Term Deposits – a high growth savings approach

A Term Deposit account or a TD as we like to call it, is a type of fixed investment in which your funds are locked away for an agreed period of time at a fixed interest rate.

A Term Deposit fixed investment can be a great savings strategy because Term Deposit accounts typically offer much higher rates of interest than other savings or transaction accounts do.

Often with fixed investments is that the longer you fix your money in a Term Deposit account, the better the interest rate.

Want to open a Term Deposit account with us?

You can contact us directly and we will help you through the process, or if you wish to go straight to the application process now, here are the forms for Personal Term Deposits or Business Term Deposits.

What makes a Term Deposit an interesting investment?

Great rates – guaranteed interest rates for the agreed period and it’s locked into that rate in case the interest rates decrease during the course of the term.
Certainty – licensed banks and credit institutions like Kontiki Finance Limited are obliged to repay your investment, unlike share market equities, unit trusts, or property investments.
No fees – no entry or exit fees, no account fees, no statement fees, no admin fees, and no commissions meaning all the income is yours provided you fulfill the agreed term.
Returns paid out to suit – choose from monthly, quarterly, bi-annual, or annual interest payments.
Only 10% Tax – The tax on Term Deposit interest in fixed and final at 10%, unlike other investments that are taxed at a higher rate. Retirees may also be eligible for an exemption up to $30,000 per person.

You must also consider the following with a Term Deposit:

Money tied up for the full term – The money is tied up until maturity, however, you may be able to apply for a loan using your Term Deposit as security.
Exit only in some circumstances – Early redemption is possible due to genuine hardship incurs an exit fee.
Not a liquid asset – less flexible than some other investment options.

What are the current Term Deposit rates?

Term	Rate	Term	Rate
3 months	0.20% pa	48 months	2.50% pa
6 months	0.35% pa	60 months	3.00% pa
9 months	0.50% pa	72 months	3.25% pa
12 months	1.75% pa	84 months	3.50% pa
18 months	1.75% pa	96 months	3.75% pa
24 months	2.00% pa	108 months	3.75% pa
36 months	2.25% pa	120 months	4.00% pa

Please carefully read the disclosure brochure that is available from Kontiki Finance Limited.

Interested in learning more?

See our Glossary of Terms and Definitions of Term Deposits including information on Fees and Disclosure Statements here.

How long is the investment for?

Our terms range from three months* up to 120 months (10 years). A specific maturity date may also be stipulated at the time of investment.

What is the Minimum Deposit Amount?

We accept deposits from $5,000* or more. If you have an amount greater than $250,000* please call us for a rate quote.

When are Interest Payments made?

The interest is fixed for the agreed term. You may elect to have interest paid:

Monthly, Quarterly, 6-monthly, annually or on maturity

When your interest is paid, it can be either:

Reinvested together with your original deposit amount and earn compounded interest; or
Credited automatically to your nominated bank account, or
Paid to you by direct credit or cheque

When you deposit funds with us simply let us know how you would like to have your interest paid.

What Happens when my Deposit term is up?

At the end of your deposit term, unless we are notified in writing, your deposit will be automatically renewed for the same term but at the interest rate prevailing at that time. We will write to you one month prior to maturity, seeking your reinvestment intentions.

What are the Deposit Methods available?

We accept bank transfers; cheques (company or personal) or bank cheques for Term Deposit accounts.

Are there Early Term Withdrawals?

In cases of genuine hardship, Kontiki Finance will consider allowing you to withdraw your Term Deposit prior to maturity. If Kontiki Finance does approve your request there will be an interest rate reduction and break fee. Please refer to our current schedule of fees and charges, (available on request).

What does Capital Guaranteed mean?

It means that KFL has a legal obligation to guarantee the return of the whole sum invested to the term depositor on the maturity date of the deposit.

This differs from other classes of investment such as unit trusts, share market investments, and pension contributions as these investments carry no Capital Guarantee and thus there is no legal obligation from these investment schemes to return any of your invested funds to you.

We have used the expression Capital Guaranteed in our promotional material as this is the global financial market’s expression for identifying our legal obligation to return deposited funds and also we wish to educate the Fijian market about the differing risks between investment products. This is part of Kontiki Finance Limited’s continued effort to improve Financial Literacy in Fiji.

An additional advantage of Term Deposits over other growth unit trusts, share market investments, and pension contributions is that the interest rate offered by KFL at the Term Deposit commencement is contracted over the entire tenure of the investment. Whereas the yield on the other classes of investment above is not fixed at all and could conceivably be zero or be reduced after the investment funds are received without reference to the investor.

Kontiki Finance Limited cannot reduce your Term Deposit interest rate yield during your investment term. Also, we do not charge any fees to deposit or withdraw on maturity from your Term Deposit. This is often not the case with other classes of investment.