term deposit

Compare term deposits with loyalty bonuses

Get rewarded for your loyalty and earn more interest on your savings balance when you choose a term deposit with a loyalty bonus.

In these uncertain financial times, term deposits are an appealing investment for many. Although they may not be the most glamorous option nor promise the risk of high returns, the security of a guaranteed return on your investment offers maximum peace of mind.

If you’re shopping around for a term deposit account to help grow your savings, you might want to consider an account that offers a loyalty bonus. Term deposits with loyalty bonuses offer a bonus interest rate if, when your term deposit matures, you elect to invest your full deposit amount for another term.

Which banks offer term deposits with loyalty bonuses?

Rates last updated October 25th, 2016
3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. 48 Mths p.a. 60 Mths p.a. Min Deposit Interest Earned
RaboDirect Term Deposit
RaboDirect Term Deposit
2.40% - 2.85% 2.70% 2.90% 3.00% 3.05% 3.30% $1,000 Open More
ING DIRECT Term Deposit
ING DIRECT Term Deposit
2.10% 2.60% 2.30% 3.00% 2.70% - - - $10,000 More

Term deposits are an extremely popular type of investment account and are offered by banks, credit unions and building societies all over the country. Although the terms and conditions of the term deposits they offer may change at any given time, loyalty bonuses are not a common feature on these types of accounts.

Instead, they’re usually offered on the term deposit accounts of online-only banks. You can see the details of some term deposits with loyalty bonuses in the table below:

AccountLoyalty BonusBonus Terms and Conditions
ING Direct Personal Term Deposit0.10% p.a.Available if you roll over your Personal Term Deposit (either for the same term or a different term) and you hold all the funds in your new term deposit until the maturity date.
RaboDirect Term Deposit0.10% p.a.Available when you automatically reinvest your Term Deposit at maturity.
UBank Term Deposit0.10% p.a.Available when you roll over your full deposit (or a larger amount) into another term.

What are term deposits with loyalty bonuses?

A term deposit is a simple type of investment account that allows you to earn interest on your savings balance. Offered by banks, credit unions and building societies across Australia, term deposits allow you to invest money for a fixed term and earn a fixed rate of interest.

This ensures that you receive a guaranteed return on the money you invest. Several financial institutions offer loyalty bonuses with their term deposit accounts to encourage customers to reinvest their money.

These bonuses usually take the form of an additional interest rate on your savings balance when you decide to rollover the funds from a matured term deposit into another term. This bonus interest rate is applied on top of the standard fixed rate that applies to your account, allowing you to earn more interest on your deposit and providing a boost for your savings balance.

What are the advantages and disadvantages of a loyalty bonus?

The advantages

  • You earn a higher interest rate for your loyalty. The main advantage of a loyalty bonus on a term deposit is that you can easily earn a better interest rate on your investment balance, allowing you to enjoy better returns.
  • It’s an incentive to continue saving and reinvest. The enticement of a bonus interest rate can be a great way to encourage people to re-invest their money rather than dipping into their savings balance.


  • It means your funds will be illiquid for longer. As with all term deposits, you will typically incur harsh financial penalties if you wish to access the funds in your term deposit before they mature, while some term deposits won’t allow early withdrawals at all.

What are some traps to avoid?

The main risk with loyalty bonuses and term deposit accounts is failing to do your research and shop around. While it may be tempting to simply roll over your funds into a new term deposit and take advantage of the bonus interest rate on offer, it’s important to remember that the base fixed rate offered by your bank may have changed — although it was competitive when you first invested your money six months or a year ago, it may no longer be the best rate available.

With this in mind, always make sure to shop around rather than simply accepting the loyalty bonus on offer. Even once the bonus interest rate is taken into account, there may be another term deposit out there that can provide a better return. And while switching accounts between financial institutions might seem like a hassle, it could be worth it to ensure that you get the best deal.

How do I compare term deposits with loyalty bonuses?

Consider the following factors when deciding on the right term deposit account for your investment needs:

The loyalty bonus interest rate

Consider the bonus interest rate on offer to see how much it will increase the base rate. This will help you work out which account offers the best deal and how much you will be able to grow your investment balance.

Terms and conditions attached to loyalty bonus

Read the fine print to determine what you need to do to receive the loyalty bonus — for example, do you need to roll over all of your funds into a new term deposit, or only a certain portion of those funds? Do you need to roll over into a deposit with the same term? Also check whether that bonus rate will still apply if you rollover your funds into another deposit when your new account reaches maturity.

Term deposits with loyalty bonuses can help you earn more interest and build a larger savings balance simply by being a loyal customer. Compare the features, terms and conditions of these bonus deals at finder.com.au to find the right account for you.

Shirley Liu

Shirley is finder.com.au's publisher for banking and investments. She is currently studying a Masters in Commerce (Finance) and is the author of hundreds of articles. She is passionate about helping Aussies make an informed decision, save money and find the best deal for their needs.

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