Australian Unity 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 Australian Unity’s term deposits.

What term deposits does Australian Unity offer?

At the time of writing, Australian Unity offers a single term deposit option. It allows investors to:

  • Make a deposit of $5,000 or more
  • Choose a term from 1 month to 5 years
  • Select a range of interest payment options

Australian Unity also offers mobile tracking for your term through internet banking or their mobile banking app, and a ‘low touch’ automatic rollover of your term at maturity.

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What terms are available on Australian Unity term deposits?

According to Australian Unity, 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 Australian Unity term deposits?

The frequency of interest paid depends on the duration of Australian Unity term deposit you choose. If the term is less than 12 months, interest is paid at maturity. If the investment term is 12 months, interest payments may be monthly, quarterly, half yearly, or at maturity. For terms 12 months or over, interest can be paid half yearly or annually.

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.

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

If you wish to withdraw from your term deposit before it matures you will need to speak with Australian Unity. If your withdrawal request is approved you may incur an interest rate adjustment penalty and administration fee.

This adjustment will depend on how much of the full term had elapsed.

Does Australian Unity charge any other fees for term deposits?

At the time of writing, Australian Unity says it charges no establishment or ongoing fees in relation to its term deposits.

For current information on fees and how they apply, please check with Australian Unity.

How to apply for an Australian Unity term deposit

Before applying for an Australian Unity 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 Australian Unity’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.

After applying for one if its term deposits, Australian Unity says that it will contact you by phone within three days.

Eligibility criteria

According to Australian Unity, 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 reside in Australia
  • You must have an Australian Unity transaction account and the account details on hand
  • You must be investing a minimum deposit of $5000
  • You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)

What happens to an Australian Unity term deposit when it reaches maturity?

According to Australian Unity, on maturity it will reinvest your term deposit per your instructions. If you have not provided instructions, Australian Unity says it will automatically roll it over for the same term at the applicable interest rate

Contact Australian Unity for more information regarding what happens to your term deposit at maturity.

About Australian Unity

Australian Unity was founded in 1840 as Manchester Unity in Victoria and South Australia and says it was initially formed as a friendly society with the goal of looking after the health and wellbeing of its members. Today, Australian Unity employs more than 7,500 people providing health, wealth and living services to around one million Australians.

Australian Unity is a customer-owned banking institution.

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Written by: Eliza Parry-Okeden | Last updated: May 31, 2019