How the Term Deposit option works
Each term deposit you hold must be a minimum of $5,000 and a maximum of $5 million. In addition, you must have:
- a minimum account balance of $15,000 (excluding any amounts already in the Term Deposit option), and
- the greater of $10,000 or 10% of your account balance invested in options other than Term Deposit. This is because the following deductions (as applicable) cannot be withdrawn from funds in the Term Deposit option:
- administration fees,
- insurance premiums
- pension payments.
When the term deposit matures, all money within the term deposit is transferred into the Cash option. Note that this is after any tax payable on the interest earned2 is deducted. You may then transfer the proceeds to the investment option(s) of your choice. You can do this by changing your investment options or applying for another term deposit.
We may allow a term deposit to be terminated early. This happens under special circumstances and at trustee discretion. If this occurs, there will be an interest adjustment. This will be in the form of a reduction in accrued interest.
Refer to the relevant PDS or Handbook for more information:
2 Applicable to Future Saver and Retirement Transition accounts.