Tyro to launch a term deposit for Australian businesses
Tyro has launched the pilot business term deposit today to existing customers with 30-, 60- or 90-day terms available initially.
Business bank Tyro has today announced it will launch a term deposit product, with the pilot available today to existing customers. The pilot term deposit will be available to Australian businesses with a Tyro bank account, and will initially offer 30-, 60- or 90-day terms for balances starting from $1,000.
Tyro has promised the term deposit will offer competitive fixed interest rates; however, these rates are yet to be revealed.
Tyro received its banking licence from the Australian Prudential Regulation Authority (APRA) in 2015 and has since launched a range of business banking products. The brand is perhaps most well-known for its EFTPOS and point-of-sale payment terminals, which are used by more than 29,000 merchants in Australia. Most of Tyro's business customers operate in the hospitality, retail and healthcare sectors.
As well as EFTPOS terminals, Tyro also offers a fee-free business bank account where merchants can get their EFTPOS takings paid into on a daily basis. It also offers a business loan, enabling customers to borrow up to $120,000.
"With the addition of a term deposit product, Tyro EFTPOS and eCommerce customers can transact and automate payments via the Tyro Bank Account's Xero integration; borrow up to $120,000 via the Tyro Business Loan; and now lock away funds for a set period," said Tyro CEO and managing director Robbie Cooke.
Tyro has had a busy week, including listing on the ASX (TYR:ASX) after a successful IPO and seeing its shares jump almost 30% on day one. Its shares were priced at $2.75 each through the IPO to institutional investors and were trading publicly at around $3.38 each on Tuesday afternoon.
Tyro is a key competitor to challenger bank Judo, which has also been granted its banking licence and offers a range of business lending products to Australian small and medium businesses. Judo Bank is yet to launch a business term deposit; however, it does have a personal term deposit in the market that offers competitive fixed interest rates on deposits from $1,000.