Arab Bank Term Deposits

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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 Arab Bank’s term deposits.

What term deposits does Arab Bank offer?

Arab Bank offers a single term deposit product, its Fixed Term Deposit. Arab Bank says this term deposit comes with features that include:

  • Interest calculated daily
  • Automatic rollover available
  • No minimum deposit

Click below to compare term deposits on our database, with terms, deposit amounts and interest paid options tailored to your preferences.

Compare Term Deposits

What terms are available on Arab Bank term deposits?

According to Arab Bank, 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 sixty months (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 Arab Bank term deposits?

Arab Bank’s term deposits offer customers the choice of receiving interest payments either at maturity, or at yearly intervals if the selected term is two years or longer.

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 Arab Bank have a notice period and charge an early withdrawal fee for withdrawals?

At the time of writing, Arab Bank requires a day’s notice given to your branch of choice for withdrawals of $2,000 or more.

Arab Bank charges an interest rate adjustment if you withdraw your money before the end of the term. This adjustment will vary depending on how much of the term has elapsed, and the potential adjustments are as follows:

Percentage of term elapsed Adjustment to be applied as a % of the interest
0% to less than 30% 100%
30% to less than 40% 90%
40% to less than 60% 70%
60% to less than 80% 50%
80% to less than 100% 30%

Source: Arab Bank, as at April 2019

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

Does Arab Bank charge any other fees for term deposits?

According to Arab Bank, it does not charge any specific fees for account opening or keeping on its term deposits. However, you may incur a fee if you opt to receive paper statements or information retrieval.

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

How to apply for a Arab Bank term deposit

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

Compare Term Deposits

If applying, consider Arab Bank’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 apply online for an Arab Bank term deposit, you must be an existing member of Arab Bank with a transaction account and access to their internet banking system.

Eligibility criteria

According to Arab Bank, 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 an Australian resident
  • You must be investing a minimum deposit of $1
  • You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)

What happens to a Arab Bank term deposit when it reaches maturity?

According to Arab Bank, when your term deposit reaches the end of its term you can choose to have it either reinvested into a new term deposit, paid into your nominated Arab Bank transaction account, or withdrawn.

Arab Bank notes that unless you advise them that you want your term deposit paid into an account or withdrawn, it will be reinvested at maturity for the same period as the previous term deposit by default.

About Arab Bank

Arab Bank Australia was founded in 1986 and now has seven branches across Sydney and Melbourne.

In addition to offering standard banking services, Arab Australia Bank says it specialises in international trade in the Middle East and North Africa. It is a subsidiary of Arab Bank, the first private sector financial institution in the Arabian Peninsula, which has 500 branches in 30 countries across five different continents.

In addition to its financial services, according to Arab Bank Australia it also invests in medical research, community groups, and charitable organisations.

Written by: James Hurwood | Last updated: April 26, 2019