Interest rate 12 months interest rate: Up to 5.50% p.a.
Minimum opening deposit: $500
Account keeping fee: $0

Summary

A term deposit account locks your money away with a fixed interest rate, to help you meet future financial goals.

Bank Australia offers members a flexible term deposit with a competitive fixed interest rate and a minimum deposit amount of just $500. You can choose a term length that suits you, as well as choose how often you'd like to receive your interest payments.

Pros

Investments are safe and secure
A special term deposit is offered to interested applicants which holds a higher rate

Cons

Fees apply for early withdrawal prior to maturity date

Details

Key details

Product Name	Bank Australia Term Deposit Account
3 month interest rate	5.05%
6 month interest rate	5.30%
9 month interest rate	5.10%
12 month interest rate	5.50%
24 month interest rate	5.10%
36 month interest rate	5.00%
Minimum Opening Deposit	$500
Minimum age requirement	13
Government guarantee	Yes

Eligibility

Minimum Age Requirement	13
Joint account availability	Yes
Min Deposit	$500
Available to children	Not available for children under 13 years of age

Key features

No monthly account-keeping fees

With Bank Australia you will not be charged any setup fees or monthly account-keeping fees on the term deposit.

Minimum investment of just $500

You can invest from as low as $500 into a Bank Australia term deposit so there's no need to wait until you have a larger deposit.

Terms from 3 months to 3 years

You can lock you money away from just three months up to three years at a time depending on your financial goals.

How the interest rate works

The interest rate on this term deposit is fixed for your chosen term. The rate varies by term length, not by how much you invest. Compare the rate for each term in the Key details table above to see how much you could earn.

Interest calculated daily and paid when it suits you

Interest is calculated on the daily balance of the account as of the end of the day, meaning you'll benefit from compound interest. You can elect to receive your interest payments monthly into your linked bank account, or at maturity when the term ends.

Linked bank account

You'll need to open a transaction account or savings account with Bank Australia in order to receive your interest payments from your term deposit.

Account accessibility

You can view the progress of your account using Bank Australia's Internet, mobile or phone banking system.

Account maturity options

You will be notified in advance when your term is about to come to an end. It's up to you to provide instructions for whether you wish to continue with a new term deposit at the current rate, or withdraw your funds. If no notice is given, the money will automatically be deposited into a new term deposit for the same length of time, but at the current interest rate which may be lower (or higher!). You are given 14 days after the term deposit has been activated to make changes, deposits or withdrawals without incurring any penalty charges.

31 days' notice required for early withdrawal

If for any reason you need to make a withdrawal of your savings before the term deposit reaches maturity, the request must be made 31 days prior and is subject to approval from Bank Australia. The interest rate will then be adjusted according to the percentage of time the account had left before maturity. For example, if you fulfilled 80% of the selected term, then 80% of the earned interest will be credited to you. Plus, you may be charged a penalty for accessing the funds before the term has reached maturity.

How to apply

If you're not a member of Bank Australia already, you will need to become a member at the same time that you open your account online. You'll also be able to open a new Bank Australia transaction account at the time of applications, which you'll need to receive your interest payments from your term deposit. Before you start the application process, check the following eligibility requirements.

Eligibility

Minimum age. In order to begin your application online you must be at least 13 years of age.
Residency requirements. Only an Australian citizen or resident can become a member of Bank Australia.

Depository requirements. The minimum deposit for the term deposit is $500, but there could be additional requirements depending on the transaction account you choose.

Documentation needed

Tax file number. Your tax file number (TFN) is used to ensure that the withholding tax on your interest earnings is correct.
Identification. Bank Australia can use details from your passport, driver's licence or Medicare card to verify your identity.

What happens after I submit my application?

Once your membership application has been accepted and transaction account activated, you can begin your term deposit by transferring your deposit into the account.

Compare other products from Bank Australia

Sources

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.
1. Bank Australia Term Deposit Account information page
2. Bank Australia Term Deposit Account TMD

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Alison Finder

Editorial Manager, Money

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Thina

October 08, 2026

Could you tell me where there are a branches in Brisbane, Queensland?

Angus Kidman Finder

October 09, 2026

At time of writing, Bank Australia has branches in West End and Ascot.

Branch?

January 20, 2026

Can I open a term deposit with Bank Australia in person. If so where are their branches in Melbourne? What do I need to bring with me?

Sarah Megginson Finder

January 22, 2026

Yes, Bank Australia has 4 branches you can visit in the Melbourne CBD, Kew, Fitzroy and Niddrie. You’ll need to bring proof of ID such as licence, passport and Medicare card. You can reach them on 132 888 if you have further questions. Hope this helps!

Phillip

November 23, 2025

What’s Fixed Deposit for 6mo on 500,000

Alison Banney Finder

November 27, 2025

Hi,

Bank Australia currently offers 4.25% p.a. fixed rate for 6 month terms on balances between $500 and $3 million.

Thanks,

Alison

Beryl

September 13, 2023

Is the Bank of Australia guranteed by the government scheme?

Alison Banney Finder

September 14, 2023

Hi Beryl, yes it is.

Jenni

July 21, 2023

If my 14yr-old opens a Term Deposit that earns more than $416 interest in the year, and they don’t have a TFN, what will happen?

Alison Banney Finder

August 01, 2023

Hi Jenni, we recommend you speak with a tax accountant about this who can give you personalised tax advice. Thanks.

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full profile

Bank Australia Term Deposit Account

Pros

Cons

Key features

No monthly account-keeping fees

Minimum investment of just $500

Terms from 3 months to 3 years

How the interest rate works

Interest calculated daily and paid when it suits you

Linked bank account

Account accessibility

Account maturity options

31 days' notice required for early withdrawal

How to apply

Eligibility

Documentation needed

What happens after I submit my application?

Compare other products from Bank Australia

Sources

Sources

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