Product Disclosure Statement
Effective 11 March 2004
including Terms and Conditions
Contents
Part A
General information
Features and benefits
Risks
Significant taxation implications
Labour, environmental, social or ethical standardsHow can I get more information?
What do I do if I have a dispute relating to my account?
Are commissions payable to staff members of NAB?
Updating information
Meaning of words
Part B
Terms and Conditions
NAB Term Deposit
General Matters
Product Disclosure Statement
This document forms part of the Product Disclosure Statement (PDS) for NAB's NAB Term Deposits, along with the following document:
• the flyer 'Indicator Rates –for Selected Term Deposit Products' ;or
• your Online Application Form.
If you have not already received a copy of the applicable document, please contact NAB.
This PDS sets out important information about NAB's NAB Term Deposits. By using this PDS you will be able to understand:
• significant characteristics and features applicable to each product;
• the benefits and risks associated with each product.
Make sure you read this PDS thoroughly before making a decision to acquire a NAB Term Deposit.
Any advice in this PDS has been prepared without taking account of your objectives, financial situation or needs. Before acting on any advice in this PDS, NAB recommends that you consider whether it is appropriate for your circumstances.
Each of NAB's NAB Term Deposits covered by this PDS are issued by National Australia Bank Limited ABN 12 004 044 937. You can contact NAB by visiting nab.com.au or any branch, or calling 13 22 65 .
Part A
General information
Features and benefits
A NAB Term Deposit is a fixed rate, fixed term investment, providing a secure return on funds, for each agreed term.
A NAB Term Deposit offers:
• the choice of a wide range of terms for your investment funds, with a fixed return;
• the flexibility of monthly, quarterly, half-yearly or annual interest payments for certain term deposits; and
• the choice of interest payments by cash or cheque, or directly credited to an account of your choice, or (for deposits of certain terms) compounded.
Risks
There are aspects to holding a NAB Term Deposit that may involve some risks, including those detailed below. Further information on each of these risks is available in Part B of this PDS.
1. Fixed interest rate
For each term of NAB's NAB Term Deposits the interest rate remains fixed for that term (except for the NAB Term Deposit 'trade up' under which you have a limited ability to change to a higher rate). Your interest rate remains fixed for each term even if market rates increase during the term.
2. Reduction of return
If you withdraw an amount early within the first 5 years of a NAB Term Deposit (including if the whole of the deposit is withdrawn or repaid) NAB may reduce the interest generated on the deposit.
Significant taxation implications
Interest earned on a NAB Term Deposit may form part of your assessable income.
If you do not provide your Tax File Number (TFN), Australian Business Number (ABN), or advise that you are eligible for an exemption from providing a TFN or ABN, NAB may be obliged to deduct Pay as You Go Withholding Tax at the maximum marginal tax rate (plus the Medicare levy) from any interest income you earn on your NAB Term Deposit. If you are a non-resident of Australia, NAB may also be obliged to deduct Pay as You Go Withholding Tax.
Additional taxation implications may arise if your NAB Term Deposit is linked to a loan account through National Loan Trimmer (see Part B of this PDS).
NAB recommends that you seek independent tax advice.
Labour, environmental, social or ethical standards
NAB does not take labour, environmental, social or ethical standards into account for the purpose of selecting, retaining or realising any investment relating to NAB's NAB Term Deposits.
How can I get more information?
You can obtain more information about NAB's:
• Term Deposits;
• current interest rates; or
• banking with NAB;
by visiting nab.com.au or any branch, or calling 13 22 65.
What do I do if I have a problem or dispute relating to my account?
For information about resolving problems or disputes, contact NAB on 1800 152 015, or ask at any branch of NAB.
If you subsequently feel that an issue has not been resolved to your satisfaction, you may be able to raise your concerns with the Banking Ombudsman if you are an individual or small business customer covered by the Banking and Financial Services Ombudsman Scheme.
Are commissions payable on these products to staff members of NAB?
Staff members are salaried employees of the National Australia Bank Limited and do not receive any proportion of any fees or commissions paid to NAB in connection with the products detailed in this PDS.
