Bank of Melbourne Term Deposits

Explore Bank of Melbourne’s term deposit offers and interest rates to help you compare your options with Savvy.

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, updated on September 11th, 2023       

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The Bank of Melbourne was originally founded in 1989 by the RESI Statewide Building Society. It bought Challenge Bank in 1996, before itself being purchased by Westpac Bank in 1997.  

Westpac dropped the Bank of Melbourne name in 2004, before relaunching it in 2011 with much of the infrastructure and staff of the newly-acquired St.George Bank. Since then, it’s grown to have more than 1,000 employees across 85 branches. 

Discover if a Bank of Melbourne term deposit is the right place to park your savings by comparing interest rates and terms right here with Savvy. Find the best interest rate for your savings and begin your investment journey today. 

*Please note that Savvy does not represent the Bank of Melbourne for its term deposit products. 

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Bank of Melbourne term deposits explained

What term deposits does Bank of Melbourne offer?

The Bank of Melbourne offers the widest range of term deposits as can be expected from a bank within the Westpac stable. 

Bank of Melbourne: common term interest rates

Term length offered Interest rate (paid at maturity)
Up to 2 months
0.20% p.a.
3 to less than 4 months
0.35% p.a.
6 to less than 7 months
0.80% p.a.
9 to less than 10 months
1.00% p.a.
11 to less than 24 months
1.10% p.a.
24 to less than 36 months
1.50% p.a.
36 to less than 48 months
1.75% p.a.
48 to less than 60 months
2.00% p.a.
60 months
2.25% p.a.
Special offer: 12 to 23 months
3.65% p.a.

(Effective 14 September 2022)

Bonus interest rate to renew online 

An additional 0.10% p.a. is added to the interest rate if the term deposit is opened or renewed online. This offer is only open to personal and business customers for deposits from $1,000 to $5 million. 

Interest frequency  

Interest can be paid either monthly, half-yearly or at maturity. The interest can be paid either into a Bank of Melbourne account or another bank account of your choosing. The interest rates on offer don’t change with payment frequency, which is unlike many other banks which reduce their interest rate if interest is paid more often. 

Notice required to withdraw funds early 

If you wish to withdraw your funds early, 31 days’ notice is required. A reduction in interest will occur if you withdraw your funds early based on a sliding scale related to how much of your original term is remaining. This ranges from a 20% to 90% reduction depending on how far into your term you are.

How do I open a Bank of Melbourne term deposit?

If you’re an existing Bank of Melbourne customer, term deposits can be opened either through your standard internet banking or on the Bank of Melbourne mobile app. 

However, if you aren’t an existing Bank of Melbourne customer, you can register to open a term deposit account online or in a branch. From there, you can download the mobile app to continue your transfer of funds into your term deposit account. 

What are the requirements for opening a Bank of Melbourne term deposit?

The requirements for opening a Bank of Melbourne term deposit online are:  

  • You must be an Australian citizen or permanent resident 
  • You’ll need your Australian driver’s licence, passport and Medicare card to open an account 
  • If the account is to be opened for a child aged under 14 years, a parent or guardian will have to be a signatory to the account until the child is old enough to sign for themselves
  • You’ll have to use your customer access number, which will be sent via email, to log into your internet banking

The pros and cons of Bank of Melbourne term deposits


 Wide range of terms available 

Whatever your needs for stashing your savings away, the Bank of Melbourne will probably be able to offer the term you’re after, with offers from one month to five years. 

Term deposits for businesses and SMSFs available   

Businesses and self-managed super funds can open term deposits with the Bank of Melbourne, unlike other smaller banks which don’t cater to these categories of investors.

No fees 

Like many other banks, Bank of Melbourne does not charge fees or include any administration charges to open a term deposit account. 


 Less competitive interest rates

The interest rates offered by Bank of Melbourne are on par with other mid-sized banks, but they aren’t the highest available in Australia.

31 days’ notice required for withdrawal 

If you wish to withdraw your term deposit funds early due to financial hardship, you’ll have to give 31 days’ notice of your intent to end your deposit term before the maturity date. 

No interest paid for termination within 14 days  

If you change your mind within 14 days of opening a term deposit, or wish to terminate your term deposit within 14 days, no interest is paid for that deposit period.

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. 

How does a term deposit work?

A term deposit works by providing a fixed rate of interest for a lump sum that is deposited with a bank or financial institution for a set amount of time. Term deposits are offered for a period of a few weeks up to five years, in which time your savings are locked away so they can’t be touched (except in an emergency or in case of severe financial hardship). The interest earned on your savings can either be paid regularly (so the interest compounds) or at the end of the term as a lump sum. If you opt to receive your interest as a lump sum, you’ll generally be offered a higher rate. 

What are the most common periods for a term deposit?

Since term deposits are designed to lock away a lump sum of savings for a set period, the most common term deposits range from six months up to one year. For this reason, many banks and financial institutions offer some of their highest interest rates for one-year term deposits, as competition for new investments is fierce. 

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.

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