AMP Term Deposits

If you’re looking for a way to invest money for a set period at a fixed interest rate, then you might be interested in learning more about AMP’s term deposits.

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What terms are available on AMP term deposits? 

According to AMP, it offers term deposits with terms (the length of time your money is deposited) typically ranging from a minimum of one month to a maximum of five years.

You can use Canstar’s term deposit calculator to help you work out what term length might be suitable for you. One factor to consider is that longer terms typically come with higher interest rates, but you would have to wait longer to benefit from the higher interest rate that can come with reaching the maturity date.

When deciding on a term deposit, it’s a good idea to carefully consider the length of the investment term, as some products may charge a fee and require a certain notice period if you need to access your money early.

When is interest paid on AMP term deposits?

AMP’s term deposits offer customers the choice of receiving interest payments at the following frequencies:

  1. Monthly
  2. Every three months
  3. Every six months
  4. Annually
  5. At the end of the term

It’s worth remembering that the option you select may have an impact on the rate of interest you earn.

Canstar’s term deposit calculator can help you decide how you can maximise the interest paid on your term deposit.

Does AMP have a notice period and charge an early withdrawal fee for withdrawals?

At the time of writing, if your term deposit is for two months or longer, AMP requires you to provide notice of 31 days if you wish to access your money early. If your term deposit has less than 31 days until it matures, then AMP says you can only withdraw your money at the end of the term.

AMP charges an interest rate adjustment if you withdraw your money before the end of the term. For example, according to AMP, if less than 25% of your term has been completed then they will apply a 2.00% p.a. Interest rate adjustment.

AMP’s website and Product Disclosure Statement provide more information on any interest adjustments or other early withdrawal penalties that may apply.

Does AMP charge any other fees for term deposits?

At the time of writing, no account-keeping fees apply to AMP’s Term Deposits.

For current information on fees and how they apply, please check the Product Disclosure Statement or contact AMP.

How to apply for an AMP term deposit

Before applying for an AMP term deposit, aim to first compare it against other term deposits on the market to ensure it is the right one for you.

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If applying, consider AMP’s eligibility criteria (below) and what you might need to have on hand, such as:

  • Your TFN (Tax File Number)
  • Proof of ID, such as your driver’s licence or passport
  • Personal details, including your residential address, contact information and potentially information on your current job

If you’re applying for a term deposit on behalf of a business, self-managed super fund or other type of entity or organisation, you may need to supply different documents to those listed above. The terms and conditions that apply to your term deposit may be slightly different.

To see if you can apply online for an AMP term deposit, just check to see if ‘apply online’ is ticked in Canstar’s term deposit tables and visit AMP’s website.

Eligibility criteria

According to AMP, when applying for a term deposit, you will need to meet the following eligibility criteria:

  • You must be at least 18 years old
  • You must be investing a minimum deposit of $5,000, or a minimum of $25,000 for terms less than three months
  • You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)

What happens to an AMP term deposit when it reaches maturity?

According to AMP, when a term deposit reaches the end of its term, you can instruct AMP to:

  • Reinvest the principal and interest due at maturity for another term (available for terms one year or less)
  • Reinvest the principal only for another term, and have the interest due at maturity paid to you
  • Pay the principal plus interest due at maturity paid to you

AMP says that if you don’t provide instructions prior to the maturity date, your term deposit will be closed and the principal and any interest due will be paid to you.

About AMP

AMP was founded in 1849 as the Australian Mutual Provident Society. It says it was set up with the aim that every individual customer “should have the power to control their own life”.

According to AMP, it now employs more than 5,400 employees around the world and more than 3,500 financial advisers in Australia and New Zealand.

Written by: Tamika Seeto | Last updated: February 13, 2019