Common Misconceptions
You must have a FMD with your primary financial institution.
False - you can have your FMD with any authorised deposit taking financial
institution that offers a FMD.Elders Rural Bank offers competitively priced Farm Management Deposits with a variable or fixed rate option.
Once invested as a FMD with a financial institution a FMD cannot be transferred to another financial institution without losing taxation benefits.
False - provided the deposit is transferred electronically direct from one FMD account to another a FMD can be transferred and benefits retained.
Elders Rural Bank can make it easy for you by arranging for the funds to be transferred from your current financial institution. Download a copy of our Farm Management Deposit Transfer form by clicking here.
Interest has to be credited to an account held with the financial institution where my FMD is held.
False - interest earned on a FMD cannot be compounded to your FMD it can be credited to an account. It can be with the financial institution your FMD is held with or another financial institution.
Elders Rural Bank (ERB) can credit your FMD interest to an account held with ERB or an account held at another financial institution.
FMDs have variable interest rates and can provide unreliable returns.
False - interest rates for FMDs can be variable or fixed.
Elders Rural Bank offers two options when it comes to selecting a FMD: either a variable interest rate or a choice of 3, 6, 12 or 24 months fixed interest rate options.
You can only have one FMD account limiting the choice with interest rates.
False - while all your FMD accounts must be with one financial institution you can have more than one FMD account provided the total balance of your accounts does not exceed $400,000.
With Elders Rural Bank you can take advantage of variable rate FMD enjoying the flexibility of a variable interest rate, plus the ability to add or withdraw funds and have a portion of your FMD at a fixed rate so your return is guaranteed.
