The Mutual 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 The Mutual Bank’s term deposits.

What term deposits does The Mutual Bank offer?

At the time of writing, The Mutual Bank offers two term deposit products:  a standard Term Deposit and a Sovereign Term Deposit. Term Deposits are available for investments from $1,000 while Sovereign Term Deposits are available for amounts over $100,000.

Features include:

  • No account keeping fees
  • Optional interest payment frequencies
  • Negotiable interest rates available on Sovereign Term Deposits
  • Higher interest rates are available for larger deposit amounts with Mutual Bank’s standard term deposit product

Compare Term Deposits

What terms are available on The Mutual Bank’s term deposits?

According to The Mutual Bank, it offers term deposits with terms (the length of time your money is deposited) ranging from a minimum of three months to a maximum of three years.

The Mutual Bank’s Sovereign Term Deposits have terms available from 30 days 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 The Mutual Bank term deposits?

Depending on the minimum balance requirement and term of investment, The Mutual Bank’s term deposits offer customers the choice of receiving interest payments at the following frequencies:

  1. Monthly
  2. Quarterly
  3. Six monthly
  4. Annually
  5. 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 The Mutual Bank have a notice period and charge an early withdrawal fee for withdrawals?

While no notice period is specified, according to The Mutual Bank, if you withdraw your funds prior to the maturity date you will not be entitled to interest at the rate which was fixed and applied prior to the maturity date. The Mutual Bank will apply a reduced interest rate. At the time of writing, the reduced interest rate is 0.50% per annum.  

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

Does The Mutual Bank charge any other fees for term deposits?

The Mutual Bank does not charge any account keeping fees. Additionally, at the time of writing, no additional fees were listed by The Mutual Bank in relation to its term deposits.

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

How to apply for a The Mutual Bank term deposit

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

Eligibility criteria

According to The Mutual Bank, 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 (for Term Deposit) or $100,000 (for Sovereign Term Deposit)
  • You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)

What happens to a The Mutual Bank 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 into a new term deposit.

If you do not give instructions prior to maturity, The Mutual Bank says it will automatically re-invest your funds for the same or, if not available, a similar term at a new interest rate.

About The Mutual Bank

The Mutual says it has been serving the people of Maitland and the Hunter Valley since its establishment in 1888. Originally established as a building society, it changed to a member-owned bank in March 2019.

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