UniBank Term Deposits

Unibank

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 UniBank’s term deposits.

What term deposits does UniBank offer?

At the time of writing, UniBank offers one term deposit product. Features include:

  • Minimum deposit of $1,000
  • Higher interest rates available for deposits above $5,000 at the time of writing
  • No account keeping fee
  • Free online and phone banking balance enquiries
  • 24/7 access via internet, mobile app and phone banking
  • Rewards Package members can receive interest at a rate 0.05% higher than regular rates

Compare Term Deposits

What terms are available on UniBank term deposits?

According to UniBank, 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 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 UniBank term deposits?

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

  1. Fortnightly (Edvest members only)
  2. Monthly
  3. Annually
  4. At Maturity

Additionally, UniBank says that term deposits lodged for more than 12 months must have interest paid at least every 12 month period as well as 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 UniBank have a notice period and charge an early withdrawal fee for withdrawals?

At the time of writing, UniBank requires you to provide notice of 31 days if you wish to access your money early.

UniBank will reduce the interest payable if you withdraw your money before the end of the term. An adjustment may be required if UniBank pays interest to you prior to you making an early withdrawal. At the time of writing, the reduced rate is currently 2% lower than the rate specified in your Term Deposit Certificate.

UniBank’s website and interest rates flyer provide more information on any interest adjustments or other early withdrawal penalties that may apply.

Does UniBank charge any other fees for term deposits?

At the time of writing, no account-keeping fees apply to UniBank’s Term Deposits. However, in order to apply for a UniBank term deposit you must be a UniBank member (i.e. shareholder). In order to join and become a shareholder, UniBank says you will need to pay $10.

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

How to apply for a UniBank term deposit

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

Compare Term Deposits

If applying, consider UniBank’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 UniBank term deposit, just check to see if ‘apply online’ is ticked in Canstar’s term deposit tables and visit UniBank’s website.

Eligibility criteria

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

  • You must be a UniBank member. Membership is open to current or retired employees, graduates and postgraduates and current students of an Australian University or family members of members.
  • You must be at least 18 years old
  • You must be an Australian resident or permanent resident
  • You must be investing a minimum deposit of $1,000
  • You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)

If you’re 50 years or over, you can qualify for UniBank’s Edvest scheme, which may enable you to get a higher interest rate.

What happens to a UniBank term deposit when it reaches maturity?

According to UniBank, when you open your term deposit you can choose to:

  • Reinvest the same original deposit amount (principal) into a new term deposit for the same term and transfer the interest earned to another account
  • Reinvest the principal and interest together into a new term deposit for the same term
  • Transfer the principal and interest together to another account and close the term deposit

UniBank says you can change these details any time during the term. UniBank will also write to you about one week before your term deposit reaches maturity to confirm your instructions.

About UniBank

UniBank was established in the Chemistry Department at the University of Western Australia in 1964. Unibank says its aim is to give university staff, students, graduates and their families better financial options. UniBank is a member owned mutual bank.

Written by: Tamika Seeto | Last updated: April 26, 2019