Summerland Credit Union Term Deposits

Summerland Credit Union

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 Summerland Credit Union’s term deposits.

What term deposits does Summerland Credit Union offer?

At the time of writing, Summerland Credit Union offers one term deposit product. Features include:

  • Minimum deposit amount of $1,000
  • Automatic rollover at maturity
  • Monthly interest option available for all terms
  • Higher interest rates available for higher deposit amounts

Compare Term Deposits

What terms are available on Summerland Credit Union term deposits? 

According to Summerland Credit Union, 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 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 Summerland Credit Union’s term deposits?

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

  1. Monthly
  2. At maturity

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 Summerland Credit Union have a notice period and charge an early withdrawal fee for withdrawals?

Summerland Credit Union says it may consider a request for the earlier release of all or part of your money in certain circumstances. At the time of writing, no notice period is stated.

Summerland charges a penalty if you withdraw your money before the end of the term. At the time of writing, if your term deposit is less than $5,000, Summerland says it will deduct 0.30% from your current interest rate. If your term deposit is more than $5,000, Summerland says it will deduct 1.50% from your current interest rate.

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

Does Summerland Credit Union charge any other fees for term deposits?

At the time of writing, no additional fees were listed by Summerland in relation to its term deposits.

For current information on fees and how they apply, please check the PDS or contact Summerland.

How to apply for a Summerland Credit Union term deposit

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

Eligibility criteria

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

  • 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 Summerland Credit Union term deposit when it reaches maturity?

Generally, when a term deposit reaches the end of its term you can either withdraw the funds or reinvest the funds for a new term deposit.

Summerland says it will send you a letter prior to your maturity date, advising you of the options for reinvestment.

If you do not provide instructions prior to the maturity date, Summerland says it will reinvest your funds at the current interest rate for the same term as your initial investment. According to Summerland, you may contact it up to seven days after the maturity date to change either the term of the new deposit or change the amount you want to reinvest, without penalty.

About Summerland Credit Union

Summerland was founded in 1964 to help North Coast families manage their finances and grow their wealth. As a customer owned organisation, Summerland says it operates by the values that are important to its greater community. One of its core values is sustainability and, as such, Summerland says it actively pursues environmentally sustainable activities and business practices. It also does not directly invest or loan to fossil fuel/CSG mining industries.

Written by: Tamika Seeto | Last updated: April 26, 2019