Farm Management Deposit - Elders Rural Services

Farm Management Deposit


With Rural Bank’s Fixed and Variable Rate Farm Management Deposits (FMDs) your money is available when you most need it.

FMDs allow you to set aside pre-tax income from your profitable years and earn interest on it.

To enquire about Farm Management Deposits contact your local branch or call the Agri Finance team on 1300 618 367

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“There are good years and not-so-good years – that’s part of farming. We want an easy way to put aside money in the good years that will help us when things are a bit tougher.”

Rural Bank client.

About our Farm Management Deposits (FMDs)


Individual primary producers with a taxable non-farm income of $100,000 or less over a financial year.

To be eligible for taxation benefits, you need to hold funds in your farm management deposit (FMD) for at least 12 months. If you’re switching to Rural Bank from another financial provider, your funds must be transferred electronically. Ask your tax adviser if you qualify.


For fixed rate deposits, you can choose from 3, 6, 12, and 24 month terms. For variable rate deposits and FMD Offset Accounts your funds are available at call however your funds must be held for at least 12 months to be eligible for tax benefits.


Fixed rate deposits require a minimum of $5,000, or a minimum balance of $1,000 applies to variable rate deposits and FMD Offset Accounts. The total value of all FMDs held per farmer cannot exceed $800,000. You can have more than one FMD, up to a combined value of $800,000 per farmer.


For fixed rate deposits, interest is paid on maturity for 3 and 6 month terms.

For 12 and 24 month terms, interest can be paid monthly, quarterly, or annually. Interest on variable rate deposits is paid annually on 1st July. Interest for all deposits is calculated daily on the closing balance. Interest must be credited to another account held in the account holder’s name.

Interest is not payable on FMD Offset Accounts. Instead the FMD Offset allows clients to reduce the interest payable on their linked eligible Rural Bank Term Loan.


There are no account or transaction fees on fixed rate or variable rate FMDs. An FMD linkage fee applies to FMD Offset Accounts.

To find out more information about your options visit the Rural Bank website.

View Rural Bank website

Farm Management Deposit Offset Account

Just as seasons and prices fluctuate, so does farm income. To better manage risk and strengthen your financial future, Rural Bank’s FMD Offset Account gives you more options to manage your farm finances.

This FMD Offset Account allows primary producers to offset capital held in an FMD account against the balance of an eligible Rural Bank variable rate Term Loan to assist in reducing primary production business funding costs.

This new account lets me use my FMD funds to reduce my farm’s interest costs. For me this is a better use of my money.


View Rural Bank website for more

Who’s eligible?

Specific FMD Offset legislative criteria apply to this account, so ask your tax adviser if you qualify.

The FMD Offset Account can only be linked to an eligible loan of the FMD owner or their partnership (excludes companies, trusts or a person who is not for the purpose of the primary production business).

How does the FMD offset account work?

This FMD Offset Account provides an extra option for you to benefit from the pre-tax income you have set aside from profitable years in your Rural Bank FMD.

What about interest?

Interest is not payable on FMD Offset Accounts. Instead, the FMD Offset facility allows clients to reduce the interest payable on their linked eligible Rural Bank Term Loan.

The FMD Offset facility allows you to reduce the interest payable on your linked eligible Rural Bank Term Loan. No interest is earned on the FMD Offset Account balance, however every dollar in your FMD Offset Account is used to reduce the principal that the loan interest is calculated on.


Enquire to find out more

To find out more about you FMD options submit an enquiry below and your local Agri Finance Manager will be in touch soon.

Contact Elders Agri Finance on 1300 618 367 , email us or visit your local Elders branch.

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Interest rates advertised are correct as at the date of publication and subject to change without notice.
Disclaimer: An individual can own more than one farm management deposit, and can own farm management deposits with different FMD providers, but the sum of the balances of all the farm management deposits of an owner claimed as a deduction must not be more than $800,000. Products are issued by Rural Bank – A Division of Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL/Australian Credit Licence 237879. Individual circumstances may vary and special legislative requirements must be adhered to. Before making any investment decision you should consider your situation and consult your taxation adviser to ensure you meet legislative requirements and for FMD Offset Accounts that you understand your obligation to comply and the applicable penalties for noncompliance and wider taxation implications. Terms, conditions, fees and charges may apply. Full details are available on application by phoning the Rural Bank Customer Service Team on 1300 660 115 or online at or by visiting your local branch. All information is subject to change. For deposit products Elders Rural Services Australia Limited may receive a commission based on the average account balance. Full details are available in the Elders Financial Services Guide (FSG). Products are distributed by Elders Rural Services Australia Limited ABN 72 004 045 121 AFSL 237757.