Staff members may be entitled to receive additional monetary or non-monetary benefits and/or rewards resulting from participation in programs conducted by NAB. Monetary benefits or rewards may include an annual bonus the level of which may depend on the overall performance of the National group of companies. Non-monetary benefits or rewards for staff members and their partner may include gift vouchers, film tickets, restaurant meals, attendance at an annual conference or other functions.
Whether staff members receive any such benefits and rewards depend on a number of performance related factors including the level of remuneration generated for NAB from sales of products as a consequence of the staff members advice.
It is not possible to determine at any given time whether a staff member will receive such benefits or rewards or to quantify them. They are generally not directly attributable to any particular product that the staff member has given advice on.
Updating information
Information in Part A of this PDS that is not materially adverse information may change from time to time, and may be out of date at the time this PDS is given to you. Information in Part A of this PDS may be updated by making a notice containing the updated information available through:
• contacting NAB on 13 22 65
• visiting NAB at nab.com.au or
• visiting any branch.
You can find out details of changes to Part A of this PDS through any of these channels. A paper copy of any updated information for such changes may be obtained without charge on request.
After the product is issued you will be notified of any material change to, or significant event affecting, the information in this PDS. Changes to terms and conditions will be notified as set out in Part B of this PDS.
Meaning of words
Words defined in Part B of this PDS have the same meaning in Part A.
Part B
Terms and Conditions
1 NAB Term Deposits
How the deposit will work
1.1 To open a term deposit you must deposit clear funds with NAB for an agreed term. You may extend the term deposit for further terms under clauses 1.17 and 1.19. NAB offers a range of term deposit rates and terms from time to time, and may set maximum and minimum terms and deposit amounts for term deposits. Current rates and terms are available from NAB .
1.2 You may deposit monies on term deposit with NAB by making either a Standard Application or Online Application. If you are required to attend NAB when making this deposit, the agreed term will be specified in the flyer 'Indicator Rates - For Selected Term Deposit Products'. If you deposit monies by making an Online Application the agreed term will be as specified in the Online Term Deposit Confirmation Advice.
1.3 If you deposit monies by making a Standard Application you can do so by attending NAB or by telephoning NAB on 13 22 65 and instructing NAB to transfer monies from an existing NAB account or by providing NAB with a cheque or cash. If you provide NAB with a cheque by post, it must be received by NAB within 3 business days of the Standard Application being received by NAB .
1.4 If you deposit monies by making an Online Application you can do so by instructing NAB to transfer monies from a nominated existing NAB account or by providing NAB with a cheque. If you provide NAB with a cheque by post, it must be received by NAB within 3 business days of the Online Application form being received by NAB .
1.5 If it is a NAB Term Deposit 'trade up' you may elect to 'trade up' ('trade up' Election) to a higher interest rate ('trade up' Interest Rate) once during each term of your term deposit (except during the final week of each term). Your 'trade up' Interest Rate will be the rate offered on NAB's NAB Term Deposit which corresponds to the amount, frequency of payment of interest and the remaining part of the term of your term deposit on the date of your 'trade up" Election, but can be no greater than 3% per annum above the interest rate being earned on your term deposit immediately prior to your 'trade up' Election. On the date of your 'trade up' Election, you may lodge additional funds for the remaining period of your term deposit at the 'trade up' Interest Rate, providing that your total term deposit (including your original term deposit) does not exceed $500,000.
1.6 If the term deposit or interest is due on a day which is not a banking day, NAB will pay or credit it on the next banking day.
1.7 Instructions in respect of term deposits in your name/s (including for a 'trade up' Election) will be governed by the signing authority which you have already provided to NAB or which you will complete when you lodge the deposit and which, amongst other things, specifies who is authorised to provide instructions in respect of term deposits and whether they may do so alone or jointly. Alternatively, you may give NAB such instructions by telephoning NAB on 13 22 65.
Interest
1.8 For NAB Term Deposit NAB will pay interest on the deposit (subject to clause 1.12) calculated on a daily basis on the amount of the term deposit from time to time.
