How do I become a customer?
To gain access to our term deposits you must open a RaboDirect Savings Account first.
Simply complete the online application form by visiting www.rabodirect.com.au and select open an account. p>
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How do I open a term deposit account?
First, you need to open a savings account. Once you have activated your account on the secure Internet banking site you can start a term deposit online (simply go to the term deposit menu.)
What investment periods are available?
You can select from any one of the following terms:
- 1 month
- 3 months
- 6 months
- 9 months
- 1 year
- 2 years
- 3 years
- 4 years
- 5 years
What interest payment options are available?
On terms of one year and over, you can choose to have your interest paid back to the RaboDirect account which you took it from at monthly, quarterly, semi-annually and annually intervals see this table for our current rates and payment options.
Can I change the interest payment option after I have set it up?
To change the interest payment option after a term deposit is set up, would mean breaking the existing term deposit and opening another one. This will incur an early termination fee, see FAQ below, "Is there a penalty for breaking my term deposit?".
How do I choose a specific term and interest payment option?
Simply log onto to your secure banking with your Digipass, choose "New term deposit" from the left hand menu, and make your selection from the drop down menus of term, interest payment option and rate, and how much you would like to invest, then follow the on screen instructions to complete.
Does the interest rate stay the same regardless of the interest payment option I choose?
The interest rate will vary depending on the interest payment option chosen - see this table for our current rates and payment options.
How will I know what the payments will be when I choose an interest payment option and term?
Use this calculator to show what your estimated interest payments will be and what the difference is to the annual or at maturity interest earned.
Is there a minimum amount I must open a term deposit with?
There is a minimum opening deposit of $1000.
Is there a penalty for breaking my term deposit?
Yes, fees are applicable. Please refer to the term deposit terms and conditions.
How many term deposit accounts can I open?
As many as you like.
When is interest paid?
For investment periods of 1 year or less, interest is paid on the maturity of the term deposit.
For investment periods of 2 to 5 years, interest is paid annually on the anniversary of the investment and at maturity.
Can I choose to have interest added to the principal automatically?
Yes. For investment terms of 1 year or less you may select to capitalise your interest payments in conjunction with our automatic re-investment option. The interest will automatically be added to the original sum and incorporated in the new term investment.
What does 'automatic re-investment' mean?
If you select automatic re-investment, upon maturity your money will be re-invested for another term of the same length. The prevailing interest rate at the time of re-investment will apply to the new term. For term deposits of 1 year or less you can also choose to capitalise your interest in conjunction with your automatic re-investment option. In this case your interest earned on your maturing deposit will be added automatically to the principal balance of the new deposit.
How do I cancel my request to automatically re-invest my deposit upon maturity?
At any time prior to the maturity of the term deposit you can cancel your request online by using the 'Cancel automatic re-investment' instruction.
What does 'Capitalise Interest' mean?
It simply means that the interest earned on a maturing term deposit will be added to the principal balance of your new term deposit.
If you don't want this to happen when you create the term deposit, you can simply nominate to have the interest paid to your savings account.
This feature is only available for investments with terms of one year or less.
Can I view term deposit related transactions such as interest payments?
Yes. All transactions relating to current and matured term deposits can be viewed by clicking on your term deposit contract number within the Internet Banking site. To see your matured term deposits, you will need to go to the term deposit menu and select 'Matured Term Deposits' from the menu.
Interest payments, withholding tax deductions, automatic re-investments and maturity transactions are all available on the term deposit transaction details.
Can I view my matured term deposits?
Yes. To see your matured term deposits you will need to go to the term deposit menu and select 'Matured Term Deposits' from the menu.
What if I don't supply a Tax File Number?
If you do not provide a Tax File Number (TFN) or TFN exemption, we are required to deduct withholding tax at the highest rate.
What is withholding tax?
Withholding tax is a tax deducted from the gross amount of interest paid to you and will apply where your have not provided us with a valid Tax File Number (TFN) or TFN exemption. In the case of joint accounts, both account holders are required to supply a valid TFN.
When is withholding tax deducted?
In the event that you have not provided us with your Tax File Number (TFN) or TFN exemption RaboDirect will deduct withholding tax at the time we credit interest to your account.
