It also boasts what is currently one of the nation’s highest savings account interest rates, offering an introductory rate of 5.75% p.a. at the time of writing.
That rate is available for the first four months on its aptly named High Interest Savings Account.
It has seen the bank garner attention from everyday depositors and self-managed super fund (SMFS) investors alike, as well as a raft of Aussies leaning to term deposits in the current climate.
Though, if you’re looking for a home loan or car loan, Rabobank ain’t your institution.
It lends exclusively to farmers and those in the agriculture business.
So what is the agricultural finance giant and why is it among those leading the way when it comes to at-call returns for everyday consumers? The answer is an interesting one.
From tulips to wheat fields: Rabobank's global journey
Rabobank started life around 125 years ago in the tulip-clad Netherlands, far from Australia’s red plains and pristine beaches.
And it didn’t start out the way many might assume.
See, Rabobank isn’t a traditional bank. Rather, it is a co-operative.
“It was really farmers trying to support other farmers,” Rabobank head of online savings Julie Blanchard told Savings.com.au .
“Farmers were trying to go to banks at the time to seek funding for growth and were having difficulty being able to meet the requirements of financial institutions.
“So Rabobank was born.”
Its co-operative structure means Rabobank doesn’t have shareholders, unlike the majority of Australia’s larger banks.
Most banks in Australia are either listed on the stock market, meaning their profits go to shareholders, or are mutual banks, the profits of which aim to aid those who bank with them.
Rabobank’s profits, on the other hand, go to supporting the agriculture industry that feeds us and the world.
That same industry contributed $56 billion of value-added GDP to the economy in 2022-23 and provides more than 90% of the fruit, vegetables, meat, milk, and eggs sold in Australian supermarkets.
“We’re trying to stick to that heritage, the values, and the brand proposition of what we set out to do all those years ago in the Netherlands: Supporting rural and agricultural businesses to grow and flourish in a pretty challenging environment,” Ms Blanchard said.
'Challenging’; a choice word encapsulating what it can be to work the stunning and volatile land down under.
Australia often seems to be a magnet for natural catastrophe.
Living memory encompasses near-countless droughts, fires, cyclones, and floods.
Australians are regularly praised for their resilience and adaptability in the face of such challenges. However, those characteristics are greatly enhanced by support.
Rabobank's unique structure provides more than just a financial leg up to the agricultural sector.
It fosters a deep understanding of the nuances and challenges facing farmers – a feat that’s especially important in a place as diverse as Australia.
Supporting farmers, rewarding savers
Every single dollar deposited into a Rabobank savings account or term deposit goes to funding loans offered to the people on the ground of Australian agriculture.
That’s one pretty good reason to bank with the Dutch giant, and there are many more.
In fact, there are 575.
That’s how many basis points of annual return is currently on offer to new depositors for the first four months of them opening a high interest savings account with the bank – 5.75% p.a. (for balances under $250,000).
On the first day of the fifth month, however, a saver with less than $250,000 deposited would begin to realise a rate of 4.40% p.a. – still competitive, but no longer one of the highest rates on offer on the market.
At that point, they might turn their attention to one of Rabobank’s other products.
Perhaps one of its Notice Saver accounts, which lock funds away for a period of 31, 60, or 90 days and currently offer rates as high as 5.25% p.a.
Its PremiumSaver account, meanwhile, promises a 5.10% p.a. return, as long as a depositor grows their balance by at least $200 a month.
“We're making sure we've got deposits flowing through the door to lend back out to the farmers and agri-businesses that we’re supporting,” Ms Blanchard said.
“Part of that is making sure that we've got really strong alternatives for customers when their intro rate expires.
“So if they did come in on an intro rate, they have a range of really good options available to them – notice savers, PremiumSavers, and term deposits – that make their investment with Rabobank a seamless and positive experience.”
Though, as any savings account or term deposit enthusiast will tell you, interest rates can and do change quickly, and market leaders typically steal the coveted title from one another on a regular basis.
But no matter what the competition is doing, Rabobank currently aims to keep its rates among the highest offered in Australia, Ms Blanchard said.
"Rabobank Australia: Nurturing agriculture though high-yield savings products" was originally published on Savings.com.au and was republished with permission.