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Savings and investments

See also - Savings and Investments options in Banking for everyone.

Farm Management Deposits

Primary producers’ income streams aren’t easy to control – seasons and market prices are always changing.

With our fixed rate and variable rate Farm Management Deposit (FMD), you can set aside pre-tax income from your profitable years and earn interest on it – so you can have it available when you most need it.

Alternatively, you may be eligible for an FMD offset Account which can assist to reduce your primary production business costs on eligible Rural Bank Term Loans. For more information on our FMD Offset Account contact your local Rural Bank Relationship Manager.

Our Farm Management Deposit is designed for primary producers who’ve earned a taxable non-farm income of $100,000 or less over a financial year.

You can have more than one Farm Management Deposit, up to a combined value of $800,000 per farmer.

  • It allows primary producers to use income from profitable years in other years when it is needed more.
  • Earn a competitive variable or fixed rate of interest, or a combination of both.
  • No monthly account service fees or transaction fees apply to Rural Bank Farm Management Deposit accounts.
  • Choice of a self managed Rural Bank ONE (online) or Staff Assisted (in branch/phone) Farm Management Deposit.

FMD eligibility criteria and additional conditions 

For further information on FMD eligibility criteria and conditions refer to the Australian Government Department of Agriculture and Water Resources (www.agriculture.gov.au/ag-farm-food/drought/assistance/fmd) and also the Australian Taxation Office (www.ato.gov.au).

  • Available to primary producers with a taxable non-primary production income of no more than $100,000 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 $800,000.
  • 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.

Compare fixed versus variable interest FMD

Term

Variable Rate

At call Deposits must be held for a minimum of 12 months to receive taxation benefits.

Fixed Rate

3, 6, 12 or 24 months

Minimum and maximum balance

Variable Rate

Min: $1,000 / Max: $800,000^

Fixed Rate

Min: $5,000 / Max: $800,000^

Interest frequency payable (calculated daily on closing balance)

Variable Rate

Payable annually on 1st July.

Fixed Rate
  • for 3 and 6 month terms, payable at maturity
  • for 12 and 24 month terms nominate interest frequency payable:
    • Monthly – 1st of the month
    • Quarterly – on open date
    • Annually – on open date

^An individual can own more than one Farm Management Deposit, and can own Farm Management Deposits with different FMD providers, but the sum of the balances of all the Farm Management Deposits of an owner must not be more than $800,000.

Compare Rural Bank ONE (online) versus Staff Assisted (in branch/phone) FMD

  Self Managed (online) Rural Bank ONE FMD Staff Assisted FMD
Allows staff assisted transactions No. Yes.
Easy online application (paperless) Yes, for applicants who satisfy the requirements for online identity verification. Or alternatively print the online FMD application and post your documents. No, complete your paper based application and either drop it into your nearest branch or post it to us.
Opening Deposit options >  Direct debit from another account (fixed rate FMD only) this becomes the nominated account for interest payments.
>  Post a cheque to Rural Bank payable to the account holder/s or Rural Bank.
>  Transfer funds from another account.
>  Take your cheque into your nearest branch.
>  Post a cheque to Rural Bank payable to the account holder/s or Rural Bank.
>  Transfer funds from another account.
Must register for Rural Bank Internet Banking Yes. No.
How you can maintain or transact on your account We will not maintain or transact on your account before receiving a secure email via Rural Bank Internet Banking from you. You can maintain or transact on your account by person, phone and by secure email via Rural Bank Internet Banking.
Want to know more Visit the Rural Bank ONE website.

Contact us on 1300 660 115 or email us.

How do I apply / find out more?

Related documents

Farm Management Deposit interest rates (online)

Online Short Term Fixed Rate FMD (Rural Bank ONE) - Interest paid at maturity

 

3 months
6 months

$5,000 to $49,999

3 months - 2.20%
6 months - 2.35%

$50,000 to $399,999

3 months - 2.20%
6 months - 2.35%

$400,000 to $800,000

3 months - 2.20%
6 months - 2.35%

Online Fixed Rate FMD (Rural Bank ONE) - Interest paid yearly

 

12 months
24 months

$5,000 to $49,999

12 months - 2.50%
24 months - 2.65%

$50,000 to $399,999

12 months - 2.50%
24 months - 2.65%

$400,000 to $800,000

12 months - 2.50%
24 months - 2.65%

Online Fixed Rate FMD (Rural Bank ONE) - Interest paid quarterly

 

12 months
24 months

$5,000 to $49,999

12 months - 2.35%
24 months - 2.50%

$50,000 to $399,999

12 months - 2.35%
24 months - 2.50%

$400,000 to $800,000

12 months - 2.35%
24 months - 2.50%

Online Fixed Rate FMD (Rural Bank ONE) - Interest paid monthly

 

12 months
24 months

$5,000 to $49,999

12 months - 2.30%
24 months - 2.45%

$50,000 to $399,999

12 months - 2.30%
24 months - 2.45%

$400,000 to $800,000

12 months - 2.30%
24 months - 2.45%

Interest rates quoted on a per annum basis and subject to change without notice. Interest is calculated daily and paid or credited as specified. Minimum deposit $5,000. Maximum aggregate balance is $800,000 for all FMDs. No additional deposits will be accepted on the Fixed Rate FMD product. Other eligibility criteria apply.

