Is a redeemable share term investment a term deposit or shares?
As a building society which is also a registered bank, we pride ourselves on being a little bit different. Our Share Term Investment is one of those points of difference, it operates the same as a term deposit, although you purchase redeemable shares in the Bank equal to the amount of money you invest. Redeemable shares are issued for a fixed term and carry the right to a fixed dividend (which is like interest on a term deposit) and are redeemed at the expiry of the fixed term. The redeemable shares also carry membership voting rights at building society meetings. They cannot be traded on the stock exchange like ‘shares’ in a listed company.
How can I put my money into this term investment?
If you are already an SBS Bank member you can nominate the SBS account that the deposit is to come from as part of your application. If you are new to SBS Bank we will set up a new bank account as part of your application process. Once you transfer the money into this account we will open your term investment.
Can I change my maturity instruction?
Yes, you will have the ability to change your maturity instructions from your internet banking login.
Can I access my money before the maturity date?
Plans can change and you might suddenly need access to your savings. It may be possible to end your term investment early, but there are a few conditions to keep in mind. Because you have pledged your money for a fixed period of time, the bank must approve any withdrawal as we match investments with lending on residential homes. We have criteria like hardship to help us prioritise requests. A reduced rate of interest will be applied if you end your investment early.
Can I add more money to my term investment?
No, once a term investment is set up you won’t be able to add more money to that investment until it matures. You can set up a new term investment with the additional money. Once your term investment maturies you have a limited time to add funds to the current investment when it is reinvested.
Are term investments guaranteed?
SBS Bank does not guarantee term investment balances nor returns not yet paid to you.
I want to open a term investment, but I have not joined the bank yet, what do I need to do?
You can join SBS Bank as part of the online application to open a new term investment. Government legislation for Anti-Money Laundering requires the bank to verify you as part of our the joining process. To complete this stage of the application you will need to download the SBS Verify app to our smartphone from either Google Play or Apple app store. This mobile application will take you through the steps to verify your identity including taking photos using your phone’s camera on your driver’s licence or passport; a selfie photo and a photo of your address identification. You will be instructed during the electronic application when to use the mobile application.