ME Bank Term Deposits

Explore ME 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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ME Bank (formerly Members Equity Bank) is an online-only bank which was founded in 1994 to service the needs of industry super fund members. This followed a push by the Australian Council of Trade Unions (ACTU) to find an alternative to Australia’s big four banks.

In 2001, ME secured its banking licence and began offering low-cost retail banking and savings products. It shortened its name to ME in 2015 and was purchased by the Bank of Queensland in July 2021 for $1.325 billion. It now has more than 550,00 customers and 1,800 employees.

If you’re considering a ME term deposit, you can find out more about the term deposits on offer and compare your options right here with Savvy. Make sure ME offers the right type of deposit for your personal needs.

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

ME Bank term deposits explained

What term deposits does ME offer?

ME offers a variety of term deposits ranging from one month to 60 months. Their minimum deposit is $5,000 and the maximum is $2 million. There are no set-up or ongoing account-keeping fees. They also offer term deposits for businesses and self-managed super funds (known as SMSF term deposits).

ME Bank: common term deposit rates

Term length Interest rate
1 month
0.15% p.a.
3 months
1.5% p.a.
6 months
2.70% p.a.
9 months
3.00% p.a.
12 to 23 months
3.50% p.a.
24 to 60 months
3.25% p.a.

(Effective 31 August 2022)

The bank awards different interest rates according to how frequently interest is paid on your term deposit. The above rates are based on interest paid either annually or at maturity, which is the highest bracket of rates (all rates up to 12 months can be paid at maturity). These rates are, on average, 0.05% p.a. higher than those terms where interest is paid monthly. For example, a six-month term deposit with interest paid monthly may attract a rate of 2.65% p.a. However, if interest is paid at maturity, this rate would instead be 2.70% p.a.

The interest rates offered by the bank for fixed short-term deposits under 12 months encourage certain set periods, with rates on three, six and nine-month deposits considerably higher than those of four, five, seven or eight months.

Longer-term deposit interest rates (over 12 months) peak at 24 months but are slightly lower for terms over 24 months. Therefore, in summary, to get the highest possible fixed interest rate with ME:

  • opt for a term deposit of three, six or nine months or one between 12 and 23 months.
  • opt to get your interest paid annually or at maturity

A review of the interest rates on term deposits offered to businesses and SMSFs shows term deposit interest rates are the same as those offered to retail customers.

How do I open a ME term deposit?

To open an ME term deposit, you’ll first have to be a bank customer. To register as a customer, you’ll need to go to the ME Bank website and fill out an application form. As part of this application process, you’ll need to show 100 points of ID to prove your identity to satisfy Australian Government Know Your Customer (KYC) banking regulations. Documents which will satisfy this requirement include:

  • passport and driver’s licence
  • passport and one other form of government-issued ID which shows your photograph, such as a student ID card or government identity card

Once you’ve registered as a bank customer and have your customer ID number and password set up, you’ll be able to log in, go online and open a term deposit.

You’ll be able to fund your term deposit with money from an account with another bank, so you don’t necessarily have to open a standard bank account with ME to open a term deposit.

What are the requirements for opening a ME term deposit?

To open a term deposit with ME, you’ll need to:

  • be aged at least 12 years of age
  • be either an Australian citizen, permanent resident or resident for tax purposes
  • offer sufficient proof of identity
  • have a minimum of $5,000 to deposit
  • be able to submit an application online

The pros and cons of ME term deposits


Competitive term deposit interest rates

The interest rates offered by ME are on par with other online banks but aren’t the highest possible rates you can receive in Australia.

No fees to open a term deposit

ME doesn’t charge any fees at all to either open an account or set up a term deposit. There aren’t any account-keeping or ongoing fees charged either.

Wide range of terms to choose from

ME offers a good range of term deposits, although their interest rates are strongly skewed towards preferred deposit set terms.


$5,000 minimum deposit

You’ll need to have at least $5,000 to invest in a term deposit as this is the minimum term deposit sum permitted by ME.

31 days’ notice for early withdrawal

If you need to withdraw your funds before your deposit's maturity, you’ll be required to give 31 days’ notice of your intent to terminate early. You’ll also lose a portion of the interest you would have earned.

No partial withdrawals in an emergency

ME does not allow partial withdrawal of funds in an emergency. You either have to withdraw all or none of your minimum $5,000 deposit.

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 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. 

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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