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Australian Unity Term Deposits

Name: Australian Unity Term Deposits
Creator: Savvy
Published: 2022-09-12T17:29:42+09:30

Explore Australian Unity Bank's term deposit offers and interest rates to help you compare your options with Savvy.

Written by , updated on September 11th, 2023

Australian Unity began life in 1840 as the Manchester Unity Independent Order of Oddfellows. From its Melbourne base, it grew and merged with other friendly societies, being renamed Australian Unity in 1993 after its merger with the Australian Natives’ Association.

Further merges with Lifeplan Australia and Big Sky Credit Union created the mutual company we know today. It now offers a range of aged and home care services, plus banking, insurance and financial services including term deposits for residents across Australia.

Find out if Australian Unity is right for your term deposit investments here with Savvy. You can compare interest rates and terms so you’re able to make great decisions about where to invest your previous savings.

*Please note that Savvy does not represent Australian Unity for their term deposit products

Australian Unity term deposits explained

What term deposits does Australian Unity offer?

Australian Unity offers a wide range of term deposits and interest payment options, with terms ranging from one month to five years. All below rates are for interest paid at maturity (up to one year) or annually (over one year) on deposits of $5,000 or more.

Australian Unity: common term deposit interest rates

Term length offered	Interest Rate Offered
1 month	0.75% p.a.
2 months	0.90% p.a.
3 months	1.60% p.a.
4 to 5 months	1.15% p.a.
6 months	2.25% p.a.
9 months	2.85% p.a.
1 year	3.35% p.a.
18 months	3.25% p.a.
2 to 3 years	3.50% p.a.
5 years	3.05% p.a.

(Effective 12 September 2022)

Interest payments options

For term deposits under a year, interest must be paid at the maturity of the deposit period. For terms one year and over, you can choose whether to have your interest paid half-yearly or annually (half-yearly interest comes with a 0.01% p.a. reduction). One-year terms also afford you the option to have your interest paid monthly or quarterly.

SMSF and business term deposits

Australian Unity does offer term deposits for self-managed super funds and businesses, with the interest rates on offer subject to individual application. In general, though, interest rates for SMSFs are around 0.10% p.a. lower than those offered to retail customers.

Minimum deposit amount

The minimum deposit amount for a term deposit is $5,000, with a maximum deposit of $5 million at the advertised interest rates. However, deposits in excess of $5 million are available by individual negotiation.

How do I open a St.George Bank term deposit?

For existing Australian Unity customers, it’s possible to open a term deposit via online banking using your usual customer login details. If you’re not an existing customer, you’ll first have to open an Australian Unity transaction bank account before logging into internet banking and opening your term deposit.

What are the requirements for opening an Australian Unity term deposit?

To open an Australian Unity term deposit, you’ll need:

An Australian Unity transaction account already established
To be aged over 18 years of age
To be an Australian citizen or permanent resident
Your Australian driver’s licence
Your passport
Your Medicare card

The pros and cons of Australian Unity term deposits

PROS

Mid-range interest rates on offer

The interest rates offered by Australian Unity are within the mid-range: higher than those offered by some of the big banks and on par with other smaller online banks.

No fees or charges

Australian Unity does not charge any fees or establishment costs to open a term deposit online.

Wide range of terms available

There’s a wide range of terms available, so whatever your investment horizon, you should be able to find a term deposit to suit your needs.

CONS

Transaction account also required

To transfer funds into and out of your term deposit, you’ll also need a bank account opened with Australian Unity, as payments to other financial institutions aren’t possible.

Restrictive interest payments

If you opt for a term deposit of under one year, interest for such terms is only payable at maturity, meaning you won’t be able to choose monthly, quarterly or half-yearly payments.

Membership required

To open a term deposit, you may need to become an Australian Unity member and be required to pay a membership fee of $1.

More of your frequently asked questions about term deposits

What is a term deposit?

Although many people are familiar with the phrase ‘term deposit,’ not everyone knows what a term deposit is. A term deposit is an agreement between you and your bank or financial institution to lock away a set amount of money for a set period (known as the ‘term’ of the deposit) in return for a fixed rate of interest. As the interest rate and length of the deposit are fixed, you’ll be able to calculate in advance how much money your savings will earn during the life of the term deposit. When your chosen term is over, you can choose to either withdraw your funds and the interest earned or roll them over into another term deposit.

What are the advantages of a term deposit?

The advantages of a term deposit are that you’ll have certainty. You’ll be certain exactly how much interest your savings will earn over a pre-defined period, as the interest rate paid on a term deposit is fixed for the duration of the term. As your savings are locked away for that term, the temptation to dip into your savings is taken away. You can be certain that your savings will be intact at the end of your term, and know exactly how much interest they have earned.

What is the maximum length of term deposit that I can take out?

Financial institutions in Australia offer term deposits up to a maximum of five years in length. Prior to 2007, ten-year term deposits were routinely offered to customers wanting to lock away their savings for an extended period. Following the Global Financial Crisis, these ten-year terms were withdrawn.

How can I work out how much interest I’ll earn on my term deposit?

You can use Savvy’s term deposit calculator to help you work out exactly how much interest your savings will earn over a set period. Just enter in the amount you wish to deposit, the term of the deposit and the interest rate offered, and the calculator will show you how much interest your savings will earn.