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Summary

You can invest from as little as $1000 and choose from a range of term lengths.

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You can choose how long you keep your savings set aside, and with a fixed interest rate this gives you the opportunity to calculate exactly what your return will be.

To open an account you must first become a member. To join as a member you need to work in the education sector, be studying or have graduated from an Australian University in education or be immediate family to a Teachers Mutual Bank Member.

Pros

$0 account maintenance fee
Small minimum investment of $1,000

Cons

$10 shareholder fee charged for membership
Membership eligibility criteria applies

Details

Key details

Product Name	Teachers Mutual Bank Term Deposit
3 month interest rate	3.50%
4 month interest rate	3.50%
6 month interest rate	4.00%
7 month interest rate	4.00%
9 month interest rate	4.90%
12 month interest rate	5.00%
24 month interest rate	4.00%
36 month interest rate	4.00%
Minimum Opening Deposit	$1,000
Minimum age requirement	18
Government guarantee	Yes

Eligibility

Minimum Age Requirement	18
Joint account availability	Yes
Min Deposit	$1,000
Available to children	Not available for children

Key features

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.

Compare more Teachers Mutual bank accounts

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How to apply

Eligibility

Existing members can apply for a term deposit via Internet banking. 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:

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 needed

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.

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Peter

October 16, 2019

I’m a provisionally registered (VIT) teacher. Can my mother invest in a term deposit with Teachers Mutual Bank?

Jeni Finder

October 19, 2019

Hi Peter,

Thank you for getting in touch with Finder.

Yes, your mother can invest in a term deposit with Teachers Mutual Bank so long that she becomes a member and pay a one-time membership fee of $10.00. If applying online, please make sure that you’ve read the relevant T&Cs or PDS of this account to help consider whether the product is right for you/your mother.

I hope this helps.

Thank you and have a wonderful day!

Cheers,

Jeni

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Teachers Mutual Bank Term Deposit

Pros

Cons

Key features

No monthly account keeping fees

Membership required

Online and phone banking access

Term options

Minimum deposit

Interest rates

Interest payments

Interest calculation

Account maturity

Early withdrawal

Partial withdrawals

Opening a term deposit

How to apply

Eligibility

Documentation needed

What happens after I submit my application?

Your reviews

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