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Bank Australia Term Deposits

Name: Bank Australia Term Deposits
Creator: Savvy
Published: 2022-09-12T10:51:33+09:30

Explore Bank Australia term deposit offers and interest rates to help you compare your options with Savvy.

Written by , updated on September 11th, 2023

Bank Australia is the result of the merger of more than 70 credit unions and co-ops since its beginnings in Australia in the 1950s. It holds the title of Australia’s first customer-owned bank and is based in Victoria.

It now boasts more than 180,000 customers, 400 staff and 16 branches across the country. The bank prides itself on being a ‘clean money’ institution through ethical investing and vowing never to invest in fossil fuels, arms, live animal exports, tobacco or gambling products.

Find out if Bank Australia is the right choice for your term deposit by comparing the interest rates and terms on offer here with Savvy. See how their rates compare with other banks and financial institutions to help you determine if they’re the best option available for your precious nest-egg.

*Please note that Savvy does not represent Bank Australia for its term deposit products.

Bank Australia term deposits explained

What term deposits does Bank Australia offer?

Bank Australia offers a limited range of term deposits from three months up to three years.

Bank Australia term deposit interest rates

Term lengths	Interest rates
3 months	1.25% p.a.
4 to 5 months	1.00% p.a.
6 months	2.25% p.a.
7 months	2.00% p.a.
9 months	2.75% p.a.
12 to 18 months	3.25% p.a.
19 to 24 months	3.35% p.a.
36 months	3.50% p.a.

(Effective 14 September 2022)

Interest payment alternatives

The interest rates quoted are for interest paid at the maturity of the term deposit. If you wish to receive your interest monthly, the interest rate you'll receive will be marginally lower than the advertised rates above.

Limits on investment sum

The minimum amount for a term deposit is $500 and the maximum amount permitted is $1 million. However, investments over $1 million are available by personal negotiation.

Notice required for early withdrawal

If you wish to withdraw your savings before the agreed maturity date, you’ll be required to give 31 days’ notice of your withdrawal intent.

How do I open a Bank Australia term deposit?

You can open a term deposit with Bank Australia either online, over the phone or in person at one of their branches. The online application process will take less than five minutes, but you will need your driver’s licence, Medicare card and passport handy for the process.

What are the requirements for opening a Bank Australia term deposit?

The requirements for opening a Bank Australia term deposit are:

Must be at least 13 years of age
Must live in Australia, either permanently or on a visa
Must have a minimum investment of $500
Be able to prove your identity through your passport, driver’s licence and Medicare card

The pros and cons of Bank Australia term deposits

PROS

Low minimum deposit requirement

The minimum amount required for a term deposit is $500, which is a far smaller sum than the usual $1,000 to $5,000 usually required for a term deposit

Competitive interest rates

Whilst not offering the highest possible interest, the term deposit rates on offer are very comparable with similar-sized financial institutions.

Term deposits for children available

Term deposits are available for children aged from 13 years upwards. Bank Australia is one of just a handful of financial institutions offering term deposits for kids.

CONS

No guarantee of early withdrawal

Australian Unity’s conditions state that early withdrawal of funds for term deposits under two years where interest is paid at maturity is at the discretion of the bank.

Limited interest payment options

The only options for payment of interest are at maturity or monthly (for a limited term selection). There are no options to have your interest paid quarterly or half-yearly.

Limited terms available

Bank Australia doesn’t offer the full range of terms for either short-term or long-term investing of savings, so you’ll have to look elsewhere for five-year deposits.

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 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 do I find the best high-interest term deposit?

To find the best high-interest term deposit, it’s necessary to compare the term deposits offered by a wide variety of financial institutions. Luckily, Savvy takes the hard work out of comparing and finding the best high-interest term deposit. We offer clear and accurate comparison information so you can see at a glance which institutions offer the highest rates and best deals available in Australia for your savings.

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.