The rate for a term of the deposit will remain the same until the maturity of that term. For the initial term of the deposit, the rate that will apply will be the rate specified in the flyer 'Indicator Rates- For Selected Term Deposit Products' or the 'Online Term Deposit Confirmation Advice' (and that document, as applicable, forms part of these Terms and Conditions). For each subsequent term of the deposit, the rate that will apply will be the rate as varied under clauses 1.17 to 1.19. Current interest rates may be obtained from NAB .
1.9 For NAB Term Deposit 'trade up' NAB will pay interest on the term deposit (subject to clause 1.12) calculated on a daily basis on the amount of the term deposit from time to time.
The rate for a term of the deposit will remain the same until the maturity of that term, unless you elect to 'trade up' to a higher interest rate for a term under clause 1.5. Subject to clause 1.5:
(a) for the initial term of the deposit, the rate that will apply will be the rate specified in the flyer 'Indicator Rates For Selected Term Deposit Products' or the 'Online Term Deposit Confirmation Advice' (and that document, as applicable, forms part of these Terms and Conditions);
(b) for each subsequent term of the deposit, the rate that will apply will be the rate as determined under clause 1.19.
Current interest rates may be obtained from NAB .
1.10 You may ask NAB for the interest to be:
• credited to a nominated bank account;
• paid by some other form agreed by NAB ; or
• added to the deposit at the maturity of each term.
1.11 Interest will be credited or paid as follows:
• for a NAB Term Deposit with a term that is less than a year, NAB will pay the interest at the maturity of that term;
• for a NAB Term Deposit with a term of a year or more, you may choose to have interest paid or credited monthly, quarterly, 6 monthly or annually and at the maturity of each term;
• for a NAB Term Deposit"trade up"of $5000 or more, you may choose to have interest paid or credited monthly or annually;
• for a NAB Term Deposit with a term of 12 months, interest can be compounded monthly.
1.12 If the term deposit is part of National Loan Trimmer or a similar plan, the terms and conditions of the plan from time to time will apply. Further details may be found in clauses 1.21 to 1.25.
Early repayment
1.13 You may withdraw amounts from the deposit at any time.
1.14 If you withdraw an amount from the term deposit prior to the maturity of a term and within the first 5 years starting on the day on which the funds are first deposited, NAB may reduce the interest generated on the term deposit by NAB 's reasonable estimate of the cost to it of meeting the early repayment, up to the amount of accrued interest (any reduction in the interest generated on the term deposit will never exceed the accrued interest).
1.15 NAB will repay early the whole of the term deposit if the withdrawal would reduce the deposit below $1000 for a NAB Term Deposit or $5000 for a NAB Term Deposit 'trade up'.
1.16 If only part of a term deposit is withdrawn, NAB will pay or credit the interest on that part at the next interest payment date or at the maturity of the current term, whichever occurs first.
Maturity
1.17 At the maturity of a term, you may ask NAB for the term deposit to be repaid in cash or by bank cheque or some other form agreed by NAB , to be credited to a nominated NAB account, or to be extended for a further term with or without additional funds. NAB may accept or reject your request on such terms and conditions as it determines. Such acceptance is effective from the date of maturity of the term that has ended.
1.18 If you do not make a request in accordance with clause 1.17 before the maturity of a term, and if your existing term deposit is for less than $1000, or for less than $5000 and the term is less than 30 days, NAB will repay the whole of the term deposit at the maturity of that term in cash or by bank cheque or some other form agreed by NAB , or to be credited to a nominated NAB account.
1.19 If you do not make a request in accordance with clause 1.17 before the maturity of a term then, subject to clause 1.18, at the maturity date NAB will extend the term deposit for a further term of the same length as the term that has ended, at the interest rate applicable at the date of the extension, and otherwise on the same terms and conditions except to the extent determined by NAB . The new maturity date will be the date of the end of the further term.
Bank fees
1.20 NAB will not charge you any bank fees in respect of the term deposit.
National Loan Trimmer
1.21 You may apply to NAB to participate in National Loan Trimmer. NAB may accept or reject your application at its discretion. Full terms and conditions for National Loan Trimmer are available from NAB on request.
