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Commonwealth Bank Term Deposits

Name: Commonwealth Bank Term Deposits
Creator: Savvy
Published: 2022-09-23T16:17:19+09:30

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

Written by , updated on September 11th, 2023

The Commonwealth Bank of Australia (CBA or CommBank, as it is most commonly known), was founded by the Australian Government more than a century ago. It was listed on the stock exchange in 1991 and fully privatised by 1996.

Over the past century, it has grown to become the largest of Australia’s big four banks, with almost 875 branches across the country, 49,000 employees, 800,000 shareholders and about 16 million customers. CBA now also owns Bankwest, Colonial First State Investment and the ASB Bank in New Zealand.

Find out if a CBA term deposit is the best place to invest your savings. Compare interest rates and terms with other banks, and then start your investment journey today here with Savvy.

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

Commonwealth Bank term deposits explained

What term deposits does Commonwealth Bank offer?

CBA offers just about every term deposit you could imagine, having a wide range of term deposits available. It also offers a tiered interest system, with higher interest rates on offer for larger sums deposited.

CommBank: common interest rates on offer

Term length offered	Interest Rate $5,000 to $49,999	Interest rate $50,000 to $2 million
1 month	0.45% p.a.	0.50% p.a.
2 months	0.55% p.a.	0.60% p.a.
3 months	0.70% p.a.	0.75% p.a.
6 months	1.20% p.a.	1.25% p.a.
9 months	1.45% p.a.	1.50% p.a.
12 to 17 months	1.95% p.a.	2.00% p.a.
18 to 23 months	2.05% p.a.	2.05% p.a.
24 to 47 months	2.20% p.a.	2.25% p.a.
48 to 60 months	2.45% p.a.	2.50% p.a.
Special offer: 18 months	3.00% p.a.	3.00% p.a.

(Effective 23 September 2022)

All interest rates are quoted for deposits with interest paid either at maturity or annually. Lower interest rates are paid if interest is paid monthly or half-yearly.

Minimum and maximum deposit amounts

The minimum deposit required is $5,000 and the maximum permitted is $2 million. Larger investments are available by personal negotiation.

Early withdrawal penalties

If you wish to withdraw your term deposit funds early, the amount of interest you’ll earn will be reduced on a sliding scale, depending on how much of your original term there is remaining. You will also be charged a prepayment administration fee of $30 if you choose to withdraw your funds early.

Early withdrawal notice period

You’ll need to give 31 days’ notice for early withdrawal of your term deposit funds.

Fund holding facility

Unlike other banks which automatically renew your term deposit for an identical term if no other instructions are received upon maturity, CommBank places those funds into a holding account earning an interest rate of 0.15% p.a. Funds are reinvested every seven days until instructions are received as to what to do with them.

You can opt to receive an email, SMS or NetBank notification prior to the maturity of your deposit.

Business and SMSF term deposit accounts

A full range of term deposits is available for self-managed super funds, trusts and business customers, with interest rates very similar to those offered for private investments.

Farm management deposits

CommBank also offers the option of farm management deposits. Eligible primary producers can set aside pre-tax income in good years and use it as a cash reserve when times get tough. Income tax is only payable when the funds are withdrawn from the management deposit. Conditions include:

Fixed terms from three months up to two years
A minimum deposit of 12 months is necessary to get the tax benefits described above
Deposit amounts from $1,000 up to $800,000

Interest rates vary according to the term length, but are generally lower than the rates quoted above

How do I open a Commonwealth Bank term deposit?

If you’re an existing CBA customer, you will be able to open a term deposit through your existing Netbank account number and online banking. Just use your usual login details.

If you are new to CBA, you can open a term deposit once you’ve opened a transaction or savings account with the bank. You can either do this at a branch, over the phone or by following the online prompts to open an account. You will need to provide proof of your ID, so make sure you have your passport and driver’s licence handy when opening your initial account.

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

The requirements for opening a term deposit with Commonwealth Bank are as follows:

You’ll need to be over 18 years of age
You’ll need to have an Australian residential address
You’ll need an existing NetBank ID and CommBank account in your name
You’ll need to provide your tax file number so that withholding tax can be calculated accurately

The pros and cons of CBA term deposits

PROS

All needs catered for

CommBank offers a wide range of deposit options including options for businesses, trusts, SMSFs and farm management deposits for farmers.

Wide range of terms available

CBA offers term deposits from one month right up to five years, so whatever your investment needs, you should be able to find a term to match perfectly.

Holding facility

If you haven’t given CommBank instructions on what to do with your funds at the end of your term deposit, they will be placed in a holding facility earning some interest until instructions are received.

CONS

Lower interest rates

Australia’s largest bank does not offer the highest interest rates in the country and, in general, their rates are lower than many other online banks and building societies.

Fee for early withdrawal

A $30 early withdrawal administration fee is charged if you do choose to withdraw your funds prior to the expected maturation date of your term deposit.

Interest must be paid into a CommBank account

The interest you earn can either be paid into your term deposit or another CommBank account, but can’t be paid to another bank account with a different financial institution.