Fact checked
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.
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.
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.
The requirements for opening a NAB term deposit are:
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.
Farmers and primary producers are able to take advantage of the tax benefits offered by Farm Management Deposits provided by NAB.
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.
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.
The interest rates offered by NAB are less competitive than many financial institutions, particularly for terms beyond 12 months.
If you do need to withdraw your term deposit funds early due to financial hardship, 31 days’ notice is required for your early withdrawal.
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Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.