Term deposits

Frequently asked questions

• How much money do I need to open a term deposit?

  The minimum deposit to open a term deposit account with P&N Bank is $5,000, and the shortest term available is two months.

• What's the difference between a term deposit and a savings account?

  With savings accounts, you can add to and withdraw from them as you please. There can be some restrictions around the interest payable if you make withdrawals, however, you can access the money in the account whenever it suits you. Interest rates on these accounts are generally variable and subject to change at any time.

  With term deposits, an amount of your choice (usually a minimum amount of $5,000) is locked away for a set period of time at a fixed interest rate. These rates can often be higher than a standard savings account, however, the money cannot be accessed until the fixed term is over (when the term deposit matures). If you choose to break the term to access the funds early, the interest payments will often be forfeited.

• How do I set up a term deposit account?

  You can open a term deposit online if you're an existing member, over the phone, or in person, provided you have the minimum required amount of $5,000 in an existing account.

  Please see how to apply for more information.

• How can I manage my term deposit account after I create it?

  You can manage your term deposit and see what your balance is through Internet Banking.

• Can I get a term deposit with a variable interest rate?

  No, term deposits always have a fixed rate as this is used to guarantee the return to the account holder (you). A variable interest rate will fluctuate with the market, making it impossible to say with certainty how much your investment would generate.

  However, if you request an early withdrawal of your term deposit before it reaches maturity (but after 30 days) then your interest will be paid based on the prevailing RBA cash rate at the time.

• How much money will I get back from my term deposit?

  With term deposits, your return on investment depends on how much money you commit, your investment term, and whether you want interest paid monthly, quarterly, annually or at your specified maturity date.

  Use our term deposit calculator to see how much your money can grow over time.

• Are term deposits a safe investment?

  Like savings accounts, term deposits are a low-risk investment protected by the Australian Government Guarantee. This means that if the unexpected should occur and the bank goes under, your money would be paid back to you by the government.

• What is the Financial Claims Scheme?

  The Financial Claims Scheme (FCS) is an Australian Government scheme that provides protection and quick access to deposits in banks, building societies and credit unions in the unlikely event that one of these financial institutions fails.

  Under the FCS, certain deposits are protected up to a limit of $250,000 for each account holder at any bank, building society, credit union or other authorised deposit-taking institution (ADI) that is incorporated in Australia and authorised by the Australian Prudential Regulation Authority (APRA).

  The FCS can only come into effect if it is activated by the Australian Government when an institution fails. Once activated, the FCS will be administered by APRA.