First Option Bank Term Deposits

first option bank

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 First Option Bank’s term deposits.

What term deposits does First Option Bank offer?

At the time of writing, First Option Bank offers two term deposit products:

  • Standard Term Deposit: terms available from three months to two years, minimum deposit of $500, interest paid on maturity, or annually for two-year terms.
  • Regular Income Term Deposit: six, 12 and 24 month terms available, minimum deposit of $25,000, monthly interest payments into your account.

Click below to compare other term deposits on our database, with terms, deposit amounts and interest paid options tailored to your preferences.

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What terms are available on First Option Bank term deposits?

According to First Option Bank, it offers term deposits with terms (the length of time your money is deposited) typically ranging from a minimum of three months to a maximum of two 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 First Option Bank term deposits?

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

  1. At maturity
  2. Annually (on Standard Term Deposits with two-year terms)
  3. Monthly (on Regular Income Term Deposits)

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 may be able to help you decide how you can maximise the interest paid on your term deposit.

Does First Option Bank have a notice period and/or charge an early withdrawal fee for withdrawals?

At the time of writing, First Option Bank does not specify a notice period if you wish to access your money early.

First Option Bank does charge an interest penalty if you withdraw your money before the end of the term. It says interest earned will be calculated from the date of deposit to the date of withdrawal at the prevailing recast rate. First Option Bank says partial redemptions of funds prior to the maturity date are not permitted; the term deposit must be redeemed in full.

First Option Bank’s website and Product Disclosure Statement (PDS) provide more information on any interest rate adjustments or other early withdrawal penalties that may apply.

Does First Option Bank charge any other fees for term deposits?

At the time of writing, First Option Bank does not change any annual or monthly fees on its term deposit products.

For current information on fees and how they apply, please check the PDS or contact First Option Bank.

How to apply for a First Option Bank term deposit

Before applying for a First Option Bank  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 First Option 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 licence, passport or Medicare card
  • Personal details, including your residential address, phone number, email address 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 First Option Bank term deposit, just check to see if ‘apply online’ is ticked in Canstar’s term deposit tables and visit First Option Bank’s website.

Eligibility criteria

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

  • You must be a First Option Bank member (adult members need to purchase a $2 share)
  • You must be investing a minimum deposit of $500 (Standard Term Deposit) or $25,000 (Regular Income Term Deposit)
  • You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)

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

Generally, when a term deposit reaches the end of its term you can either withdraw the funds or reinvest the funds into a new term deposit.

First Option Bank says it will notify you at least 14 days prior to the date of maturity. If no reply is received, First Option Bank says the investment will be reinvested for the same term as the previous term, and the interest rate will be the rate for that term at the time of reinvestment.

About First Option Bank

First Option Bank is a 100% member-owned financial institution. It says it has been providing banking products and services for over 50 years.

Written by: Tamika Seeto | Last updated: June 7, 2019