Product details
Manage your savings account growth online with a flexible term deposit from Teacher’s Mutual Bank that allows for lower deposits to start your savings growth. You can choose how long you keep your savings set aside, and with a fixed interest rate this gives you the opportunity to make plans for your financial future.
- Product Name
- Teachers Mutual Bank Term Deposit ($5,000)
- 3 month interest rate
- 2.40%
- 4 month interest rate
- 2.40%
- 6 month interest rate
- 2.60%
- 12 month interest rate
- 2.85%
- 24 month interest rate
- 2.90%
- 36 month interest rate
- 3.00%
- Min Deposit
- $1,000
- Max Deposit
- $499,999
- Joint Application
- Yes
- Minimum Age Requirement
- 18
- Covered by Government Guarantee
- Yes (Up to $250,000 per person, per institution)
What are the features of the Teacher’s Mutual Bank Member Term Deposit?
A term deposit is a smart way to reduce access to your savings while it earns a competitive interest rate. When considering this type of account for your savings goals, first compare the various features that Teacher’s Mutual Bank offers with the term deposits being offered by other banks:
No monthly account keeping fees
No money is deducted from your balance for account maintenance.
Membership required
This term deposit is only available for Teacher’s Mutual Bank members.
Online and phone banking access
You are allowed to view your account with unlimited free online and phone banking.
Term options
Terms range from three months to three years.
Minimum deposit
For new teacher members or members aged 24 or younger, the minimum balance requirement is $500. For other members the minimum deposit is $1,000.
Interest rates
The interest rates for this account are tiered, giving you the highest return on your investment when you make larger deposits for longer term periods.
Interest payments
You can choose to have the interest payments made fortnightly, monthly, yearly or at maturity. Fortnightly and monthly payments will not be eligible for compound interest, while yearly payments are.
Interest calculation
The fixed interest is calculated on the daily closing balance of the account.
Account maturity
You will be advised in writing when your deposit is reaching maturity. At that time you have the option of continuing with the term deposit or withdrawing your money.
Early withdrawal
If for any reason you need to withdrawal your term deposit before the agreed upon maturity date, your interest rate will be reduced by 2%. For terms of less than two years, an early withdrawal is only permitted in cases of extreme hardship. With terms over two years the money is at call for the first two years, but the interest rate will be reduced if money is withdrawn. Keep in mind that if you make an early withdrawal after an interest payment has been made, the mutual bank reserves the right to deduct the excess interest from your remaining balance.
Partial withdrawals
You are allowed a partial withdrawal so long as it does not result in a balance that is less than the minimum balance requirement.
Opening a term deposit
A term deposit can be opened by transferring the deposit amount from another Teacher’s Mutual Bank account or with a cheque made out to the account holder’s name.
Pros
- $0 account maintenance fee
- Minimum investment of $1000
Cons
- $10 shareholder fee charged for membership
How do you apply for the Teacher’s Mutual Bank Term Deposit?
Existing members can apply for a term deposit by going online and downloading the application. This will then need to be filled in and returned to the mutual bank. If you are not already a member of Teacher’s Mutual Bank, you can apply online after checking that you meet the following eligibility requirements:
Eligibility requirements
- Minimum age. Applicants must be at least 18 years of age in order to be considered. You must also be employed, or the family member or friend of someone who is, by the Australian education industry.
- Residency requirements. All members must be permanent Australian residents.
- Depository requirements. There is a $10 shareholder fee charged for membership. For the term deposit, the minimum opening balance must be either $500 or $1,000 depending on your circumstance.
Documentation required
Having the following documentation ready will help in filling out your online application:
- Tax file number. This is not an obligatory requirement, but by providing your tax file number (TFN) or exemption code Teacher’s Mutual Bank will be able to withhold taxes on your interest earnings at the correct rate.
- Identification. Your driver’s licence or passport will contain information that will allow the mutual bank to verify your identity.
What happens after I submit my application?
With your membership approved you can than go ahead and apply for the term deposit. Once the high interest savings account has been activated, you will receive a term deposit certificate within five to seven business days.
Related savings accounts
Teachers Mutual Bank Reward Saver Account
Maximum Variable Rate
2.36Standard Variable Rate
0.10
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