RACQ Term Deposits

Explore RACQ 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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The Royal Automobile Club of Queensland (RACQ) is best known as the largest roadside assistance organisation in that state. However, it also offers a range of banking products to the state’s residents, including term deposits. 

The RACQ was formed in 1905 and gained approval to use the word ‘Royal’ from King George V in recognition of the organisation’s contributions to the community during the First World War.  It has since grown to gain 1.7 million members.  

Find out here with Savvy whether the RACQ Bank is an option to help grow your nest-egg. Compare the interest rates and terms offered, and see how they stack up against other financial institutions right here before you open your deposit.

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

RACQ Bank term deposits explained

What term deposits does the RACQ Bank offer?

The RACQ Bank offers term deposits ranging from one month to five years.  Interest is paid either annually if your deposit is longer than one year or at maturity for short term deposits of less than 12 months.  

The interest rates offered by RACQ Bank for their term deposits are as follows:  

RACQ Bank term deposit interest rates 

Term length Interest rate
1 month
0.20% p.a.
2 months
0.80% p.a.
3 to 5 months
1.50% p.a.
6 to 8 months
2.30% p.a.
9 to 11 months
2.75% p.a.
12 months
3.00% p.a.
2 years
3.20% p.a.
3 years
3.40% p.a.
4 years
3.60% p.a.
5 years
3.85% p.a.

(Effective 2 September 2022)

Early withdrawal penalties 

If you wish to withdraw your funds prior to the end of your agreed term, a reduction in your interest rate will apply.  The amount your interest will be reduced is on a sliding scale which depends on how much of your original term is left to run. The percentage reduction in interest offered is as follows: 

  • Up to 25% of term completed: 80% interest reduction 
  • Over 25% to 50% of term completed: 60% interest reduction 
  • Over 50% to 75% of term completed: 40% interest reduction 
  • Over 75% to 99.9% of term completed: 20% interest reduction  

How do I open a RACQ Bank term deposit?

Term deposits can be opened via phone, in-store or via an online enquiry.  If you wish to apply online, you’ll have to take out RACQ membership before being able to open a term deposit. 

You will also need to photograph your ID including your passport and your driver’s licence as part of the application process. 

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

The minimum requirements for opening a RACQ Bank term deposit are: 

  • Minimum term deposit investment of $1,000 
  • Maximum investment up to $1 million (or more by special arrangement) 
  • Must have a Queensland residential address 
  • For adults aged 18 years and above 
  • Must have a mobile phone number for security verification 
  • Must be an existing RACQ member or take out membership prior to opening a term deposit account

The pros and cons of RACQ Bank term deposits


Competitive interest rates 

The interest rates on offer are amongst the highest available in Australia, particularly for those term deposits over one year

Enjoy additional membership benefits 

All RACQ members also qualify for membership benefits including Woolworths eGift cards, cinema tickets and savings at the petrol pump. 

 Low minimum deposit requirement 

Unlike other banks which have a minimum deposit requirement of $5,000, you can deposit as little as $1,000 with RACQ Bank and still access great interest rates. 


Must be a resident of Queensland 

You must live in Queensland and have a valid QLD address to be able to open a term deposit with the RACQ Bank. 

RACQ Everyday Account also required 

If you wish to open a term deposit, you’ll also need to open an Everyday Account with RACQ and transfer funds into and out of your term deposit from this bank account

Must have RACQ membership 

Additionally, you’re also required to have RACQ membership, which may inconvenience those who already have roadside assistance through their car insurance or other organisations. 

More of your frequently asked questions about term deposits

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. 

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 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.

More term deposit reviews

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