Farm Management Deposit account
Special offer for new and renewed accounts
0.6% p.a. fixed for 24 months. 0.55% p.a. fixed for 12 months.
Offer available from 10th May 2021 for a limited time only on Farm Management Deposits opened or renewed by eligible FMD Scheme customers via Online Banking. Applies to balances of $1,000 to $800,000. Interest paid monthly or at maturity. Terms and conditions apply*.
Benefits for your business
Defer income tax payments while earning interest
- Saves money securely for when you need it
- Pays guaranteed returns with a fixed interest rate
- Can provide tax benefits for deposits ($1K-800K) of a year or more 1
- Open online in less than 10 minutes (eligible Westpac customers).
Open a Farm Management Deposit account
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New to Westpac
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What is a Farm Management Deposit (FMD)?
Support for primary producers
The FMD scheme is a government initiative that helps farmers build cash reserves for future needs (such as restocking or replanting) using tax-efficient savings.
Guaranteed returns
A Farm Management Deposit account lets you put excess income to work earning interest in a fixed-term savings account.
Deferred tax payment
Eligible income deposited into an FMD account for a year or more is tax deductible in the financial year of the deposit – and only becomes taxable when it’s withdrawn.1
FAQs about Farm Management Deposits
Yes, if you’re an existing Westpac customer and are registered for Online Banking, you can apply online for a Farm Management Deposit account in less than 10 minutes.
If you don’t have Online Banking or you’re not yet a customer, please request a callback by completing our simple online form. An FMD business banker will get back to you within one business day to help get you started.
Yes, in most circumstances you can renew your Farm Management Deposit account online.
- Terms of 12 months or less are paid monthly or on maturity
- Terms of 1 to 60 months are paid monthly
- Terms greater than 12 months are paid annually, then at the end of the term
Interim interest payments can be made:
- directly to an account held with Westpac that is in the same name as your Farm Management Deposit account; or
- through direct credit to an account at any Australian financial institution.
Please note that interim interest payments cannot be made back in to your Farm Management Deposit account.
If we do not receive instructions and your Farm Management Deposit rolls over automatically, it may be re-invested at a lower rate than the original fixed interest rate.
At maturity or at the end of any notice period, the principal and any remaining interest instalments can be paid:
- directly to an account held with Westpac that is in the same name as your Farm Management Deposit account;
- by direct credit to an account at any Australian financial institution;
- by bank cheque (fees apply); or
- in cash (advanced notice may be required).
Learn how to manage and renew your Farm Management Deposit account online.
The general principle of a Farm Management Deposit is that you are locking in a set interest rate for a period of time and your funds can't be accessed during that term unless you close your account.
You must provide a minimum of 31 days' notice to access funds prior to maturity (except in cases of hardship as defined by us), and early withdrawal may reduce returns as per our Terms and Conditions (PDF 3MB).
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Things you should know
Find out what information you need to provide to become a Westpac customer.
Eligibility criteria, terms and conditions, fees and charges apply. The minimum amount that can be deposited into a Farm Management Deposit Account is $1000. The total of all Farm Management Deposit Accounts held cannot exceed $800,000. The primary producer’s non–primary production income must be less than $100,000 in the financial year they make the deposit to be eligible for tax benefits.
This information does not take your personal objectives, circumstances or needs into account. Consider its appropriateness to these factors before acting on it and read the Terms and Conditions before deciding.
The taxation position described is general in nature and should not be relied upon as a complete or definitive statement of the law and its application to your circumstances; and it does not constitute tax advice. Westpac recommends you obtain specific tax and financial advice on your own position from suitably qualified advisers before opening an FMD account.
Funds need to be held in a Farm Management Deposit for a minimum of 12 months (except in certain circumstances) to qualify for the tax benefit.