Bank Australia Term Deposits

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If you’re looking for a way to invest money for a set period at a fixed interest rate, then you might be interested in learning more about Bank Australia’s term deposits.

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What terms are available on Bank Australia term deposits?

According to Bank Australia, it offers term deposits with terms (the length of time your money is deposited) ranging from three months to three years.

You can use Canstar’s term deposit calculator to help you work out what term length might be suitable for you. One factor to consider is that longer terms typically come with higher interest rates, but you would have to wait longer to benefit from the higher interest rate that can come with reaching the maturity date.

When deciding on a term deposit, it’s a good idea to carefully consider the length of the investment term, as some products may charge a fee and require a certain notice period if you need to access your money early.

When is interest paid on Bank Australia term deposits?

Bank Australia’s term deposits offer customers the choice of receiving interest payments at the following frequencies:

  • Monthly
  • At maturity (at the end of the term)

It’s worth remembering that the option you select may have an impact on the rate of interest you earn.

Canstar’s term deposit calculator can help you decide how you can maximise the interest paid on your term deposit.

Does Bank Australia have a notice period and charge an early withdrawal fee for withdrawals?

At the time of writing, Bank Australia requires you to provide notice of 31 days if you wish to access your money early. For terms less than two years where interest is paid at maturity, Bank Australia says any request to access funds early is at its discretion.

Bank Australia says if you wish to withdraw your money before the end of the term, fees may apply and there may be an adjustment on the interest you have accrued. For example, according to Bank Australia, if the term deposit is held for 80% of the original term, 80% of the accrued interest on the amount withdrawn will be paid.

Bank Australia’s website and Product Disclosure Statement provide more information on any interest adjustments or other early withdrawal penalties that may apply.

Does Bank Australia charge any other fees for term deposits?

At the time of writing, Bank Australia charges no account keeping fees to those who hold a term deposit account.

For current information on fees and how they apply, please check the Product Disclosure Statement or contact Bank Australia.

How to apply for a Bank Australia term deposit

Before applying for a Bank Australia term deposit, aim to first compare it against other term deposits on the market to ensure it is the right one for you.

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If applying, consider Bank Australia’s eligibility criteria (below) and what you might need to have on hand, such as:

  • Your TFN (Tax File Number)
  • Proof of ID, such as your driver’s licence or passport
  • Personal details, including your residential address, contact information and potentially information on your current job

If you’re applying for a term deposit on behalf of a business, self-managed super fund or other type of entity or organisation, you may need to supply different documents to those listed above. The terms and conditions that apply to your term deposit may be slightly different.

To see if you can apply online for a Bank Australia term deposit, just check to see if ‘apply online’ is ticked in Canstar’s term deposit tables and visit Bank Australia’s website.

Eligibility criteria

According to Bank Australia, when applying for a term deposit, you will need to meet the following eligibility criteria:

  • You must be an Australian tax resident
  • You must be at least 18 years old
  • You must be investing a minimum deposit of $500 (higher deposit amounts may apply in order to be eligible for some of Bank Australia’s term deposit products and particular interest rates on offer)
  • You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)

What happens to a Bank Australia term deposit when it reaches maturity?

According to Bank Australia, written notification of maturity will be given to you prior to the end of the term. Bank Australia says that if no instructions are given, the term deposit will be re-invested for the same term at the advertised interest rate at the date of maturity.

About Bank Australia

Bank Australia was established in 1957, with just 40 members, as the CSIRO Co-operative Credit Society. Since then, it has grown and has joined together 72 credit unions and co-operatives to become Australia’s first customer-owned bank. Bank Australia says it has ‘clean’ money because it’s never loaned to industries such as coal, nuclear weapons, gambling, tobacco and live animal export.

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Written by: Tamika Seeto | Last updated: February 14, 2019