RACQ Bank Term Deposits
What term deposits does RACQ Bank offer?
At the time of writing, RACQ Bank offers one term deposit product. Features include:
- Minimum deposit of $1,000
- No maximum investment amount
- A single interest rate on offer for deposits up to $1 million
- Rates for monthly interest and deposits over $1 million available on request
What terms are available on RACQ Bank term deposits?
According to RACQ, 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 RACQ Bank term deposits?
RACQ’s term deposits offer customers the choice of receiving interest payments at the following frequencies:
- At Maturity
Additionally, RACQ says interest will be paid at maturity or annually if terms exceed 12 months.
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 RACQ Bank have a notice period and charge an early withdrawal fee for withdrawals?
At the time of writing, RACQ Bank does not specify a notice period.
RACQ charges an early redemption fee if you withdraw your money before the end of the term. At the time of writing, your interest rate will be reduced by 2.00% for the term of the deposit.
RACQ’s website provides more information on any interest rate adjustments or other early withdrawal penalties that may apply.
Does RACQ Bank charge any other fees for term deposits?
At the time of writing, no additional fees were listed by RACQ in relation to its term deposits.
For current information on fees and how they apply, please check the Product Disclosure Statement or contact RACQ.
How to apply for a RACQ Bank term deposit
Before applying for a RACQ term deposit, aim to first compare it against other term deposits on the market to ensure it is the right one for you.
If applying, consider RACQ’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
You may also need to open an RACQ Bank Everyday Account as part of the process of applying for one of its term deposits.
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 RACQ term deposit, just check to see if ‘apply online’ is ticked in Canstar’s term deposit tables and visit RACQ’s website.
According to RACQ, 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 have a Queensland residential address
- You must have a valid Australian mobile phone number
- You must have either an Australian driver’s licence or Australian passport for identification
- You must be investing a minimum deposit of $1,000
- You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)
What happens to a RACQ Bank term deposit when it reaches maturity?
According to RACQ, when a term deposit reaches the end of its term you can access and use the funds in any way you like. RACQ says your balance will have increased according to the interest rates and length of your term.
About RACQ Bank
RACQ was established over a hundred years ago to “champion the rights of motorists”. RACQ Bank was launched in 2017 and offers a range of banking products such as savings accounts, credit cards and home loans. RACQ Bank merged with Queensland Teachers Mutual Bank in November 2016 and says it is pleased to support the education community and offer special deals for teachers.