With a minimum of $5,000 and a fixed interest rate scaled to its maturity date, you can make a savings plan that helps you achieve your financial goals. This is a fee free term deposit locks your money away, helping you to resist the urge spend your savings.
With Netbank you can keep track of your term deposit and all your other CommBank products.
What are the features of the Commonwealth Bank Term Deposit?
Compare the features you get with Commonwealth Bank’s term deposit with those of other Australian financial institutions before making a final choice on how you will invest your excess funds:
- Monthly fees. You will not be charged any set up costs or monthly fees by CommBank for their term deposit.
- Interest rates. The interest rates for the term deposit are fixed and tiered, with higher terms yielding you a better return on your investment.
- Special offer. New CommBank customers can choose a term deposit ranging from four months to one year and receive a competitive rate of interest that is compounded. This offer is only available online.
- Length of terms. The terms you can choose from range from one month to five years.
- Interest payments. The interest on the balance is calculated daily and will either be paid into the account once a year or when the terms reach maturity.
- Minimum investment. You are required to make a minimum investment of at least $5,000 but it may not exceed $2 million.
- Early withdrawal. If you need to end your terms early, you must give CommBank at least 31 days notice of your intent. This will result in an adjustment of the interest to match the new terms, along with an administration fee.
- Terms renewal. You are given seven days after the account reaches maturity to either withdraw the money or reinvest it into a new term deposit. If you do decide to withdraw, no interest will be accrued during that seven day period.
- Online banking (NetBank). With CommBank’s NetBank you can view the progress of your term deposit online and let the bank know what you would like to do once the account has reached the end of its terms.
- Alerts. You will be alerted for free with an SMS text, email or NetBank notification when your term deposit hits maturity.
How do I apply for the Commonwealth Bank Term Deposit online?
If the terms of Commonwealth Bank’s term deposit suit your financial needs you can begin your application online by clicking “Go to Site”. There are some eligibility requirements you will need to meet before the bank will consider an online application:
- Minimum age. If applying online you must be at least 18 years old. Younger individuals who wish to open a term deposit will need to visit a Commonwealth Bank branch.
- Residency requirements. You will need to be able to provide proof that you are currently residing in Australia.
- Depository requirements. A minimum deposit of $5,000 is required to open a term deposit account.
In addition, the application will require information from the following documentation before it can be opened:
- Tax file number. Your tax file number (TFN) or TFN exemption is not compulsory, but if you do not provide it, CommBank is obligated to deduct tax from the interest earned at the highest marginal rate.
- Identification. If the bank is unable to confirm your identity online using your passport, driver’s licence or Medicare card you will have to complete the identity verification in person at a branch.
- Account number. When applying online you will need to be able to provide an existing CommBank account number or other personal banking account. This account will be used to transfer the deposit needed to open the account as well as receive interest payments if you choose to have those paid out.
After submitting your application CommBank will make the necessary withdraw from your nominated account into your new term deposit, where those funds will begin earning interest.
Am I penalised if I access my term deposit before it matures?
If your funds are only invested for a portion of the agreed term, the interest rate to date will be adjusted by a certain percentage. Please refer to the table below.
|Percentage of time elapsed in your term deposit||Adjustment to be applied as a % of your interest rate|
|0- less than 20%||90%|
|20 to less than 40%||80%|
|40 to less than 60%||60%|
|60 to less than 80%||40%|
|80 to less than 100%||20%|
For example, for half of the agreed term (50%) then the interest rate will be adjusted by 60%. Hypothetically, if you interest rate was 4%, (4% p.a. x 60%) = 1.60% p.a.