Macquarie Term Deposit Account Terms and Conditions

These Terms and Conditions apply to the Macquarie Term Deposit. This product differs from the Macquarie Digital Term Deposit – if you hold a Macquarie Digital Term Deposit, please instead refer to the Macquarie Digital Term Deposit Account Terms and Conditions.

These Terms and Conditions must be read together with the Macquarie Banking Terms and Conditions.

1.1 Interest rates

Information about available interest rates is on our website, in Digital Banking, or through your Financial Services Professional or Relationship Manager (if applicable). These rates are subject to change and the interest rate that you will receive may vary depending on when your application to open a Term Deposit (or your Term Deposit Rollover) is processed.

You will be advised of the interest rate applicable to your Term Deposit after account opening or after your Term Deposit is Rolled Over. The current interest rate applicable to your Term Deposit is set out within:

• Digital Banking; or
• the Confirmation or any subsequent notice we have given you regarding your interest rate.

A fixed interest rate will apply to your Term Deposit and will depend on your chosen Investment Amount, Investment Term and Interest Frequency. The Investment Term will commence, and interest will be earned, from the time that cleared funds are credited to your Term Deposit (or reinvested into your renewed Term Deposit).

If your Term Deposit is being Rolled Over, the interest rate on your renewed Term Deposit may be higher or lower than the rate that applied to your previous Term Deposit. If your Term Deposit has rolled over and you subsequently provide Grace Instructions to us (for example, to change the Investment Term), then the interest rate that applies to your renewed Term Deposit will be the corresponding rate that was on offer as at your previous Term Deposit’s Maturity Date (unless otherwise agreed with you).

We may apply a different interest rate where we determine, acting reasonably, that your use of the Term Deposit is not in good faith or involves gaming or otherwise taking excessive advantage of our account offering in a manner we consider is inconsistent with the intent of our account offering. For example, if you open multiple Term Deposits with similar Investment Terms within a short period, this may indicate circumvention of account limits to take advantage of more favourable interest rates and we may apply the lower rate across the total balance of your Term Deposits.

1.2 Interest calculation and crediting

If interest is payable on your Term Deposit, it is calculated daily using the following formula:

[Daily Closing Balance x interest rate applicable to your Term Deposit / 365]

Where:

the Daily Closing Balance is the balance of your Term Deposit at the end of a day. It includes cleared and uncleared funds that have been deposited to your Term Deposit within that day, but it excludes:

• funds sent over the NPP on days which are not Business Days. These funds may appear in your transaction list immediately but will not be included in your Daily Closing Balance or your statement until the next Business Day; and
• any interest amounts credited.

Interest accrues up to and including the day before interest is credited or paid to you. Interest is credited to your Term Deposit or another bank account nominated by you according to your selected Interest Frequency. That amount will be credited on the last day of that Interest Frequency period or, if that day is not a Business Day, the next Business Day. If we credit interest to your Term Deposit, you will not be entitled to withdraw that interest until the Maturity Date or the day your Term Deposit is closed.

If you close your Term Deposit, we will pay you any interest accrued up to the day before your Term Deposit is closed (excluding any interest that has already been credited to another bank account nominated by you).

1.3 Fees and charges

If you close your Term Deposit before the Maturity Date, we may apply a break fee. 

The break fee equals 25% of interest accrued on your Term Deposit as at the date of closure and will be deducted from the total interest payable to you. Where the amount of the break fee exceeds the amount of interest payable on your Term Deposit, we may recover the break fee by deducting the amount from the principal balance of your Term Deposit.

If we incur any government tax, duty or other charge imposed by law in respect of your Term Deposit or its operation, you must pay us an amount equal to the charge. You authorise us to debit any such amount from your Term Deposit.

2.1 Statements

Term Deposit statements are made available half-yearly (in January and July each year, if you hold an open Term Deposit at the time) through Digital Banking.

You should:

• check the entries on your statement; and
• promptly inform us of any error or unauthorised transaction.