1.22 National Loan Trimmer is only available on certain deposit and loan accounts specified by NAB from time to time, details of which can be obtained from NAB . However, at any one time, only up to 10 deposit accounts can be linked to National Loan Trimmer.
1.23 National Loan Trimmer may not link a loan account with a deposit account which includes a name or names other than the name(s) in which the loan account is held.
1.24 While you have National Loan Trimmer the interest payable on your linked loan account will be reduced, but any linked deposit account will not earn any interest even if the credit balance of that account exceeds, or if there is more than one linked deposit account, the total credit balances of those accounts exceed, the unpaid balance of your linked loan account.
1.25 It is your responsibility to monitor the credit balance of the linked deposit account, or if there is more than one linked deposit account, the total credit balances of those accounts, as against the unpaid balance of your linked loan account to achieve the best results for you under National Loan Trimmer.
2 General Matters
Code of Banking Practice
2.1 NAB has adopted the Code of Banking Practice and relevant provisions of the Code apply to these products, if you are an individual or a small business customer (as defined by the Code).
You can obtain from NAB upon request:
(a) information on NAB 's current interest rates and standard fees and charges relating to these products if any;
(b) general descriptive information concerning NAB 's banking services including:
(i) for accounts with cheque access, general descriptive information about cheques;
(ii) account opening procedures;
(iii) NAB 's obligations regarding the confidentiality of your information;
(iv) complaint handling procedures;
(iv) complaint handling procedures;
(v) bank cheques;
(vi) the advisability of you informing NAB promptly when you are in financial difficulty;
(vii) the advisability of you reading the terms and conditions applying to each banking service NAB provides to you;
(c) general descriptive information about:
(i) the identification requirements of the Financial Transactions Reports Act 1988;
(ii) the options available to you under the tax file number legislation; and
(d) a copy of the Code of Banking Practice.
2.2 Statements of account are not provided for the NAB Term Deposit , and you agree that statements need not be provided.
Changes NAB may make
2.3 In addition to the other changes NAB may make to these terms and conditions which are detailed in these terms and conditions, NAB may change any other terms and conditions (including by imposing new fees or charges, changing the amount, type, or method of calculation of fees and charges payable). NAB will make any changes in accordance with any applicable legislation and industry codes.
2.4 If the product is not used for a period, the length of which is dependent upon the amount of money in the account or term deposit, the crediting of interest and issue of statements to you, if applicable, will end and access will be restricted, or the account or term deposit will be closed and the balance transferred to the Commonwealth Government. NAB will notify you at your last known address at least 30 days before any such variation takes effect.
How will I be notified of changes?
2.5 Unless otherwise specified in these terms and conditions or separately agreed between you and NAB , NAB will give you notice of changes as set out below and you agree to receiving notice in such ways:
• notice of changes to fees and charges will be given in writing at least 30 days before the change takes effect;
• notice of changes to government fees and charges will be given by media advertisement, in writing or electronically as soon as practicable after, but no later than 3 months after, the changes take effect; and
• notice of any other changes to these terms and conditions (including changes relating to interest other than changes to an interest rate) will be given in writing at least 30 days before the changes take effect.
Government charges and taxes
2.6 NAB may deduct from the term deposit or interest payable on it any government charges, duties and taxes relating to either the term deposit or interest.
Joint product holders
2.7 Subject to clause 2.11 if there are two or more of you, you will be treated as holding the product jointly and NAB may accept for credit to the product any cheque, payment order or bill of exchange that is not payable to all of you. This means that each term deposit holder has the right to all of the balance of the term deposit, jointly with other holders.
2.8 If any of you die, the product will be treated as the product of the survivor or survivors jointly.
2.9 Unless any of you request otherwise, NAB statements and notices (including notification of any variation to these terms and conditions) will be forwarded to the mailing address of the first of you named in the product. You will all be deemed to have received any NAB statements and notices forwarded in accordance with these terms and conditions.
