Rabobank today launched a new term deposit product providing market leading interest rates and increased flexibility.

Announcing the launch of the term deposit product today, Rabobank general manager of Rural Australia Peter Knoblanche said the deposits offered investors the security of depositing their money in Australia's safest bank.

"We are just beginning to emerge from a period of great economic turbulence and so it is more important than ever that your money is invested securely. At the end of the day your money is only as secure as the bank that's backing it and Rabobank has the highest credit rating of any retail bank in Australia," Mr Knoblanche said.

"In addition, as a specialist food and agribusiness bank, any funds deposited with Rabobank are injected back into our lending activities in rural Australia."

Rabobank's term deposits range from 30 days to five years and offer very competitive fixed term interest rates. Rabobank's new term deposit is currently paying interest of seven per cent on a five year term.

"We have sought to offer our customers great value and flexibility and so the term deposits have no bank or service charges, a choice of interest paid monthly, quarterly, half yearly and yearly (for terms over one year) and the option of compounding your final interest payment on maturity of the deposit," Mr Knoblanche said

"This is a product we are proud of and I am confident that the mix of competitive interest rates, security and flexibility will complement our clients' businesses and enable them to achieve their financial objectives."