Innovation Excellence Awards 2017: Rural Bank Farm Management Deposit (FMD) Offset Account

Introducing the new FMD Offset Account from Rural Bank, winner of a 2017 CANSTAR Innovation Excellence Award.

For the first time, farmers in Australia can now offset the interest on their business loan using their farm management deposit (FMD), with an FMD Offset Account from Rural Bank.

We are pleased to congratulate Rural Bank on this innovative product, which has won a 2017 CANSTAR Innovation Excellence Award.

Legislative amendments that applied from 1 July 2016 onwards have removed the law that prevents an FMD from being used as an offset account against a primary production business debt (a farmer’s agribusiness loan).

CANSTAR 2017 - Innovation Excellence Award

Compare Agribusiness Solutions

What is the FMD Offset Account?

Rural Bank launched its FMD Offset account on 19 December 2016 to enable farmers to benefit from changes to the farm management deposit scheme.

The key benefit of this product is that as an offset account, it reduces interest costs on eligible primary production business loans, while still retaining the benefits of a farm management deposit (FMD).

This means the FMD holder can draw on their own funds in times of need without borrowing additional funds from their bank.

This provides customers with greater flexibility in their balance sheet, as they can set side pre-tax income from primary production during years of high income, which can then be drawn on in future years.

This can help farmers to manage their exposure to natural disasters, climate, and market variability, by helping them to put aside funds to use in rough times.

 

Standout Features of the FMD Offset Account

The main features of the FMD Offset Account include:

  • Full offset: 100% of the FMD Offset Account balance is offset against the linked eligible Rural Bank Variable Rate Term Loan balance.
  • Simple fees: One low upfront linkage fee is charged (per FMD Offset Account linked to an eligible Rural Bank Term Loan).

Canstar’s Verdict

At the time of the award submissions, the Rural Bank FMD Offset Account is the only farm management deposit offset solution available in Australia.

This product is an innovative solution for farmers looking for new ways of managing their loans across seasonal highs and lows.

Compare Agribusiness Solutions

Every year, CANSTAR looks for the products being launched in the area of financial services to make our lives easier and more convenient. The products that CANSTAR judges to be the most innovative in their field are awarded a CANSTAR Innovation Excellence Award.

For more innovative and award-winning products, visit the CANSTAR Innovation Excellence Awards for 2017:

CANSTAR Innovation Awards 2017


CANSTAR is an information provider and in giving you product information it is not making any suggestion or recommendation about a particular product. This information has been prepared without taking into account your individual objectives, financial circumstances, or needs. Before you decide whether or not to acquire a particular financial product you should assess whether it is appropriate for you in the light of your own personal circumstances, having regard to your own objectives, financial situation, and needs. You may wish to obtain financial advice from a suitably qualified adviser before making any decision to acquire a financial product. Please refer to Canstar’s
Financial Services and Credit Guide (FSCG) for more information, and read our detailed disclosure, important notes and liability disclaimer.

The inclusions mentioned represent a selection of what is covered at the time of writing. Additional terms and conditions may apply to different features. Additional fees may apply to the product. Please ensure that you read the product disclosure statement (PDS) to determine all the current options and inclusions for the product you are considering.

Sponsored products are paid advertisements and do not include all providers. Canstar receives a fee for referring you to the advertiser. Canstar is not giving you advice in relation to sponsored products.

Products displayed above that are not “Sponsored” are sorted as referenced in the introductory text and then alphabetically by company. Canstar may receive a fee for referral of leads from these products. See How We Get Paid for further information.

Back to Agribusiness

Share this article

Enjoyed reading this article?

Sign up to receive more news like this straight to your inbox

By subscribing you agree to the Canstar Privacy Policy.

Thanks for signing up!

Good things are coming your way.