Commonwealth Bank offers new fixed rate Farm Management Deposits

5 June 2002

It is difficult for any business to manage volatile conditions, but primary producers face more unpredictability than any other industry.

Agribusinesses therefore require sound financial management tools to smooth the fluctuations in income, and one such tool is a Farm Management Deposit (FMD) account.

Commonwealth Bank Chief Manager Agribusiness, Steve Morgan, has announced that after the success of its original variable interest rate FMD, the Bank has now expanded its FMD offering to include a fixed interest rate option.

"The FMD is a tax effective way for farmers to shift income from more productive years to those affected by adverse factors when it is needed most," he said.

Mr Morgan said that as well as the new option of fixed rate terms, customers can also enjoy the tax advantages of a FMD and the security of knowing what interest their savings will earn.

FMD deposits must be held for a minimum of 12 months to qualify for the tax benefit of the account. The minimum deposit is $1,000pa for variable interest rate accounts and $5,000pa for fixed interest rate accounts, while the maximum deposit for both accounts is $300,000pa.

Mr Morgan said the advantages of the Commonwealth Bank's Farm Management Deposit include a choice between a 12 or 24 month term for fixed accounts as well as the variable rate account option, an interest rate of 5.40% for a 12 month fixed term (as at 5/6/2002) and a competitive variable interest rate.

"As part of our ongoing commitment to regional Australia and agribusiness, we are pleased to be able to offer our customers greater choice, flexibility and security in managing their incomes in a tax-effective way," Mr Morgan said.

Additional Information
Voted 'Agribusiness Bank Of The Year' in 1999, 2000 & 2001, the Commonwealth Bank is one of the strongest supporters of Australian Agribusiness. For more information on Farm Management Deposits and other Investment Accounts, simply call 13 1998, between 8am and 8pm Monday to Friday