Horizon Bank 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 Horizon Bank’s term deposits.

What term deposits does Horizon Bank offer?

Horizon Bank, formerly Horizon Credit Union, says it offers a range of fixed rate term deposit options with varying investment durations available.

Its term deposits are separated into deposits between $500-$4999 and deposits over $5,000. The amount of the deposit determines the interest rate and length of maturity available.

At the time of writing, Horizon Bank also says that it pays an extra 0.5% p.a. on Term Deposits (to a maximum of $10,000) for Teen Saver account members.

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What terms are available on Horizon Bank term deposits?

According to Horizon Bank, it offers term deposits with terms (the length of time your money is deposited) typically ranging from a minimum of three months to a maximum of two years for deposits between $500-$4999. For deposits over $5000 terms are available from one month to three 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 Horizon Bank term deposits?

Horizon Bank’s term deposits offer customers the choice of receiving interest payments at maturity, annually or monthly, depending on the size of the deposit.

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

At the time of writing, Horizon Bank does not require you to provide notice of days if you wish to access your money early. If you choose to withdraw money from your deposit early, the money withdrawn will be paid at the rate available at the time of withdrawal.

Horizon Bank does not charge an early withdrawal fee, however it says the money withdrawn early will be paid the Redisavings rate available at the time of withdrawal. If the remaining deposit after your withdrawal is less than $500, the term deposit account will be closed.

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

Does Horizon Bank charge any other fees for term deposits?

According to Horizon Bank, the following fees apply to it term deposits:

  • Establishment fee: $100
  • Deposit security agreement fee: $150

Other fees may also apply. For more information on fees and how they could apply, please check the Product Disclosure Statement or contact Horizon Bank.

How to apply for a Horizon Bank term deposit

Before applying for a Horizon Bank 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 Horizon 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 see if you can apply online for a Horizon Bank term deposit, just check to see if ‘apply online’ is ticked in Canstar’s term deposit tables and visit Horizon Bank’s website.

Eligibility criteria

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

  • You must be a member of Horizon Bank
  • You must be an Australian resident
  • You must be investing a minimum deposit of $500
  • You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)

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

According to Horizon Bank, you will be notified when your term deposit is about to mature and you can either maintain or vary your original instructions.

At maturity, the principal can be reinvested or transferred to another Horizon Bank account. The interest can be compounded with the original deposit and reinvested or transferred to another Horizon Bank account.

Horizon Bank says that it will allow seven days after maturity for you to vary instructions before it imposes a reduced interest penalty. If you do not provide instructions, the principal and interest will be reinvested for a similar term at the applicable rate.

About Horizon Bank

Formerly known as Horizon Credit Union, Horizon Bank is a customer-owned banking institution that began in 1964 and became affiliated with the New South Wales Credit Union League (now Cuscal) in 1965. 

Horizon Bank says it adheres to the Customer Owned Banking Code of Practice (COBCOP). In September 2019 Horizon Credit Union began trading under the name Horizon Bank.

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