What is a Commonwealth Bank locked savings account?
25 July 2022A locked savings account could help you grow your savings. Find out what is on offer from Commonwealth Bank.
What is a locked savings account?
A ‘locked savings account’ is a term that is used to describe an account that you can’t withdraw money from. This could make it harder to dip into your savings and encourage you to grow your account balance.
There are two main types of locked savings accounts:
- Savings accounts with withdrawal conditions. These accounts typically offer you bonus interest each month you add to your savings and make no withdrawals.
- Term deposits. These accounts lock away your money for a set period of time and in return you can earn a fixed rate of interest.
Savings accounts are more flexible than term deposits. With a savings account, you can still access your money as needed but you may earn less interest. With a term deposit, you may need to give notice to withdraw your money, be charged fees and earn less interest if you withdraw your money early.
What is a Commonwealth Bank locked savings account?
Commonwealth Bank offers term deposits, which could be used as locked savings accounts. It currently offers term deposits between one month and five years and you can lock in a fixed rate of return.
If you need to withdraw your money early, Commonwealth Bank says you will need to give 31 days’ notice. You will also be charged a fee and earn a reduced rate of interest.
What savings accounts does Commonwealth Bank offer?
Commonwealth Bank offers two savings accounts: NetBank Saver and GoalSaver. They are not locked savings accounts and you can access your money as needed with no penalties.
NetBank Saver currently offers a promotional interest rate for new customers for the first five months. It then drops to the standard variable rate only.
GoalSaver currently offers a bonus interest rate when you grow your savings balance each month. There are no strict withdrawal restrictions that apply. But the requirement to grow your balance could still be an incentive to not touch your savings.
If you think you’ll need to access your savings, a locked savings account may not be suitable for your needs. You can compare savings accounts with no conditions with Canstar and see some of the highest interest rates on our database.
Cover image source: Africa Studio /Shutterstock.com
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This article was reviewed by our Deputy Editor Sean Callery and Digital Editor Amanda Horswill before it was updated, as part of our fact-checking process.
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