Commonwealth Bank Term Deposits
What terms are available on the Commonwealth Bank term deposits?
According to Commonwealth Bank, it offers term deposits with terms (the length of time your money is deposited) ranging from a minimum of one month to a maximum of five years.
You can use Canstar’s term deposit calculator to help you work out what term length might be suitable. One factor to consider is that longer terms typically come with higher interest rates, but you may have to wait longer to benefit from the maximum 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 Commonwealth Bank term deposits?
Commonwealth Bank’s term deposits offer customers the choice of receiving interest payments at the following frequencies:
- At maturity
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 Commonwealth Bank have a notice period and charge an early withdrawal fee for withdrawals?
Commonwealth Bank requires you to provide notice of 31 days if you need to access your money early. Commonwealth Bank says it may charge an early withdrawal fee and an interest rate adjustment if you withdraw your money before the end of the term.
The Commonwealth Bank’s website and Product Disclosure Statement provide more information on any interest adjustments or other early withdrawal penalties that may apply.
Does the Commonwealth Bank charge any other fees for term deposits?
At the time of writing, no additional fees were listed by Commonwealth Bank in relation to its term deposits.
For current information on fees and how they apply, please check the Product Disclosure Statement or contact the Commonwealth Bank.
How to apply for a Commonwealth Bank term deposit
Before applying for a Commonwealth Bank term deposit, aim to first compare it against other term deposits on the market to ensure it is the right one for you.
If applying, consider Commonwealth Bank’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 license or passport
- Personal details, including your residential address, contact information and potentially information on your current job
You must also have an existing NetBank ID, so therefore must be an existing CommBank customer.
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 Commonwealth Bank term deposit, just check to see if ‘apply online’ is ticked in Canstar’s term deposit tables and visit Commonwealth Bank’s website.
According to Commonwealth Bank, when applying for a term deposit, you will need to meet the following eligibility criteria:
- You must be at least 18 years old
- You must be an Australian resident
- You must be investing a minimum deposit of $5,000
- You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)
What happens to a Commonwealth Bank term deposit when it reaches maturity?
According to Commonwealth Bank, when a term deposit reaches the end of its term, you have the option of withdrawing part or all of the deposit, plus any interest earned. You can also reinvest the money under a new term or place it in a holding facility until you decide what to do.
If you don’t provide instructions to Commonwealth Bank at maturity, your money will be placed in the holding facility until you let them know what you want to do. According to Commonwealth Bank, your money will continue to earn a variable interest rate that’s paid weekly.
About Commonwealth Bank
The Commonwealth Bank of Australia (CommBank) was founded in 1911 remains Australia’s largest provider of financial services today.