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Rabobank Term Deposits

Name: Rabobank Term Deposits
Creator: Savvy
Published: 2022-09-01T15:16:37+09:30

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

Written by , updated on September 11th, 2023

Rabobank is one of the world’s largest agricultural banks, with its headquarters in the Netherlands. Although it offers bricks and mortar banking services in Europe, the bank only offers online banking services in Australia and New Zealand.

Aimed at farmers and the agricultural sector, Rabobank offers a range of innovative savings products including term deposits, as well as offering farm and farming equipment loans.

Find out if Rabobank term deposits are right for you by comparing their interest rates and other features here with Savvy. Considering your options with Savvy will help you find a term deposit with the highest interest rate and most convenient terms so you can grow your savings faster.

Rabobank term deposits explained

What term deposits does Rabobank offer?

Rabobank offers a reasonable selection of term deposits ranging from one month up to five years. Their interest is usually paid at maturity, with monthly or more frequent interest payments not offered for deposits under a year.

However, for deposit terms of one year or more, more frequent interest payments are possible, although 0.01% p.a. can be deducted from the advertised interest rate if you want monthly, quarterly or half-yearly interest payments rather than annual or maturity payments. The below rates represent interest being paid either at maturity or annually (except 18-month terms, which can only be paid monthly, quarterly or half-yearly) for deposits of between $1,000 and $2 million.

Rabobank: common term deposit interest rates

Term length	Interest rate
1 month	0.50% p.a.
3 months	2.00% p.a.
6 months	2.85% p.a.
9 months	3.00% p.a.
12 months	3.65% p.a.
18 months	3.80% p.a.
2 to 3 years	3.90% p.a.
4 to 5 years	4.20% p.a.

(Effective 4 October 2022)

Automatic roll-over

If you opt to re-invest your savings at least one day before the end of your term, you automatically receive a 0.10% loyalty bonus on top of the advertised interest rate.

Multiple deposits permitted

Rabobank allows you to open as many term deposits as you choose up to a maximum of $2 million per single deposit. This allows farmers and investors to have term deposits maturing at different times, adding a layer of flexibility to a savings policy.

Farm Management Deposits

Rabobank is one of only a handful of Australian banks that offer Farm Management Deposits to their clients. These deposits are for primary producers only and are designed to assist with the wildly varying income which farms can produce from season to season. They help by allowing farmers to stash their profits away (up to $800,000 in total) in Farm Management Deposits during a good year and not having to pay income tax on them in that financial year. Income tax is only payable when those funds are withdrawn again to assist during harder years when farm income is reduced.

SMSF and business term deposit rates

Term deposits are available for SMSFs and business accounts, with the terms and interest rates on offer the same as those offered for personal customers.

How do I open a Rabobank term deposit?

All Rabobank term deposits will need to be opened either online or through the bank’s mobile app, as it doesn’t have bricks and mortar branches in Australia.

If you aren’t an existing Rabobank customer, you’ll have to show 100 points of ID to open a term deposit. This must include at least one form of photo ID. You will automatically have a savings account opened and linked during this process in addition to your term deposit. Acceptable documents to prove your ID include:

Driver’s licence
Passport
Citizenship certificate
Medicare card
Birth certificate

What are the requirements for opening a Rabobank term deposit?

The requirements for opening a term deposit with Rabobank are as follows:

You’ll need access to either the bank’s website or its mobile app on your phone to open a term deposit
You'll need to be at least 18 years of age
You'll need to be an Australian citizen or permanent resident
You’ll need to provide your name, address, contact details and phone number to open a deposit
In addition, for a Farm Management Deposit, you’ll have to fulfil a set of criteria from the Australian Taxation Office to prove you’re a primary producer

The pros and cons of Rabobank term deposits

PROS

Minimum deposit of $1,000

The minimum amount for a term deposit is $1,000, which is far lower than the $5,000 minimum many others banks specify. This enables those with smaller savings to take out a term deposit and grow their nest-egg faster.

High interest rates

When comparing other term deposits offered by online banks, Rabobank’s rates are amongst the highest in Australia.

Multiple deposits permitted

There are no restrictions on the number of term deposits permitted, so you could opt to have multiple deposits maturing at different times to maximise interest earned and spread your investment risk.

CONS

No monthly interest payment option

Rabobank does not permit monthly or quarterly payments for term deposits of less than one year, meaning interest will be paid either at maturity or annually.

No branches to visit

If you’re the sort of person who likes to open a new bank account or deposit funds in person, Rabobank may not be the best choice for you, as they’re an online-only bank.

Early withdrawal fees

If you request an early withdrawal from your term deposit, an early withdrawal fee will be charged in the form of an interest reduction, which will depend on how much of your original term remains.