Adelaide Bank offers term deposits ranging from one month to five years. Rates are relatively competitive, especially for short- to medium-term investments, but they aren’t always the highest in the market. 

What are the key features of Adelaide Bank’s term deposits?

These are correct at the time of writing and are subject to change.

Depositors can select the amount they’d like to invest, determine the term duration, and choose the frequency of interest payments depending on the length of the chosen fixed term. 

• 179 days or less – paid at maturity

• 180 to 364 days – paid monthly, at maturity

• 365 days and over – paid monthly, quarterly, semi-annually, annually, at maturity

At the end of the term, depositors have the option to withdraw part or all of their funds, roll off the principal and interest earned to the same investment term, or reinvest for a different term. They may also contact the bank if they wish to reinvest and increase their deposits. 

What are the fees charged from term depositors?

While there is no ongoing account-keeping fee for holding a term deposit, withdrawing funds before the term ends does incur a cost in the form of interest rate reduction. 

To work out the interest rate reduction, the amount being withdrawn will be multiplied by the difference between the fixed interest rate and the interest rate that would have been applicable if the actual term was chosen at the time of investment. The fee is charged on account closure or when interest is paid.

Depositors are required to provide 31 days’ notice – in writing – to withdraw their funds before maturity. 

Who can open a term deposit with Adelaide Bank?

Savers interested in opening a term deposit with Adelaide Bank must be 18 years or older and a resident of Australia to become eligible. Individuals, companies, trusts, and co-operatives can open an account. 

Applicants would be required to provide the following information:

• Proof of identity (driver’s licence, passport)

• Residential address

• Date of birth

• Details of directors and shareholders (for business entities)

• Details of trustee and beneficiaries (for trusts)

• Information about activities and reason for opening an account

While not mandatory, it is highly advised to also provide a tax file number (TFN) or an Australian Business Number (ABN) to prevent interest income from being taxed at the highest marginal rate. 

A minimum deposit of $5,000 is required to open an account and accrue interest. 

New customers opening an account may visit a branch or complete the forms online. Existing customers, on the other hand, may set up a new term deposit through the bank’s online banking portal.