Frequently Asked Questions

What fees do I pay to use TermDeposit.com.au?

How does TermDeposit.com.au get paid?

What confirmation of my investment will I receive?

When must my funds be transferred to assure I get today’s rate?

Who can I contact if I have problems with this process?

What is an ADI?

Who should invest in term deposits?

Are term deposits a secure investment?

Are all offerings on TermDeposit.com.au term deposits?

Are all offerings on TermDeposit.com.au issued by ADI's?

Why use a Personalised Service?

What is the minimum amount I can invest?

How long can I invest for?

Are my funds handled by FIIG?

What is a credit union?

What is a credit rating?

How is the interest calculated?

Can I get my money back before maturity?

Why do I need to complete Anti Money Laundering (AML) forms?

Is my term deposit transferable?

What is The Wire?

There are no fees payable for Direct Service or for Personalised Service.

TermDeposit.com.au is paid by the institutions for which it raises funds. Please see the Financial Services Guide link below.

You will receive confirmation of your investment from the institution you have selected when they have received the funds and documentation. The Personalised Service option provides investors with a confirmation from TermDeposit.com.au as well.

In order to lock in the rate you see on TermDeposit.com.au, your funds must be deposited by the cut-off time specified in the application process (Step 3). This is usually 4pm, but can vary by institution. Certain institutions have varying cut-off times on Fridays and before public holidays as well, so please make note of these times in Step 3 of the application process.

If you have any problems or require assistance with this process, please phone us on 1300-DEPOSIT (1300 337 6748) or contact us by email at ask@termdeposit.com.au

Authorised Deposit-taking Institutions (ADIs) are corporations which are authorised by the Australian Prudential Regulation Authority (APRA) under the Banking Act 1959. ADIs include banks, building societies, and credit unions. All ADIs are subject to the same Prudential Standards.

A wide variety of investors, ranging from large corporations and government entities to individuals, are in a position to take advantage of term deposits as an investment option.

On Sunday, 12 October 2008, the Australian Government moved to guarantee all Australian banks, building societies, credit unions and foreign owned subsidiary deposits. Effectively all now come with an Australian Government AAA rated guarantee. The only deposits we offer that don't come with a guarantee are from RACWA. TIO is an investment with Territory Insurance Office, guaranteed by the Northern Territory Government. All three are higher risk as they are not guaranteed by the Australian Government. The Australian Government guarantee is for three years and will be reviewed and possibly expire on 12 October 2011.

The vast majority are term deposits. RAQWA issue debentures, not term deposits.

The vast majority are ADI's. RACWA is not an ADI, but has a short-term rating of A-3 by Standard and Poor's. TIO is not an ADI but is regulated by the Northern Territory Government who also acts as guarantor to any deposit holders.

The Personalised Service option provides investors with many benefits. Investors who register will be kept informed of new issues, market developments, and portfolio management issues (for example when investments are nearing maturity). They will also be able to view their current and historical investments online, receive newsletter updates and obtain general financial product advice from their advisor.

The minimum investment is established by the issuing institution. Please refer to the quoted rate for the minimum investment requirement.

Most term deposit investors prefer maturity dates out to one year, however many financial institutions can accept deposits for longer periods. Investors can consider longer-dated term deposits with regular cash flows if they do not require access to their capital for longer periods. Investors with a longer time horizon should look at the opportunities available in the fixed income markets where assets can be sold if required. Breaking a long-dated term deposit can incur considerable costs in some circumstances. Be sure to ask your advisor about these issues.

No, your funds are transmitted directly by you to the institution you choose to invest with. FIIG Securities Limited acts as an introducer to the institution you have selected to invest with. Funds go directly to the institution selected and are returned directly to the investor upon maturity or as requested.

Credit unions have different corporate structures to banks. A credit union is a cooperative financial institution that is owned and controlled by its members. Some credit unions differ from other financial institutions in that their focus is on member/customer satisfaction rather than pure profitability. This is referred to within the industry as the mutuality dividend.

Credit unions were formed by groups of individuals sharing a common bond of association - typically by community or employment and traditionally are focused on providing a service to the retail market. Approximately two thirds of all credit unions are either locally or industry-based. Any person or body corporate that falls within the ambit of the bond of association can become a member, but usually only members can be customers. Recent times have seen the bond of association requirements loosened significantly so that in most cases anyone can become a member of a credit union.

A credit rating is an independent assessment of an institution's ability to meet its obligations. There are many providers of this service; however, the globally recognised credit rating agencies are Standard and Poor's, Moody's, and Fitch. Generally speaking the rating agencies review an institution's credit rating with reference to their short-term obligations and separately with reference to their long-term obligations. Not all term deposit product providers are rated by these agencies. Please contact one of our advisors to obtain more information about these institutions and their ratings methodologies.

Interest is calculated using the simple interest formula: principal * (rate / 100) * (days / 365)

So $100,000 invested for 90 days @ a rate of 6.50% would earn: $100,000 * (6.50 / 100) * (90 / 365) = $1,602.74

In most cases funds can be returned to investors prior to the maturity date of the term deposit, however there may be some exit fees payable and/or penalties may apply if market interest rates have changed dramatically. Product providers will have their own requirements in relation to early repayment and these will be disclosed in the Product Disclosure Statement.

Completion of Anti Money Laundering forms is a legal requirement for any investment. If an investor is not properly identified an investment cannot be accepted.

Term deposits are not transferable. Investors who need access to funds should consider shorter-dated term deposits, a 24-hour call facility or short-term transferable securities issued by the same institution. We would recommend applying for Personalised Service in order to discuss these options with an advisor.

The Wire (Weekly Interest Rate Express), FIIG's weekly newsletter, contains information about the latest trends, specials and products in the Australian interest rate markets. This newsletter is distibuted weekly to over 3000 market participants