NAB Term Deposits

NAB Term Deposit

A term deposit is a simple and cost effective investment option, especially when you consider the National Australia Bank term deposit accounts, which have no opening or ongoing fees. However, just because a NAB term deposit is simple to set up, doesn’t mean that you don’t have to think carefully about your investment too, this is why we have comparisons and details of NAB term deposits here to help you choose the best option.

A term deposit investment is when you take a set amount of money and invest it for a set term, at a set interest rate. However, your investment is not set until it is opened and you still have to decide what that investment amount will be, how long you want to set the investment for and at what interest rate. And yes, you can choose all of those variables and more with a NAB term deposit.

How to choose the best term deposit options:

• Choose an investment amount which you will be happy to go without while it is invested, as term deposits will penalise your returns for early exits.
• Choose a term which is long enough to attract a high interest rate, but not so long that you begin to feel stretched without access to your funds, a longer investment term generally offers a higher interest rate.
• Choose an interest rate which is competitive and will earn you returns higher than the inflation rate over the term of the investment, and will earn you a return which helps you well on your way to your financial and savings goals.
• Choose to update your term deposit interest rate when NAB’s interest rate changes. This is an option which is exclusive to NAB, as you can open a specialised Trade Up term deposit account so you can always earn the best rate on your investments.

Why You Need a NAB Term Deposit

When the share market is still recovering and the world economies are not all in the same strengthened state as our own, a term deposit is a smart and secure investment. National Australia Bank is one of Australia’s Big Four Banks and as such locking in your investment with such a big name will offer you a sense of security. Now that you know your investment will be waiting for you at the end of your chosen term, how else can you benefit from a term deposit:

• NAB term deposit accounts are fee free so you won’t lose any of your investment to monthly fees, transaction fees or any charges at maturity.
• Your term deposit is secured out of your reach so you are not tempted to spend it. This is important if you are really serious about saving and investing for your future, but have never really been a responsible saver. With ‚Äòenforced saving’ you know from the beginning that you will earn a certain return on your investment and you won’t be able to spend your savings before you reach that goal.
• Your term deposit earns interest without you. If you don’t feel as though you have the time or the inclination to manage your investments, you don’t have to feel as though you’re missing out on high returns. When you choose a NAB term deposit, you know that you have chosen the best investment, because you’ve compared your options right here.

Features of a NAB Term Deposit Account

The NAB term deposit accounts are fee free to open and use, however, it is important you check the fee structure of the account from which you are transferring your initial deposit, and the account to which your returns will be paid as there may be transaction or withdrawal limits which incur fees.

Other features to consider include:

• Applications can be done over the phone or in branch.
• You can choose a term for your investment, anywhere from one month to five years.
• When you invest more than $5,000 for 12 months or more, you can choose for your interest to be paid monthly, quarterly, six monthly or annually.
• Interest can be paid by cheque, to a linked account, to an existing personal account, or can be reinvested as a new NAB term deposit automatically.
• On investments over $5,000 you can earn 5.00% interest paid at maturity over four months, 4.00% interest paid at maturity over six months, and up to 6.75% interest paid at maturity over five years.

Compare the Trade Up Option on NAB Term Deposits

Locking in an interest rate on your term deposit when interest rates and the financial market are going down, you’re unlikely to feel as though you’re missing out. However, at the moment the RBA is raising interest rates and the Australian economy is strengthening, so locking in a term deposit interest rate could see higher rates applied to the same term deposit products you’re in, further down the track.

Benefits of a Trade Up term deposit account:

• Opening a Trade Up term deposit account your investment will start with a competitive rate.
• If interest rates rise, you can trade up to the new higher interest rate once, over the course of your term deposit.
• You can trade up a maximum of 3.00% higher than your original term deposit rate.
• Your original interest rate applies to your investment up to the point you trade up, after you trade up your new interest rate applies for the remainder of the term.
• You cannot trade up within the last seven days of your term.
• To boost your investment further, you have the option to add additional funds to your investment at the same time as you trade up your interest rate.
• A Trade Up term deposit account is fixed for a minimum of two years.
• A minimum $5,000 deposit is required.

To secure your savings in a term deposit where they are guaranteed a set rate of return, a NAB term deposit is a flexible and feature-packed option. Compare other term deposit accounts available on Savings Account Finder™ and travel through our secure link to the NAB website to find out more, or to apply for a term deposit investment.