Bank of Sydney Foreign Currency Term Deposit Review, Rates and Information

Product details

With the Bank of Sydney you can diversify your portfolio by investing in high interest-earning term deposits in various foreign currencies. You can manage your term deposit accounts from anywhere in the world using Bank of Sydney’s online banking system.

The below interest rates are for USD fixed term deposits. Different rates apply for EUR, GBP or NZD.

Product Name: Bank of Sydney Foreign Currency Term Deposit

1 month interest rate: 0.40%

3 month interest rate: 0.60%

6 month interest rate: 0.80%

12 month interest rate: 1.00%

Min Deposit: $5,000

Minimum Age Requirement: 18

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What are the Bank of Sydney Foreign Currency Term Deposit features?

The features offered by Bank of Sydney give you the opportunity to invest the way you want, for as long as you want. When comparing this account to your other options look for that type of flexibility as you study the various features:

Available currencies. Through this term deposit you can choose to invest in US Dollar (USD), Euros (EUR), British Sterling Pound (GBP) or New Zealand dollars (NZD). You will access competitive rates through the Bank of Sydney Treasury in order to secure your term deposit in the currency of your choice.
Term lengths. You can choose to make your investment starting at one month up to one year.
Minimum deposit. You are required to deposit at least $5,000 of whichever currency you choose.
Interest rates. The fixed interest rates are tiered, structured to give you a higher rate of return on larger deposits for longer terms.
Interest calculated. Interest is calculated on the entire balance daily. For the USD and EUR it is based on a year of 360 days, while with the EUR and NZD it is calculated using a 365 day annual calendar.
Interest payment. You will receive your earned interest when the term deposit reaches maturity. The interest earned can be reinvested with your principal into a new term deposit or transferred to another Bank of Sydney account in your name.
Account tracking. You can view the activity in your term deposit through the Bank of Sydney’s internet banking platform.
Availability. Both individuals and business entities are eligible to open the Foreign Currency Term Deposit.
Account keeping fees. You will not be charged and monthly or annual fees when investing with this account.
Early termination. Breaking the terms of this account is left entirely at the discretion of Bank of Sydney. If they do agree expect a reduction in the interest or even the principal depending on reduction in interest rate you incur.
Payment methods. If you decide to receive your funds back at maturity or with an early termination they will be disbursed to you using one of the following methods; cash, transfer to another account or a bank cheque.
Account rollover. You are given the option of rolling your term deposit into a new one at the prevailing interest rate when yours reaches maturity. After your new term begins you are given a seven day grace period to make any changes or withdrawals before the term.

Pros

Diversify your deposits
Available in USD, EUR, GBP and NZD
No account keeping fees

Cons

Minimum $5,000 investment

How do I apply for the Bank of Sydney Foreign Currency Term Deposit?

If possible, you will have to visit your local Bank of Sydney branch in order to apply for the Foreign Currency Term Deposit. If you are unable to attend a Bank of Sydney branch you can visit their website to access and download the application and identification forms for individuals. Make sure that you are able to meet the eligibility requirements for this account before getting started on the application:

Minimum age. You must be at least 18 years of age in order to be able to open this account.
Residency requirements. The Foreign Currency Term Deposit is available for both residents and non-residents of Australia. If you are a non-resident you will be subject to special PAYG tax withholding rules on your interest earnings.
Depository requirements. A minimum of $5,000 of whichever currency you choose must be deposited in order for the account to be activated. You can use Bank of Sydney’s currency exchange to accomplish this.

Filling in the application will be made easier if you have the following documentation readily available:

Tax file number. Australian residents will be asked for their tax file number (TFN) or exemption code in order to ensure that the withholding tax on the interest earnings is calculated at the correct rate. If you are a US tax resident or citizen you are obligated to provide your US taxpayer identification number (TIN).
Identification. Bank of Sydney is obligated by law to verify your identity before opening an account in your name. This will require a primary photo identification document that matches your current likeness. In most cases a driver’s licence or passport will be accepted as your identification document.

After completing and printing the application forms, mail them to the Bank of Sydney offices where they will be reviewed by an account specialist. You will be notified by mail once they have approved the application and opened the account.