2.2 Lodgement times

Any requests and instructions provided in relation to your Term Deposit are subject to lodgement times available on our website. Any requests and instructions received after these times may be accepted at our discretion and we reserve the right to refuse these.

2.3 Fixed Investment Amount

You must make an initial deposit at account opening to fund your Term Deposit. We may close your Term Deposit if we do not receive your initial deposit and your Term Deposit is not funded within a reasonable period after account opening.

Once your Term Deposit has been opened, you can’t change your Investment Amount during your Investment Term.

3.1 Authority types

You may request that a person or persons be appointed as an Authorised User to operate or access your Term Deposit on your behalf. We may, acting reasonably:

• refuse your request;
• impose conditions on an Authorised User’s authority at any time; or
• suspend or cancel the authority of an Authorised User at any time.

Any Authorised User is appointed as your agent and their actions are binding on you and could cause you to be in breach of these Terms and Conditions or the Macquarie Banking Terms and Conditions.

Consider carefully who you appoint as an Authorised User on your Term Deposit and what level of authority you give them, as we will follow their instructions as if they were yours.

We are not required to make any enquiries in relation to any instructions received from an Authorised User.

You may revoke the authority of an Authorised User at any time by contacting us.

The types of authority that you can grant to an Authorised User are set out below:

For Approve and Authorised Signatory authority types on Business Banking Term Deposits, you can choose between ‘Sole Authorisation’, where a single person can perform the above actions, or ‘Dual Authorisation’, where the person can only do so jointly with another person.

Where you give authority to a Financial Services Company (FSC):

• the FSC will give us details of people who can transact on its behalf;
• the people the FSC nominates can access your Term Deposit according to the authority you have given to the FSC until we have been advised by the FSC that the nominated person no longer has authority; and  
• if you change Financial Services Professional or FSC or cease using them, you must contact us promptly to cancel their authority. Otherwise, they may still be able to access and operate your Term Deposit.

3.2 Company accounts

An Office Holder may, acting alone, give any instructions or take any action, including to open or close a Term Deposit or share data in relation to it, unless:

• otherwise agreed by you and us;
• required by law; or
• we have become aware of a dispute which involves the Term Deposit, in which case we may take such steps which are available to us under section 4 of the Macquarie Banking Terms and Conditions.

4.1 Notice period

If you think you may need to access your funds before the Maturity Date, other deposit products may be more suitable.

To access your funds before the Maturity Date, you must close your Term Deposit by giving us at least 31 days’ notice, except where we agree otherwise on the grounds of hardship. We have the discretion to delay access to your funds until the end of the notice period, but not beyond the Maturity Date.

If you have less than 31 days remaining of your term (or if you have a one-month Investment Term), the earliest you can access your funds is the Maturity Date.

5.1 Maturity Instructions

Before the Maturity Date, you can provide Maturity Instructions to:

• reinvest your Term Deposit for a further Investment Term (or if you hold a Business Banking Term Deposit, partially withdraw funds or deposit additional funds and reinvest the new amount for a further Investment Term);
• if applicable, convert your Term Deposit in accordance with section 6.2; or
• close your Term Deposit.

5.2 Automatic reinvestment

If we do not receive Maturity Instructions from you in accordance with section 5.1, your Term Deposit will be automatically reinvested for the same Investment Term. If the same Investment Term is not available, we will select a similar (but not longer) Investment Term.

5.3 Grace Period

Once your Term Deposit has Rolled Over, you will have a Grace Period to:

• close your Term Deposit and withdraw funds (or if applicable, transfer funds) without incurring an interest adjustment; or
• submit one Grace Instruction to make certain changes to your Term Deposit details without incurring an interest adjustment.

Any subsequent Grace Instructions may be accepted at our discretion, and we reserve the right to refuse these.

6.1 Withdrawal or transfer of funds

On the Maturity Date, we will repay or reinvest your Term Deposit in accordance with your Maturity Instructions.

