Product details
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.
Knowing exactly how much interest you'll earn with a Bank Australia term deposit allows you to plan for a future expense or savings goal, no matter how big or how small it may be.
- Product Name
- Bank Australia Term Deposit Account
- 3 month interest rate
- 1.15%
- 4 month interest rate
- 1.15%
- 6 month interest rate
- 1.55%
- 9 month interest rate
- 1.75%
- 12 month interest rate
- 1.85%
- 24 month interest rate
- 2.15%
- 36 month interest rate
- 2.35%
- Min Deposit
- $500
- Minimum Age Requirement
- 13
Interest rate offer: 2.80% for 6 months
If you open a 6 month term deposit online with Bank Australia and deposit more than $5000, you'll receive a special fixed interest rate of 2.80% for the life of the term. This offer is for a limited time only. Full T&Cs are available on Bank Australia's site.
What are the features of the Bank Australia Term Deposit Account?
Compare the following features of a Bank Australia term deposit with other term deposits in the market:
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.
Earn up to $500.
The interest on the term deposit is fixed at a competitive rate that increases with the amount of money you invest and the length of the terms. For the base deposit amount up to $4999, you can earn up to $500 when you lock your money away for 3 years.
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.
Pros
- Investments are safe and secure
- There is an unlimited maximum balance for this account
- A special term deposit is offered to interested applicants which holds a higher rate
Cons
- Minimum investment of $500
- Fees apply for early withdrawal prior to maturity date
How do I apply for a Bank Australia Term Deposit Account?
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.
Once your membership application has been accepted and transaction account activated, you can begin your term deposit by transferring your deposit into the account.
