Heritage Bank Term Deposits

Explore Heritage Bank'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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Heritage Bank started life as two separate building societies, Toowoomba Permanent and Darling Downs Building Society, which operated in Queensland in the late 1800s. The two building societies merged in 1981 to form the Heritage Building Society, which changed its name to Heritage Bank in 2011.  

In early 2022, Heritage Bank announced it was merging with People’s Choice Credit Union, which is going ahead in late 2022. This merger will create Australia’s largest customer-owned bank, with total assets of more than $22.5 billion. 

Find out if Heritage Bank is the best place for your savings by comparing interest rates and terms right here with Savvy. Find a term deposit that suits your investment needs then start your savings journey here with Savvy today.

*Please note that Savvy does not represent Heritage Bank for their term deposit products.

Heritage Bank term deposits explained

What term deposits does Heritage Bank offer?

Heritage Bank offers a wide range of term deposits from one month up to five years.  

Heritage Bank term deposit interest rates 

Term length offered Interest Rate Offered
1 month
0.20% p.a.
2 months
0.30% p.a.
3 and 5 months
0.80% p.a.
4 months
1.30% p.a.
6 to 8 months
1.00% p.a.
9 months
2.15% p.a.
10 to 11 months
1.20% p.a.
12 months
2.75% p.a.
24 to 36 months
3.00% p.a.
48 to 60 months
3.25% p.a.

(Effective 12 September 2022)

Interest payment frequency 

The above interest rates apply for interest paid either annually or at maturity. If you wish to receive interest payments more frequently (such as monthly or quarterly), a 0.05% p.a. rate reduction applies. Pensioners and those aged over 55 years who are retired are eligible to receive their interest payments fortnightly with the same reduction in interest of 0.05% p.a. For term deposits of 12 months and longer, interest must be paid at least annually. 

Early withdrawal penalty 

If you wish to break your deposit term and withdraw part or all of your funds early, the interest rate which will be applied to the amount withdrawn will be 0.10% p.a., meaning you’ll be paid a lower rate of interest overall for the time you had that portion of your funds invested. If you’re only withdrawing part of your deposit, the remaining balance must be at least $1,000, otherwise Heritage Bank will treat this as you requesting to withdraw the full sum.  

Early withdrawal notice period 

If you do wish to withdraw your funds early, you’ll be required to give 31 days’ notice of your intent to withdraw. 

Interest paid up front 

For terms up to 12 months, Heritage Bank offers the option of your interest being paid up front at the start of the term, rather than at the end of the term (as is usual with most banks). A 0.05% p.a. reduction in interest will occur if interest is paid in this way. 

How do I open a Heritage Bank term deposit?

If you are an existing Heritage Bank customer, you’ll be able to open a term deposit through the Heritage internet banking site. If you aren’t already a customer, you’ll first need to open either a transaction or savings account online or in person with Heritage Bank to fund your term deposit and receive your interest. A shareholder fee of $1 is also payable when you first join the bank.  

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

The minimum requirements for opening a Heritage Bank term deposit are as follows:  

  • Minimum term deposit is $1,000 
  • Minimum age 18 years 
  • Must be an Australian citizen or permanent resident 
  • Must provide two forms of ID (passport and driver’s licence) plus your Medicare card 
  • Must supply Tax File Number so withholding tax can be calculated accurately 

The pros and cons of Heritage Bank term deposits


Interest available up front 

For terms up to 12 months, the interest earned is available to be paid up front at the beginning of your term, rather than at the end of the term as most banks offer. 

Competitive interest rates for longer deposits 

The interest rates offered for longer term deposits of 12 months or more are highly competitive compared to other mutual banks. 

No maximum deposit limit 

Heritage Bank does not impose a maximum limit on its term deposits, which could offer a good opportunity for those with larger sums to invest. 


 Interest must be paid to a Heritage account 

If you decide to invest with Heritage Bank, you’ll also have to open another transaction or savings account to put money into your term deposit and withdraw it at the end of the term. 

Shorter-term interest rates do not impress 

The interest rates offered for terms of less than six months aren’t as competitive when compared to those offered by other mutual and online banks. 

Notice required for early withdrawal 

If you wish to withdraw your term deposit funds early, you’ll have to give 31 days’ notice of your intent to withdraw (and an interest rate reduction will be applied). 

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 do I find the best short term deposit rates?

The best short term deposit rates for term deposits in Australia are typically offered by online financial institutions, smaller mutual banks and credit unions. This is because mutual banks and credit unions channel all profits back to their members, which means they’re able to offer more attractive interest rates. Online banks also don’t have the overheads of maintaining bricks and mortar branches, so they’re often able to offer very attractive interest rates for short-term savings too. For this reason, it’s important to compare interest rates with Savvy before making your financial investment decision. 

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.

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