Significant Benefits of a Deposit Account

Benefits include (but are not limited by)

When you invest in a fixed term deposit you receive returns linked to prevailing market interest rates at the time of fixing the interest rate;
When you invest in a fixed term deposit you are protected from falling interest rates during the term of your investment;
When you open a current deposit account with us, you receive the benefit of facilitating your domestic and overseas receipts and payments.

Significant Disadvantages of a Deposit Account

Disadvantages include (but are not limited by):

When investing in a fixed term deposit you cannot benefit from increases in interest rates that may occur during the term of the deposit as your interest rate is fixed for the term;
When you select a current account you will not receive any interest on the monies deposited in the account;
You must give us at least 31 days’ prior notice for early termination. A reduced rate of interest or penalty rate may apply in these circumstances.

Significant Risks of a Deposit Account

Significant risks include (but are not limited by):

Investing in a fixed term deposit provides protection from falling interest rates during the term of your investment. However, as the rate of return that you receive and the term of the investment are both fixed, you forgo the opportunity to benefit from any rise in the interest rate during the term. You should ensure that you are able to monitor and value any interest rate movements when investing in an Account.

Currency Risk is the risk that is on account of adverse exchange movements in the value in AUD of your foreign currency current account or term deposit account. Should you hold an off-setting position in the foreign exchange markets or in a commitment to spend this currency then your loss may be offset in part or in full by the offsetting position. You acknowledge that the Union Bank of India, Sydney Branch, have no liability or responsibility, whatsoever and have given no advice, in respect of movements in interest rates or exchange rates. You will make your own judgements and decisions on whether to open an account in a currency other than Australian Dollars. The Union Bank of India, Sydney Branch does not monitor movements in exchange rates for you – this is your responsibility.

You must give us at least 31 days’ prior notice for early termination. A reduced rate of interest or penalty rate may apply in these circumstances.

You should also note that as a branch of an overseas bank, the Union Bank of India, Sydney Branch is not covered by Division 2 of the Banking Act, and as such, is not subject to the depositor protection provisions of that Act. These risks are the most significant risks. However there maybe other considerations that are relevant to you should you open an Account. In all cases, you are reliant on the ability of the Union Bank of India, Sydney Branch to meet its obligations to you under the terms of the particular product. You should obtain your own independent professional advice to determine whether the Account is appropriate to your particular circumstances.

Tax Implications

Investing and dealing with investments has tax and often social security implications. These can be

complex and are invariably particular to your circumstances. Investment income in the form of interest

earned on a fixed term deposit is generally taxable income. You should discuss the timing and derivation of this income with your independent professional tax adviser.

Read our PDS – DEPOSIT document