Members Equity Term Deposit

Members Equity offers a number of term deposit options which help you make the most of your investment, while leaving you free to also make the most of movements in the financial markets too.

Is a Members Equity Term Deposit Right For You?

Where many term deposit providers offer their most attractive interest rates for long five year terms, Members Equity offers their highest rate on a short two year term, the maximum amount of time you can invest with them in a term deposit account. This means that you don’t have to try and guess at what the interest rates should be in five years time, you can invest for just a few years and still earn hundreds or even thousands of dollars in interest before your term ends; you can the reinvest your funds in a new term deposit at the current best interest rate.

Other benefits of a term deposit investment:

• You know from the beginning of your term what your interest rate and return will be. This allows you to decide on plans for your interest returns and your initial investment at the end of the term because you not only know you will be guaranteed that your investment won’t decrease, you also know the exact amount by which it will increase.
• You are not tempted or able to spend your term deposit investment. If you need a little extra incentive to save or you are likely to be tempted if you deposited your investment in a high interest savings account which allows you access to your funds then a term deposit account might be right for you. You know your money is secure in a bank account, but you are unable to withdraw the funds and spend them frivolously.
• You don’t have to have significan’t financial knowledge, or a significan’t amount of time to manage your investment. Once you have chosen an investment amount and term, a term deposit account does not require any further input. Plus, with a Members Equity term deposit account even the initial transfer of your investment can be done by the bank so all you have to do is wait for your investment to be returned and your interest to be paid to a nominated account.

Features of a Members Equity Term Deposit

All Australian term deposit accounts are different and that is why you need to make comparisons of all their features, including:

• Members Equity term deposits allow personal customers only. You cannot open a Members Equity term deposit as a business account.
• You are required to invest a minimum of $5,000. Members Equity wants to make sure you get the best returns possible on your term deposit investment and the more funds there are earning interest, the more interest will be returned to you at the end of the term.
• You must be an Australian citizen or permanent resident to open an account.
• Anyone 12 years or older can open a Members Equity term deposit account.
• The account can be opened in joint names. However, you cannot have more than two joint account holders.
• Interest is calculated daily. This means your term deposit earns you compounding interest as you earn interest on your interest, for a higher return.
• Interest is paid at maturity for terms of 12 months or less. You can choose a term of three months, six months, nine months, 12 months or 24 months. For terms 12 months or less interest is paid into your nominated bank account at the end of the term.
• Your interest is paid annually on a 24 month term. For a 24 month term your interest earned is paid on the 12 month anniversary of you opening the account.
• You have the choice to reinvest or all or part of your investment at maturity. On your application you will need to nominate what to do with your funds at maturity and you may choose to reinvest all your funds, reinvest just part of your funds or add to your funds and reinvest the new amount. Alternatively you can have your entire investment and interest returns paid to your nominated account.You will not receive statements for your term deposit account. This means you are less tempted to access the funds as they have been put out of your mind and it also means the account can remain fee free as you do not need to pay for paper statements.

Compare Members Equity term deposit interest rates:

• On a three month term deposit, the minimum investment term offered, you can earn 5.75% interest.
• On a one year term deposit you can earn 6.50% interest.
• On a two year term deposit, the maximum investment term offered, you can earn 6.50% interest.

To apply for a Members Equity term deposit account:

• Send a completed application form to Members Equity with copies of your supporting identification documents.
• On your application form you will need to provide your Tax File Number, otherwise your interest earnings will be taxed at the highest rate.
• Include your direct debit authority if you want Members Equity to transfer your term deposit investment from your account automatically.
• You can make your investment deposit via cheque.
• Nominate the amount of your investment.
• Choose the term of your investment.
• Include your decision about your funds at maturity.
• You will be notified in writing when your account has been activated.