A Farm Management Deposit scheme is an effective risk management tool that allows primary producers to set aside and earn interest on pre-tax income from profitable years and use it when needed most. This is especially important for rural producers with uneven income streams. Rural Bank offers a choice of a variable or fixed rate FMD account, or a combination of both, so that you can tailor your deposit depending on your individual requirements.
- An FMD is a tax effective risk management tool for primary producers.
- It allows primary producers to use income from profitable years in other years when it is needed more.
- Rural Bank offers very competitive fixed and variable FMD rates.
- No monthly account service fees or transaction fees apply to Rural Bank Farm Management Deposit accounts.
FMD eligibility criteria and additional conditions
- Available to primary producers with a taxable non-primary production income of no more than $65,000 for the financial year.
- Must be held for at least 12 months to be eligible for taxation benefits.
- Must be held in the name of an individual. Deposits cannot be made by two or more people jointly, or made on behalf of two or more people.
- Companies, trusts and partnerships are not eligible. However, they are available to certain beneficiaries of trusts and individual partners of a partnership.
- The combined value of your FMD accounts cannot exceed $400,000.
- To maintain potential taxation benefits when switching FMD providers, FMD funds must be electronically transferred to Rural Bank.
- Interest must be credited to another account (held in the account holder’s name) with either Rural Bank or another financial institution.
For further information on FMD eligibility criteria and conditions refer to the Australian Government Department of Agriculture, Fisheries and Forestry (www.daff.gov.au) and also the Australian Taxation Office (www.ato.gov.au).
Deposits with Rural Bank are covered by the Financial Claims Scheme. The account holder may be entitled to payment under the Financial Claims Scheme. Payments under the Scheme are subject to a limit for each depositor. Information about the Financial Claims Scheme can be obtained from the APRA website at http://www.apra.gov.au and the APRA hotline on 1300 55 88 49.
Downloads (PDF): Brochure | Transfer Form
Individual circumstances may vary and specialist legislative requirements must be adhered to. You should consult your taxation advisor. Interest rates quoted are subject to change without notice. This information has been prepared without taking into account your personal circumstances, objectives, financial situation or needs. Terms, conditions, fees and charges may apply. Full details are available on application, by phoning our Customer Service Centre on 1300 660 115, online or by visiting your local branch. All information is subject to change. Products are issued by Rural Bank Limited.