Upon closure of your Term Deposit, all funds and interest accrued will be returned to your Nominated Account (if applicable) or disbursed in accordance with your instructions, unless section 6.2 applies.

6.2 Business Banking At Call Investment Account (if applicable)

If you hold a Business Banking Term Deposit and provide instructions to convert your Term Deposit to a Business Banking At Call Investment Account:

• upon the Maturity Date, your Term Deposit will become a Business Banking At Call Investment Account and the Macquarie Business Banking Deposit Account Terms and Conditions will apply; 
• you acknowledge that, in some limited circumstances, it may take up to 2 Business Days from the date of conversion to apply your new interest rate; and 
• the interest rate that you will receive on your Business Banking At Call Investment Account may be higher or lower than the previous rate that applied to your Term Deposit.

We may enter commercial arrangements with FSCs to integrate our products with their services. Where you:

• acquire a Term Deposit through a FSC; or
• integrate a Term Deposit with the software of a FSC,

we may make payments to them. Where permitted by law, these payments may be up-front and/or ongoing and may be percentage based.

Such payments are made by us and not you, and do not affect the interest rate, Term Deposit balance, fees or charges which apply to your Term Deposit.

If you apply for a Term Deposit through a wrap, superannuation or managed account platform, your investment may be pooled with the funds of other investors who wish to invest for the same term as you.

As such, some of the features described in these Terms and Conditions may differ or may not be available to you. For example, platforms that offer our Term Deposit on their investment menu may:

• require a different minimum investment amount;
• offer limited investment terms and interest payment options;
• apply the relevant limit under the Financial Claims Scheme (FCS) to the total amount of pooled funds resulting in your FCS entitlement being apportioned accordingly; and
• require a longer notice period to close your Term Deposit and access funds before the end of your agreed term.

You should contact your Financial Services Professional or relevant wrap platform provider to find out more.

Any defined terms used in these Terms and Conditions which are not listed below have the meaning given to them in the Macquarie Banking Terms and Conditions.

Business Banking Term Deposit means a Term Deposit that can be accessed through Macquarie Business Online.

Confirmation means the notice provided to you after you open a new Term Deposit or after your Term Deposit has Rolled Over that confirms the details of your Term Deposit, including the applicable interest rate.

Grace Instruction means, where your Term Deposit has Rolled Over, any instruction that you provide during the Grace Period.

Grace Period means, where the Term Deposit has Rolled Over, the longer period of 7 days or 5 Business Days from the Term Deposit’s previous Maturity Date.

Interest Frequency means how often you choose to receive interest payments on your Term Deposit when you open a Term Deposit or when your Term Deposit is Rolled Over.

Investment Amount means the initial amount deposited by you when you open a Term Deposit or the amount that has been reinvested when your Term Deposit is Rolled Over. 

Investment Term means the period that you choose to invest your funds when you open a Term Deposit or when your Term Deposit is Rolled Over.

Macquarie Business Online means our online business banking platform known as “Macquarie Business Online”. This is an Online Banking platform for the purposes of the Macquarie Banking Terms and Conditions.

Maturity Date means the last day of the Investment Term but, if this day is not a Business Day, it will be the next Business Day. 

Maturity Instructions means any instructions that you provide before the Maturity Date.

Nominated Account means, unless you open a Business Banking Term Deposit, the bank account that you nominate at account opening to fund your Term Deposit and to receive payment of your Investment Amount and any interest accrued when your Term Deposit is closed.

Rolled Over means where your Term Deposit is reinvested into a renewed Term Deposit in accordance with section 5.1 or automatically reinvested in accordance with section 5.2.    

Term Deposit means a Macquarie Term Deposit Account issued by us which provides for a fixed amount to be invested by you at a fixed interest rate for a fixed term, as set out in these Terms and Conditions. This is a deposit account under the Banking Act 1959.

we, us, our or Macquarie means Macquarie Bank Limited ABN 46 008 583 542, AFSL 237502.

you means the holder of a Term Deposit and, in the case of joint holders, each of you.