2.10 A joint term deposit holder may only make a withdrawal on the terms of any authority to operate on the product. If NAB is notified of a dispute between joint holders, NAB may require all joint holders to sign any authority to operate the product.
2.11 Monies deposited in the form of an Online Application can only be invested in your sole name.
Electronic instructions
2.12 Clauses 2.12 to 2.23 will only apply to you if you make an Online Application.
2.13 If you have submitted to NAB an Online Application you warrant that all information provided to NAB in the Online Application is true and correct.
2.14 You agree that an instruction given by you to NAB in your Online Application constitutes a valid and irrevocable authority to NAB to follow that instruction.
2.15 Subject to your rights implied at law which cannot be excluded, you agree to indemnify NAB for any loss or damage it suffers directly or indirectly as a result of NAB relying on an instruction provided by you under clause 2.14, and that NAB is not liable for any loss or damage caused directly or indirectly to you by:
(a) any breakdown or interruption in the service due to circumstances beyond NAB 's control; or
(b) any corruption of data and any breakdown, interruption or errors caused to your computer or computing equipment as a result of using the service or as a result of software being downloaded to your computer for the purposes of the service.
Electronic documents and communications
2.16 Any documents which NAB is required to provide to you under clause 2.1 of the General Matters (including these terms and conditions and any other information or communication in relation to the establishment of your term deposit, will be given to you using the service unless:
(a) otherwise specified in this agreement; or
(b) NAB otherwise determines.
2.17 You agree to print, download or otherwise retain a copy of the documents in clause 2.16 for your records.
2.18 A communication is deemed to be received by you when the communication enters your designated information system or is capable of being viewed from your computer and is effective when received even if you are not aware of its receipt.
2.19 For the purposes of the Electronic Transactions Act, the server on which the mailbox for your designated address resides is to be taken to be your designated information system.
2.20 An electronic communication is deemed to be sent from where NAB has place of business and is deemed to be received where you have your residence. For the purposes of this clause:
(a) NAB 's place of business is 500 Bourke Street, Melbourne, Victoria; and
(b) if you have more than one residence, your residence is your principal residence.
Your email address
2.21 For the purposes detailed in clauses 2.16 to 2.20, you agree to NAB sending you electronic messages to your email address which you have advised NAB of at the time of submitting your Online Application.
2.22 You warrant to NAB that your email address is correct and current, and that it belongs to you.
Governing law
2.23 You agree that this agreement and the investment of monies in a term deposit as contemplated by this agreement are governed by the law in force in Victoria and each party irrevocably and unconditionally submits to the non-exclusive jurisdiction of those courts.
Residency
2.24 You acknowledge that only individuals living in Australia are able to deposit monies in a term deposit with NAB using an Online Application.
Meaning of words
2.25 Banking day means a day other than a Saturday or Sunday, or a public, special or bank holiday in the State or Territory where the product is opened.
NAB means National Australia Bank Limited and its successors and assigns.
Online Application means an application lodged by you using NAB's website to invest monies in a term deposit, which application includes all relevant details relating to your investment, including without limitation, the term of the term deposit, interest rate payable on the term deposit and maturity instructions.
Service means the service NAB makes available through the Internet to enable the electronic receipt and transmission of information in relation to the term deposit, including by email and NAB's website: nab.com.au
Standard Application means an application to invest monies in a term deposit by attending a branch of NAB or by telephoning NAB on 13 22 65.
You means the customer or customers who open the product, and if there is more than one, you means each of them separately and every two or more of them jointly. You includes your successors and assigns and, in relation to your rights to operate the product, any other authorised signatory to the product acting within his or her authority.
Preparation of this PDS was completed on 13 February 2004
For more information call
13 22 65
Open 8am-8pm EST, Monday to Friday.
Hearing impaired people with telephone typewriters can contact us on 13 36 77
Download a copy of NAB's Term Deposit Product Disclosure Statement (PDS) including Terms & Conditions.
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©2004 National Australia Bank Limited ABN 12 004 044 937
AFSL 230686 399-963 (02/04)
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