fbpx

Bank Accounts Where You Can't Withdraw

Take an in-depth look at savings accounts where your money is locked away -and find out with Savvy which of these accounts is the best.

Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on September 11th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Compare bank accounts

Finding the best bank account can save you hundreds on fees and connect you with the very latest in smart banking technology.  Compare bank accounts from a wide variety of providers with Savvy to find the very best offers available on the market right now.

site-logos Up Everyday Account
  Monthly Account Fee Features Card Type ATM Fee Interest Rate  
site-logos $0
  • PayId,
  • Osko,
  • Samsung Pay,
  • Apple Pay,
  • Google Wallet,
Mastercard $0 0%
Go to site

Use invite code SAVVY10 for $10 upon successful sign-up. (Refer to offer T&Cs on Up website)

More details
site-logos ING Orange Everyday
  Monthly Account Fee Features Card Type ATM Fee Interest Rate  
site-logos $0
  • PayId,
  • Apple Pay,
  • Google Wallet,
Visa $0 0%
Read review

Rebates on ATM fees anywhere in Oz. No ING international transaction fees. Zero monthly fees.

More details
site-logos NAB Classic Banking Account
  Monthly Account Fee Features Card Type ATM Fee Interest Rate  
site-logos $0
  • PayId,
  • Samsung Pay,
  • Apple Pay,
  • Google Wallet,
Visa $0 0.01%
Read review

No monthly account fees ever, with no conditions. Free use at over 7,000 ATMs around Australia. No overdrawn fees if you happen to go over your account balance. Open an account in less than 7 minutes.

More details
site-logos St.George Complete Freedom Account
  Monthly Account Fee Features Card Type ATM Fee Interest Rate  
site-logos $0
  • Samsung Pay,
  • Apple Pay,
  • Google Wallet,
Visa $0 0%
Read review

Get $40 with a new Complete Freedom everyday bank account.

More details
site-logos Westpac Choice
  Monthly Account Fee Features Card Type ATM Fee Interest Rate  
site-logos $5
  • Samsung Pay,
  • Apple Pay,
  • Google Wallet,
Mastercard $0 $0
Read review

Westpac Choice for easy day-to-day banking

More details

Disclaimer: Savvy is not advising or recommending any particular product to you. We provide general information on products for the purposes of comparison, but your personal situation or goals are not considered here. Although we try to make our comparisons as thorough as possible, we do not have information on all products on the market on our site.

You should always consult a given offer's PDS or further documentation in the process of deciding on which loan to choose, as well as seeking independent, professional advice. If you decide to apply with one of the lenders listed above via our website, you will not be dealing with Savvy; any applications or enquiries will be conducted directly with the lender offering that product.

Bank accounts which lock your savings away explained

Savings accounts where you can’t withdraw your money without losing interest are an ideal way to motivate yourself to be disciplined and save money.  Compare locked savings accounts with term deposits and bonus saver accounts right here with Savvy to see what each type of account offers to keen savers.  We compare financial products to make choosing the best account easier for you.

How do bank accounts where you can't withdraw work?

Bank accounts which limit access to your savings are known as locked bank accounts, also called closed accounts.  Although you aren’t physically prevented from removing your funds, you’ll lose substantial interest or be penalised if you do. 

Other types of savings accounts have withdrawal limits per month to encourage you to leave your savings alone.  Such accounts can be valuable for those who find saving hard or who lack the discipline to let their savings grow.  Savvy can help you find the best savings bank account by providing clear and precise information to help you compare accounts and find one that fits your banking needs.

What different types of conditional savings accounts are there?

Term deposits

A term deposit is one you make for a set period in return for a higher interest rate.  The longer you leave your savings with the bank, the higher the interest rate you may be offered up to a set limit.  You can’t withdraw your funds during your term deposit period (except in very exceptional circumstances and often with at least one month’s notice). The term of your deposit can vary from one month up to several years, with a tiered increasing interest rate depending on how long you leave your savings alone. 

