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.
fixed for 6 months
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:
| Account | Loyalty Bonus | Bonus Terms and Conditions |
|---|---|---|
| Judo Bank Term Deposit | 0.10% p.a | Available when you automatically reinvest your term deposit at maturity. |
| ING Personal Term Deposit | 0.10% 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. |
| Rabobank Online Savings Term Deposit | 0.10% p.a. | Available when you automatically reinvest your Term Deposit at maturity. |
| UBank Term Deposit | 0.10% p.a. | Available when you roll over your full deposit (or a larger amount) into another term. |
| UBank Green Term Deposit | 0.10% p.a. | Available when you choose to open a new term deposit when your first term reaches maturity. |
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.
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.
Consider the following factors when deciding on the right term deposit account for your investment needs:
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.
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.
Check out Finder's review of Judo Bank's Term Deposit for SMSFs.
Lock in a fixed rate on a range of term lengths between 3 months and 3 years for deposits $1000 or more.
Australian Unity Term Deposit offers you a wide choice of term lengths for your investment, with a fixed rate of return on your money.
Earn a competitive interest rate on terms between 1 month and 2 years with a Heartland Bank term deposit.
If you struggle to save, you could benefit from a savings account that won’t allow you to withdraw funds.
With high interest rates offered in a variety of different terms, the AMP term deposit could be ideal for both short and long term saving goals.
When can you expect term deposit interest rates to increase? Find out in this handy guide.
When your term deposit matures it's time to decide the next move for your money. Here are your options, including term deposit rollover (tdr).
Set your own terms and conditions for how your money grows with a flexible investment account that rewards you with higher interest earnings.
Australian Military Bank’s Investment Plus term deposit lets your money earn competitive interest. You can choose a term as per your liking.