A 9 month term deposit allows you to keep your savings locked away for nine whole months, earning interest at a competitive fixed rate. Unlike a savings account, the interest rate on a term deposit will not change until the term has ended. Finding the best 9 month term deposit rate will help you benefit the most from compound interest.
Learn more about how a 9 month term deposit works and compare term deposit rates in this guide.
Term Deposit Offer
Bank of Sydney Term Deposit Online Exclusive
fixed for 9 months
Term Deposit Offer
$0 monthly account keeping fees. The Online Exclusive Term Deposit by Bank of Sydney offers term lengths from 1 month to 13 months. Withdraw funds before maturity without notice (fees apply).
A term deposit is a type of savings account, except you can't access the money in the account until the term has ended (this is called reaching maturity). You can choose how long you'd like to lock your money away in a term deposit, with terms from as little as one month to five years.
Term deposits offer a fixed interest rate, meaning if you opt for a 9 month term deposit the rate will not change until the end of the term. Savings accounts on the other hand offer variable rates meaning the rate can change at any time. If you do need to access the money in your 9 month term deposit you'll need to give at least 31 days' notice and will likely pay a penalty. Because of this, a term deposit provides a great incentive to save.
Term deposits often give you the choice as to how you'd like to receive your interest payments. Some 9 month term deposits will allow you to receive your interest payments monthly while others might only give you the option of receiving the interest when the term matures. You can select which Australian bank account you'd like to receive interest payments into. Some financial institutions will only pay your interest into a linked bank account with the same financial institution, so be sure to consider this when comparing term deposit accounts.
How do I compare 9 month term deposits?
Once you have decided that the 9-month term deposit option will help meet your savings needs you should compare a range of accounts. Here's a few things to look out for when doing your comparison:
A competitive 9 month interest rate. Interest rates will vary from bank to bank. Compare the rates being offered in order to ensure that you are maximising the amount of interest earned.
A low, minimum balance requirement. Some banks will allow for a term deposit to be opened with as little as $1,000 while with others you are going to need as much as $5,000. Consider what you can afford to not have access to while comparing this feature.
No fees. Like with other savings products, there are typically no account maintenance fees deducted with a 9 month term deposit. However, you should look into the penalty fees to see how much you stand to lose if you do need to make an early withdrawal.
Account type. Term deposits for nine months can be opened traditionally in a bank, or be an online-only account where you make your deposit using a linked transaction account.
Should I open a 9 month term deposit?
If you know that you can live without access to your savings for longer than nine months you may want to consider a longer term deposit, as longer terms generally offer better interest rates. In some cases the difference in interest rate can make a substantial difference in your savings. If you aren't confident you can lock your savings away for nine months without needing to make a withdrawal, perhaps consider a shorter option instead, like a 6-month term deposit.
Is a 9 month term deposit safe?
Your deposit of up to $250,000 is backed by the Australian Government guarantee scheme, making a term deposit a low-risk investment for building your savings.
What happens when my 9 month term deposit matures?
Unless you inform the bank before the account matures that you intend on withdrawing your savings, they will likely roll your money into a new term deposit for nine months, however the interest rate may change. The interest rate offered plays a big role in your return on investment, so it's important you compare term deposit options again before simply allowing your savings to roll over into a new one with the same bank.
Pros and cons of a 9 month term deposit
Competitive interest rates. 9 month term deposits typically apply a competitive interest rate to your account balance.
No fees. There are no maintenance or establishment fees with term deposits.
Extra incentive to save. For some, having their savings in an account where the funds cannot be touched without penalty is the incentive they need to develop good saving habits.
Can't access your money. In the event of an emergency where you needed to use your savings immediately, you might have to wait up to a month before the bank can return your deposit to you.
Some rates aren't competitive. In some cases, you can earn a better rate with a standard savings account than a term deposit.
Did you have these questions about term deposits?
That depends on the financial institution and in some cases the amount of money you are depositing. In some cases it will only be a slight difference, while with some banks you will see a significant difference.
You should have identification documentation so you can prove who you are, for example your driver's licence. These types of accounts are only available to Australian residents with an Australian residential address. Age requirements will vary by bank, but you will find that some will accept applications from Australians as young as 12 years old.
Yes, you are expected to put your savings into the term deposit immediately after the account has been opened.
Shirley Liu is Finder's global program manager. She was previously the publisher for banking and investments and has also written comparisons for energy, money transfers, Uber Eats and many other topics. Shirley has a Master of Commerce and a Bachelor of Media, Journalism and Communications from the University of New South Wales. She is passionate about helping people find the best deal for their needs.
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