Restricted withdrawal savings accounts

These accounts give you a set interest rate on the condition that you make at least one deposit per month into the account and no withdrawals.  For every month you meet this ‘no withdrawal’ condition, you receive the stated interest.  If you do make a withdrawal, though, you won’t earn interest for that month, so there’s a strong incentive to leave your savings alone and watch them grow.

Bonus interest saver accounts

These accounts offer a basic interest rate and a bonus rate if certain conditions are met.  If you do meet these conditions, which may involve depositing a certain sum per month or maintaining a minimum amount in your account, you can be awarded the bonus interest.  If you don’t meet the conditions, though, you only receive the basic interest rate, which can be as low as 0.02% p.a.  This is the ‘carrot on a stick’ method to encourage you to save your money and grow your balance month by month.

Others offer a set interest rate if conditions are met involving other linked accounts.  These conditions may require you to make a certain number of purchases with a linked credit or debit card or make a set number of transactions in your linked transaction account.  For example, you may have to make five credit card purchases a month or ten transactions a month in your linked transaction account in order to earn the advertised interest rate.

How do I choose between the different types of savings accounts?

  1. Decide how much money you want to lock away to gain interest for you. Think about how long you’re prepared to lock your money away for and how likely you are to need to gain access to your funds at short notice
  2. Consider whether you’re able to abide by conditions which may be imposed in return for a higher interest rate. Are you prepared to open a linked everyday account?  Do you want to be locked into making a set number of transactions or depositing a set amount per month?
  3. Use Savvy’s free comparison service to compare the same type of account side by side. For example, if you’re comparing term deposits, compare three-month term deposits side by side so you can get a clear idea of which institution offers you the best deal
  4. When you’ve decided which savings or locked account is the best for you, click on the ‘open account’ button and begin the process of setting up your new account

More frequently asked questions about locked savings accounts

What if I need to access my funds in an emergency?

There are emergency provisions which will allow you to access the money you’ve locked away in a term deposit.  These are known as ‘hardship provisions’.  You’ll need to apply in writing to your bank explaining the hardship you are suffering if you wish to withdraw your funds. This will cause you to lose any bonus interest offered.

Do all banks offer term deposits for the same length of time?

No – not all banks offer term deposits for all periods, so it’s well worth using Savvy to compare different banks and financial institutions to find one that offers the term you’re after.  The most common term periods are one month, three months, six months and 12 months, after which you’ll be able to choose from yearly increments typically up to five years.  

How often is interest paid back into my account?

Interest can be paid monthly, quarterly or annually, depending on the type of account you choose.  The more frequently you are paid interest, the faster your savings will grow, as you’ll end up earning interest on your interest, which is a process known as compounding. 

Do banks pay loyalty bonuses for re-investing?

Yes – some banks offer additional bonus interest in the form of a loyalty bonus if you roll your term deposit over when the initial deposit period has finished.  For example, if you take out a six-month term deposit and then decide to invest your money for another six months with the same bank, you may be eligible for a bonus interest rate on the second six-month term.

Helpful guides on bank accounts

Bank Accounts Banner - Woman sitting on the couch with her laptop while her partner points at the screen

Change Bank Accounts

Compare bank accounts Finding the best bank account can save you hundreds on fees and connect you with the very...

Bank Accounts Banner - Young couple comparing joint bank accounts on their tablet

Compare Joint Bank Accounts

Compare bank accounts Finding the best bank account can save you hundreds on fees and connect you with the very...

Bank Accounts Banner - Woman typing on her laptop sitting at a kitchen bench

Types of Bank Accounts

Compare different bank account types Finding the best bank account can save you hundreds on fees and connect you with...

Bank Accounts Banner - Senior couple looking at SMSF bank accounts on their laptop at a resort

Best SMSF Bank Accounts

Compare bank accounts Finding the best bank account can save you hundreds on fees and connect you with the very...

Bank Accounts Banner - Man looking for lost bank accounts on his laptop in his office

Lost Bank Accounts

Compare bank accounts Finding the best bank account can save you hundreds on fees and connect you with the very...