Online Variable Rate FMD (Rural Bank ONE) - Interest paid yearly

$1,000 to $49,999

0.75%

$50,000 to $399,999

1.25%

$400,000 to $800,000

1.25%

Interest rates quoted on a per annum basis and subject to change without notice. Interest is calculated daily and paid or credited as specified. Minimum deposit $1,000. Maximum aggregate balance is $800,000 for all FMDs. No additional deposits will be accepted on the Fixed Rate FMD product. Other eligibility criteria apply.

Farm Management Deposit interest rates (in branch/phone)

Fixed rate FMD - Interest at maturity

$5,000 to $49,999

3 months - 2.20%
6 months - 2.35%

$50,000 to $399,999

3 months - 2.20%
6 months - 2.35%

$400,000 to $800,000

3 months - 2.20%
6 months - 2.35%

Fixed rate FMD - Interest paid yearly

$5,000 to $49,999

12 months - 2.50%
24 months - 2.65%

$50,000 to $399,999

12 months - 2.50%
24 months - 2.65%

$400,000 to $800,000

12 months - 2.50%
24 months - 2.65%

Fixed Rate FMD - Interest paid quarterly

$5,000 to $49,999

12 months - 2.35%
24 months - 2.50%

$50,000 to $399,999

12 months - 2.35%
24 months - 2.50%

$400,000 to $800,000

12 months - 2.35%
24 months - 2.50%

Fixed Rate FMD - Interest paid monthly

$5,000 to $49,999

12 months - 2.30%
24 months - 2.45%

$50,000 to $399,999

12 months - 2.30%
24 months - 2.45%

$400,000 to $800,000

12 months - 2.30%
24 months - 2.45%

Interest rates quoted on a per annum basis and subject to change without notice. Interest is calculated daily and paid or credited as specified. Minimum deposit $5,000. Maximum aggregate balance is $800,000 for all FMDs. No additional deposits will be accepted on the Fixed Rate FMD product. Other eligibility criteria apply.

Variable Rate FMD - Interest paid yearly

$1,000 to $49,999

0.75%

$50,000 to $399,999

1.25%

$400,000 to $800,000

1.25%

Interest rates quoted on a per annum basis and subject to change without notice. Interest is calculated daily and paid and credited as specified. Minimum deposit $1,000. Maximum aggregate balance is $800,000 for all FMDs. Other eligibility criteria apply.

FMD Offset Account – Discounted Offset Rate

 

The following interest rate is used to calculate the discounted interest on eligible Term Loan accounts that are linked to a Rural Bank FMD Offset Account. For more information refer to clause 22.4 of the Rural Bank Banking Accounts Terms and Conditions.

Offset Type

Full Offset*

Interest Rate

0.00%

*The term loan being offset must have a variable rate and the purpose for which must relate wholly to a primary production business carried on by the FMD owner either directly as a sole trader or through a partnership.

Financial Claims Scheme

Deposits with Rural Bank are covered by the Financial Claims Scheme.

The following has been provided to inform you on the Financial Claims Scheme.

1. What is the Financial Claims Scheme?

The Financial Claims Scheme (FCS) is an Australian Government scheme that provides protection and quick access to deposits in banks, building societies and credit unions in the unlikely event that one of these financial institutions fails. Under the FCS, certain deposits are protected up to a limit of $250,000 for each account holder at any bank, building society, credit union or other authorised deposit-taking institution (ADI) that is incorporated in Australia and authorised by the Australian Prudential Regulation Authority (APRA).

The FCS can only come into effect if it is activated by the Australian Government when an institution fails. Once activated, the FCS will be administered by the Australian Prudential Regulation Authority (APRA). In an FCS scenario, APRA would aim to pay the majority of customers their protected deposits under the Scheme within seven calendar days.

2. How is the FCS limit applied?

The FCS limit of $250,000 applies to the sum of an account holder's deposits under the one banking license. Therefore, all deposits held by an account holder with a single banking institution must be added together towards the $250,000 FCS limit, and this includes accounts with any other banking businesses that the licenced banking institution may operate under a different trading name.

Rural Bank Limited also distributes the Farm Management Deposit product through the Rural Finance brand and this is also covered by the FCS. Both Rural Bank Limited and Rural Finance Farm Management Deposits will be considered under the $250,000 limit when in the same name.

3. Where can I get further information on the FCS?

Further information on the FCS is available on the FCS website - www.fcs.gov.au.

Fees and charges

For all Rural Bank fees and charges, download the Schedule of fees and charges document.


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.

1For FMD Offset Accounts, special legislative requirements must be adhered to and Rural Bank eligibility criteria applies. Before applying for a Rural Bank FMD Offset Account you should consult your taxation adviser to ensure you meet legislative requirements, understand your obligation to comply and the applicable penalties for non-compliance and wider taxation implications and read the Banking Accounts Terms and Conditions. Fees and Charges apply as outlined in our Schedule of Fees and Charges.