual Bank. Provided that you have given the mutual bank all the information needed, the term deposit will become active once those funds clear into the account.