Target Bonus Account

This account has no account-keeping or transaction fees, with a base interest rate of 0.01% p.a.  However, this is boosted to 0.45% p.a. with bonus interest if you make a deposit but no withdrawals during the month.  Interest is paid monthly.  It’s also possible for a couple to open a joint Target Bonus savings account.

 Online Saver

The Online Saver account comes with a 0.40% p.a. basic interest rate and a bonus rate of 0.10% p.a. for the first four months of your new account.  After the initial four-month period has ended, your interest returns to the basic 0.40% p.a. rate for the remainder of the life of the account.  However, there aren’t any restrictions or withdrawal limits on this account, unlike the Target Bonus account.

 Christmas Club

The Christmas Club account is an unusual savings account which offers a 0.60% p.a. interest rate, but withdrawals are only permitted from 1 November until 31 January each year.  This means the savings account is locked to withdrawals for the remaining months of the year, February through to October.

The idea of Christmas savings accounts is, of course, to encourage you to make deposits throughout the year whenever you have a little spare cash until it’s nearly time to buy presents.  There are no monthly fees or deposit conditions attached to this account. Such accounts can be a useful way to regularly save towards a Christmas goal throughout the year.  You can use Savvy’s savings goal calculator to work out how much you need to deposit each month to reach your savings goal to buy presents in December.

Term Deposits

Like all of the medium to larger banks, Heritage Bank offers a wide variety of term deposits.  Their minimum deposit amount is $1,000, with terms ranging from one month up to five years.  The interest rates on offer as of June 2022 are as follows:

• One month: 0.20% p.a.
• Two months: 0.30% p.a.
• Three months: 0.35% p.a.
• Four to eight months: 0.40% p.a.
• Nine months: 0.90% p.a.
• Ten and 11 months: 0.40% p.a.
• 12 months: 1.00% p.a.
• 24 months: 1.20% p.a.
• 36 months: 2.00% p.a.
• 48 months: 2.25% p.a.
• 60 months: 2.50% p.a.

However, these rates only apply if interest is either paid at the maturity of the term or annually for terms over one year.  If you require your interest to be paid more frequently, there’s a 0.05% p.a. reduction from the advertised interest rate.

Farm Management Deposits

Farm management deposits (FMDs) are an Australian government scheme designed to allow primary producers to deposit funds in a good year interest-free and use those funds to help tide them over the lean years.

Any deposits into a registered farm management deposit scheme up to $800,000 per year reduce the farmer’s taxable income that year on a dollar-for-dollar basis.  These funds can be withdrawn in later years when required and the income tax due on that income can be paid every year, as the money is withdrawn and used in leaner years.

 Heritage Bank offers two FMD savings options:

• an At Call Savings Account, with a current variable interest rate for up to $50,000 of 0.45% p.a., or 0.50% p.a. for balances over $50,000 up to $800,000, which is the maximum operating balance.
• a Fixed Term Investment for either 12 or 24 months. The one-year fixed term interest rate is currently 1.00% p.a. and the two-year option has an interest rate of 1.20% p.a.

The eligibility for a FMD is regulated by Federal Government; you have to be a registered primary producer under Australian taxation law.

SMSF Account

ATO-registered self-managed super funds (SMSF) with either a company, individual or trust structure can open a SMSF Account with Heritage Bank. There are no monthly account-keeping fees and interest rates are the same as those offered for an Online Saver account at 0.4% p.a.