Commonwealth Bank Term Deposit

Commonwealth Bank Term Deposit

Min. Opening Deposit

5,000

Account Keeping Fee

0.00

A fixed rate term deposit that allows you to see exactly how much you will earn and when that money will be available.

  • Enjoy the security of a fixed rate
  • No monthly fees
  • Terms from one month to five years available
  • Invest with as little as $5,000

Product details

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.

Product Name
Commonwealth Bank Term Deposit
1 month interest rate
1.50%
3 month interest rate
1.75%
4 month interest rate
1.75%
6 month interest rate
1.75%
9 month interest rate
1.80%
12 month interest rate
1.90%
24 month interest rate
1.90%
36 month interest rate
1.90%
48 month interest rate
1.90%
60 month interest rate
1.90%
Min Deposit
$5,000
Joint Application
Yes
Minimum Age Requirement
18
Covered by Government Guarantee
Yes (Up to $250,000 per person, per institution)

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.

No monthly fees

You will not be charged any set up costs or monthly fees by CommBank for their term deposit.

Fixed 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 for new customers

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.

A range of term lengths to choose from

The terms you can choose from range from one month to five years.

How is the interest calculated and paid?

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 required

You are required to make a minimum investment of at least $5,000 but it may not exceed $2 million.

31-day notice required for 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.

Choice to renew the term

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.

Alert options and services

You will be alerted for free with an SMS text, email or NetBank notification when your term deposit hits maturity.

Compare more CommBank products

Launch term deposit calculator

Pros

  • $0 Account keeping fees
  • Wide ranges of terms from from 1 month to 5 years

Cons

  • 31 days advance notice required in case of withdrawing funds before maturity
  • Minimum investment of $5,000

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.

Eligibility to apply online

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.

Documentation for your online application

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.

What happens after I've submitted my application online?

After submitting your application CommBank will make the necessary withdrawal from your nominated account into your new term deposit, where those funds will begin earning interest.

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.

 

 

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10 Responses

  1. Default Gravatar
    RossMay 16, 2017

    I desperately need to access my term deposit as work died off but bank saying 31 days but I need now. Is it possible with commonwealth bank

    • Staff
      AnndyMay 16, 2017Staff

      Hi Ross,

      Thanks for your question.

      Commonwealth Bank also requires at least 31 days notice in case you want to terminate your term deposit account earlier. You may have to directly get in touch with them if you want to negotiate getting your term deposit.

      Cheers,
      Anndy

  2. Default Gravatar
    AApril 17, 2017

    Is the interest earned with Cba’s term deposit calculated using compound or simple interest?

    • Staff
      HaroldApril 18, 2017Staff

      Hi Ariel,

      Thank you for your inquiry.

      With Commonwealth Bank Term Deposit the rate displayed is interest rates paid at maturity only. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide. In line with this, new 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.

      I hope this information has helped.

      Cheers,
      Harold

    • Default Gravatar
      AApril 22, 2017

      Hi Harold,

      Thanks for your reply. I am aware that Commonwealth Bank Term Deposit the rate displayed is interest rates paid at maturity only and they are only available online, however I wanted to verify how the interest is calculated.

      E.g. which formula does CBA use?
      Simple interest = amount invested x rate % per annum x number of days/365
      or
      Compound interest = amount invested (1 + rate per annum/payment freq )^ (payment freq x number of days/365)

      According to your general information pdf, it states the formula used to calculate interest is using simple interest on page 9. But what confuses me is the section on page 5 about the interest payment option: what’s the difference between: 4 weekly – to nominated account; and compounded 4 weekly – to term deposit?

      Wouldn’t the word ‘compound’ mean the interest calculated uses compound interest than simple interest for term deposits?

      Let me know!
      Cheers,
      Ariel

    • Staff
      HaroldMay 8, 2017Staff

      Hi Ariel,

      All Commonwealth Bank term deposits are calculated with compound interest, the simple interest formula in the terms and condition refer to how it’s calculated daily. In terms of the “4 weekly” phrase that’s allowed the user to determine if it’s paid into a nominated bank account or reinvested into the term deposit.

      I hope this information has helped.

      Cheers,
      Harold

  3. Default Gravatar
    reginaFebruary 16, 2017

    Are interest rates in a term deposit about to raise?

    • Staff
      MayFebruary 16, 2017Staff

      Hi Regina,

      Thank you for your question and for contacting finder.com.au – we financial comparison website and general information service designed to help consumers make better decisions. Please note that we are not affiliated with any company we feature on our site.

      The interest rates for the term deposit are fixed and tiered, if these will be increased or not, that will depend on CBA’s discretion. If you want to know if they would raise it in the near future, you may get in touch with CBA directly to confirm.

      Cheers,
      May

  4. Default Gravatar
    AliciaOctober 19, 2016

    If I opened a term deposit account with the minimum required opening deposit of $5000, am I then able to consistently deposit further money, from wages for example, each week for the period I’ve spcified?

    • Staff
      ClarizzaOctober 20, 2016Staff

      Hi Alicia,

      Thanks for your question.

      Term deposits are designed for your money to be ‘locked away’. This means you can’t access it or add more money until the selected term ends. You might want to consider a Notice Saver which allows you to continue to add money as you go. It is one alternative to a term deposit should you wish to access your funds but still want a way to earn interest for a set period of time.

      Hope this helps.

      Clarizza

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