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NAB Term Deposits

Name: NAB Term Deposits
Creator: Savvy
Published: 2022-09-20T16:31:41+09:30

Explore NAB term deposit offers and interest rates to help you compare your options with Savvy.

Written by , updated on September 11th, 2023

The National Australia Bank (NAB) was founded more than 40 years ago following the merger of the National Bank of Australasia and the Commercial Banking Company of Sydney. It has since grown to become one of Australia’s big four banks.

It has continued to expand and now has more than 32,000 employees, eight million customers and 900 branches across Australia and New Zealand. It offers a wide range of banking services ranging from home loans to car loans, insurance, investing, superannuation and term deposits.

Discover if NAB is the right choice for your term deposit by comparing interest rates and terms here with Savvy. See how NAB compares to other banks before making your important investment decision.

*Please note that Savvy does not represent NAB for its term deposit products.

NAB term deposits explained

What term deposits does NAB offer?

As would be expected from one of Australia’s big four banks, NAB offers a wide variety of term deposits ranging from one month up to five years.

NAB term deposits: common interest rates

Term length	Interest rate
30 days	0.50% p.a.
60 days	0.55% p.a.
90 days	0.80% p.a.
4 months	0.80% p.a.
6 months	1.25% p.a.
9 months	1.60% p.a.
12 months	3.25% p.a.
24 to 60 months	2.50% p.a.

(Effective 20 September 2022)

The above interest rates are representative of term deposits with interest paid at maturity (for deposits up to 12 months) or annual interest (for deposits over 12 months). You can choose to receive your interest either monthly, quarterly, half-yearly or annually on deposits of 12 months or more, with no difference in interest rate.

Minimum deposit amounts

The minimum term deposit possible with NAB is $5,000, while the maximum with these interest rates is $2 million. Larger deposits are available by personal negotiation and will come with their own rates.

Notice required for early withdrawal

If you want to withdraw your term deposit funds early, you’ll need to give 31 days’ notice of your intent. This will also result in a reduction in the interest you receive, which is on a percentage basis according to how early you withdraw your funds (compared to the expected maturation date). NAB calls this interest reduction a ‘prepayment cost.’

Farm Management Term Deposits

For eligible primary producers, NAB also offers Farm Management Deposits, which are a great way to distribute farming income across good and bad harvest years. The ATO will allow eligible farmers to deposit farming profits in good years and not pay income tax on those profits. In leaner years when income is reduced, those funds can be withdrawn and income tax paid at that time. In this way, farmers can avoid paying maximum income tax in successful growing years.

How do I open a NAB term deposit?

Existing customers can open a term deposit online or via the NAB mobile app. All you’ll need is your existing online banking details. If you aren’t already a NAB customer, you’ll still be able to open a term deposit online, but will have to go through a few additional steps to provide proof of your ID before arranging your term deposit. The process should take less than ten minutes.

What are the requirements for opening a NAB term deposit?

The requirements for opening a NAB term deposit are:

You’ll need to be aged at least 14 years old
You’ll need to be an Australian resident for tax purposes
If you aren’t an existing NAB client, you can only apply for a term deposit of up to one year
You’ll need to provide one of the following forms of ID: passport, driver’s licence, Medicare card

The pros and cons of NAB term deposits

PROS

Wide range of terms on offer

If you are an existing NAB customer there’s a wide range of term deposits on offer, ranging from short term deposits of one month up to five years.

Farm Management Deposits available

Farmers and primary producers are able to take advantage of the tax benefits offered by Farm Management Deposits provided by NAB.

Term deposits available for children

As long as you are aged at least 14, you’ll be able to open a term deposit with NAB, which is in contrast to some other banks which don’t offer term deposits for kids.

CONS

Limited terms for new customers

New customers are only able to open a term deposit for up to 12 months, so if you’re wanting to invest your funds for a longer period, you may have to look elsewhere.

Less competitive interest rates

The interest rates offered by NAB are less competitive than many financial institutions, particularly for terms beyond 12 months.

31 days’ notice required for withdrawal

If you do need to withdraw your term deposit funds early due to financial hardship, 31 days’ notice is required for your early withdrawal.

More of your frequently asked questions about term deposits

What is a term deposit?

Although many people are familiar with the phrase ‘term deposit,’ not everyone knows what a term deposit is. A term deposit is an agreement between you and your bank or financial institution to lock away a set amount of money for a set period (known as the ‘term’ of the deposit) in return for a fixed rate of interest. As the interest rate and length of the deposit are fixed, you’ll be able to calculate in advance how much money your savings will earn during the life of the term deposit. When your chosen term is over, you can choose to either withdraw your funds and the interest earned or roll them over into another term deposit.

What are the advantages of a term deposit?

The advantages of a term deposit are that you’ll have certainty. You’ll be certain exactly how much interest your savings will earn over a pre-defined period, as the interest rate paid on a term deposit is fixed for the duration of the term. As your savings are locked away for that term, the temptation to dip into your savings is taken away. You can be certain that your savings will be intact at the end of your term, and know exactly how much interest they have earned.

How do I find the best high-interest term deposit?

To find the best high-interest term deposit, it’s necessary to compare the term deposits offered by a wide variety of financial institutions. Luckily, Savvy takes the hard work out of comparing and finding the best high-interest term deposit. We offer clear and accurate comparison information so you can see at a glance which institutions offer the highest rates and best deals available in Australia for your savings.

How can I work out how much interest I’ll earn on my term deposit?

You can use Savvy’s term deposit calculator to help you work out exactly how much interest your savings will earn over a set period. Just enter in the amount you wish to deposit, the term of the deposit and the interest rate offered, and the calculator will show you how much interest your savings will earn.