RaboDirect Term Deposit
What happens when I click Apply Now?
- Clicking Apply will take you to your Online Application on the bank's website. You do not need to be a customer of this bank to apply.
- Your application will typically take you no more than 10-15 minutes to complete
- Tip: Have your Tax File Number ready as it will speed up your application.
- In most cases, your new savings account will be setup immediately after you apply.
The reason many people shy away from term deposit investments is that to take advantage of the attractive high interest rates, you often have to lock away your savings for an extended period of time. Especially in the wake of the Global Financial Crisis, few Australians are willing to sign over their savings in a term deposit for five years when the bank they are singing with could be anywhere at the end of that term.
By investing in a RaboDirect Term Deposit, you don’t have to worry about the security of your investment as RaboDirect is the only bank in Australia with a AAA credit rating. Therefore, you know your term deposit is in safe hands in the world’s safest bank and that when you come back to it in two, three, four or five years it will be there waiting for you, having accumulated an attractive amount of interest along the way.
Features of a RaboDirect Term Deposit
Modern term deposit accounts are not the static and rigid accounts many people think of as the domain of already wealthy investors. Instead, a RaboDirect Term Deposit can be opened with as little as $1,000 to invest, for a period of your choosing, anywhere between one month and five years. The features included with your term deposit at RaboDirect include:
- A competitive and secured interest rate for the entire length of your term deposit.
- The security of knowing your return is secured, and will not be affected by other financial or world events.
- The option to have your return paid monthly, quarterly, six monthly or yearly on term deposits over one year.
- A fast and easy online application, with the option of a friendly and local customer service centre on call.
- Interest paid to your linked, fee free, RaboDirect savings account.
- On term deposits of less than one year interest is calculated at maturity, for terms more than one year, interest is calculated yearly.
- The option to automatically re-invest just the interest you have earned, just the principal or the combined amount, for a new term.
- The ability to change your mind during the term about whether you want to re-invest at maturity; by logging into your account online you can easily choose the ‚Äòcancel automatic re-investment’ option.
- If you choose not to re-invest at the end of your term, your funds will be automatically transferred into your linked savings account.
How Much Can You Earn from a RaboDirect Term Deposit
The amount you can earn from a RaboDirect Term Deposit depends entirely on how much you invest, and for how long. Current terms and interest rates are:
- 1 month, at 4.00%
- 3 months, at 5.10%
- 6 months, at 5.40%
- 1 year, at 5.45%
- 2 years, at 5.10%
- 3 years, at 5.30%
- 4 years, at 5.50%
- 5 years, at 6.00%
RaboDirect also offers you more term deposit options than the Big Four Banks combined, as ANZ, Commonwealth Bank, NAB or Westpac don’t offer a term deposit of under one year.
If you’re still not sure how the interest rates and terms relate to your situation and investment plans, RaboDirect provides several term deposit calculators to help you visual your goals, you can choose the deposit you intend to invest and the term you’d like to invest for and see an instant calculation of the interest you will earn over that period. If you have a specific investment income in mind, you can also enter your desired monthly return for example, and the RaboDirect calculators can tell you how much you need to invest, and for how long, to reach that outcome.
To Open a RaboDirect Term Deposit
Opening and activating your RaboDirect Term Deposit can be done entirely online. If you already have a RaboDirect account, you simply need to log in and open a term deposit account within the online banking system. If you don’t already have an account, you just need to apply for a RaboDirect fee free, on call savings account. The online application takes less than ten minutes and you need to enter your personal details, Tax File Number and provide the details of a linked bank account to transfer money into and out of your RaboDirect account.
You will also have to nominate an initial deposit which can be as little as $1 and at the same time you can set up a direct transfer from your linked account to your savings account with RaboDirect. RaboDirect also uses a Digipass to ensure the security of your online account, and you will have a unique PIN generated each time you log into your account.
With a RaboDirect Term Deposit anyone can put their savings to work and all you need is a minimum of $1,000 deposit for the opportunity to make a solid return on your investment. For such a high rate of return, on an account which is so quick to set up and so easy to use, you can invest and re-invest to meet your savings goals and financial dreams right now.
Read the official terms and conditions
Related posts:
- RaboDirect Term Deposit Rates
- Best Time to Lock in a Term Deposit?
- Australia’s Top Term Deposit Accounts
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