Read the NAB Inflation Deposit Supplementary Product Disclosure Statement (SPDS)

Read the NAB Financial Services Guide (FSG)

Read the NAB Inflation Deposit brochure

Key benefits
An investment in a NAB Inflation Deposit may have the following benefits:

• Access inflation-adjusted returns – by investing in a deposit with returns linked to the CPI.
• Protect the purchasing power of your interest income – by receiving Interest Payments linked to changes in the CPI.
• Protect the purchasing power of your investment amount (optional) – by electing at establishment to link your principal amount to the CPI.
• Increase investment diversification – help diversify your overall investment portfolio.
• Flexibility – choose the principal amount, term, and whether or not to link your principal to the CPI in accordance with your individual preferences and investment needs. 
• Peace of mind – like other NAB deposits, NAB Inflation Deposits are a liability of NAB and subject to statutory priority.

Product features

Minimum investment: A$100,000 for each NAB Inflation Deposit.

Investment term: One to ten years in quarterly increments for each NAB Inflation Deposit.

Early withdrawal: NAB Inflation Deposits are designed to be held until maturity. You may request withdrawal of all or some of your principal amount prior to maturity subject to the conditions and procedure set out in the PDS. If you make an early withdrawal, you may receive back a net amount less than your principal amount due to the recovery of our costs and other charges connected with early withdrawal.

Cooling off period: There is no cooling off period.

Fees: There are no establishment, transaction or monthly fees payable.
Fees and charges are payable if you withdraw your NAB Inflation Deposit or we otherwise terminate your NAB Inflation Deposit prior to maturity.

Commissions:  Where you invest through a financial adviser, we may pay your adviser, for the term, a commission up to a maximum of 0.50% p.a. (inclusive of GST) of the principal amount (less principal repayments).
Your adviser may agree with you to forgo some or all of their commission payment.

Disclosure: Product Disclosure Statement dated 29 October 2010.

Key risks
You should carefully consider the risks and talk to your legal, financial or tax adviser before investing in a NAB Inflation Deposit. We have highlighted some key risks below but these may not be the only risks faced by an investor.

• Market risk – inflation rates and the CPI may not move in accordance with your expectations when investing, which may result in lower returns than you anticipated or could otherwise obtain in the market. 
• Early withdrawal costs – variation or termination before maturity may result in a cost to you and cause you to receive back a net amount that is less than your principal amount.
• Credit and payment risk – you may suffer loss if NAB does not meet its payment obligations to you or perform its other obligations to you under your NAB Inflation Deposit.

Who should invest?
The NAB Inflation Deposit may suit investors who are seeking a term deposit style investment and who are also looking to: 

• access inflation-adjusted returns;
• protect the purchasing power of their principal amount and/or investment income; or
• increase their investment diversification.

What is a NAB Inflation Deposit?
The NAB Inflation Deposit is a term deposit where your Interest Payments (and your principal investment at your election) are linked to changes in the All Groups Consumer Price Index (CPI) during the term of the deposit. 
When you invest in a NAB Inflation Deposit, you choose (subject to limits set out in the PDS):

• the principal amount you intend to deposit;
• the term of your deposit; and
• whether or not to link your principal amount to the CPI.

Interest Payments
All NAB Inflation Deposits pay quarterly Interest Payments linked to the change in the CPI from the commencement date of the deposit. Interest Payments are calculated according to the following formula:

Interest Payment = principal amount x base rate x (current CPI / base CPI) x (days in the period / 365)

The base rate is a fixed interest rate set at commencement of a NAB Inflation Deposit and remains fixed until maturity. Our calculation of the base rate takes into account a number of market factors that change constantly, including prevailing market inflation expectations, market interest rates, and market volatility.

Principal Inflation Adjustment
If you choose at establishment of your NAB Inflation Deposit to link your principal amount to the CPI, following maturity you will receive a Principal Inflation Adjustment reflecting any overall increase in the CPI during the term of your deposit. You will not receive a Principal Inflation Adjustment if there has been an overall decrease in the CPI or the CPI is unchanged.

The Principal Inflation Adjustment is calculated according to the following formula:
Principal Inflation Adjustment = principal amount x [(maturity CPI/ base CPI - 1)]
The Principal Inflation Adjustment is paid following maturity along with any final Interest Payment and return of principal amount (unless you have chosen to reinvest).
If you have previously chosen to link your principal amount to inflation we will also calculate, and if applicable, pay you the Principal Inflation Adjustment.

National Australia Bank Limited (NAB) (AFSL 230686) is the issuer of NAB Inflation Deposits.

Certain key information about NAB Inflation Deposits is outlined in this website. You must carefully read the NAB Inflation Deposit Product Disclosure Statement dated 29 October 2010 (PDS) before making a decision to invest. Click here to download a copy of the PDS.

Call your Global Markets Investments representative today:

Important Information
The information contained in this website is published by National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 (NAB). Any advice on this site has been prepared without taking into account your objectives, financial situation or needs. 

NAB Inflation Deposits are issued by NAB and offered on the terms of the Product Disclosure Statement dated 29 October 2010. Before acting on any advice on this site, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you obtain and consider the Product Disclosure Statement dated 29 October 2010 (PDS) available here or by calling 1800 652 669, before making any decision about a NAB Inflation Deposit, including whether to acquire or to continue to hold it.

The information contained in this website is of a general nature only.  The information contained in this website has been prepared for the purpose of providing general information only without taking account of any particular investor's objectives, financial situation or needs and is not an offer to sell, or solicitation of an offer or a recommendation to buy any financial product and is not intended to be a complete summary or statement of the NAB Inflation Deposit. The information contained in this website is not a Product Disclosure Statement and it does not contain all of the information that such a Product Disclosure Statement is required to contain.  An investor must, before making any investment decisions, consider the full details set out in the PDS and seek professional advice, having regard to the investor's objectives, financial situation and needs.

If you invest in a NAB Inflation Deposit, NAB or any of its related bodies corporate (the NAB Group) may receive remuneration or other benefits in relation to your investments as specified in the PDS. 

NAB voluntarily subscribes to the Code of Banking Practice which lays down standards of good banking practice for dealing with small businesses and individuals.  A copy of the Code can be obtained by calling 13 10 12.

Read the Financial Services Guide as it relates to the NAB Inflation Deposit