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Great Southern Bank Term Deposits

Name: Great Southern Bank Term Deposits
Creator: Savvy
Published: 2022-09-02T15:38:35+09:30

Explore Great Southern Bank's term deposit offers and interest rates to help you compare your options with Savvy.

Written by , updated on September 11th, 2023

Great Southern Bank (formerly Credit Union Australia or CUA) can trace its roots to the amalgamation of several small credit unions based in Queensland in the 1940s. It changed its name to the Great Southern Bank in 2021.

Since that time, it has grown to become Australia’s largest mutual bank. It now has over 5,500 members and more than $18.8 billion in assets. The bank operates over 60 branches and has earned a reputation for offering very competitive interest rates on its retail banking products.

Find out with Savvy whether Great Southern Bank is the best choice to house your spare cash. Compare term deposit interest rates and see how it stacks up against other banks in Australia right here with us today before opening your deposit.

*Please note that Savvy does not represent Great Southern Bank for their term deposit products.

Great Southern Bank term deposits explained

What term deposits does Great Southern Bank offer?

Great Southern Bank offers term deposits ranging from one month up to five years. Their most common interest rates are:

Great Southern Bank: common term deposit interest rates

Term length	Interest rate
1 month	0.60% p.a.
3 months	1.50% p.a.
6 months	2.50% p.a.
9 months	2.70% p.a.
12 months	3.00% p.a.
2 years	3.30% p.a.
3 years	3.40% p.a.
5 years	3.60% p.a.

(Effective 31 August 2022)

Interest is paid either monthly, annually or at maturity. Some of these rates are highly competitive, whilst those for more short term deposits aren’t such a great deal. For this reason, it’s important to compare interest rates with Savvy prior to investing.

Platinum Plus Club Membership

Higher interest rates (0.05% to 0.10% p.a. more than those above on average) are available for Platinum Plus Club members. To be eligible to become a member of this club, you will need to be aged 55 years or over or to be a Trust or SMSF where the main trustee is aged over 55 years. There are no application fees or ongoing administration fees for this club.

Grace period

There’s a 14-day grace period after the maturation of the term in which you can give the bank instructions about what you wish to do with your funds. Your options are:

Reinvest your funds for another specified term
Reinvest for another term and increase the amount you deposit
Have your funds and interest earned paid into another Great Southern bank account, which must be in the exact same name as the term deposit account

Early withdrawal

If you need to withdraw your funds early, an interest adjustment will be applied. This means the amount of interest you’ll receive on your deposit will be reduced on a sliding scale according to how early you wish to withdraw your funds. For example, if your funds have remained in place for between 40% and 60% of the original term, you’ll receive 60% of the interest which would’ve been due if you’d kept those funds in place for the full term.

How do I open a Great Southern Bank term deposit?

You can open an account online or apply via post by downloading and printing an application form and sending it physically to the bank. You can also phone to apply or apply in person by visiting one of its branches.

To open a term deposit, you’ll need to provide 100 points of identification. This can be achieved by providing details of your driver’s licence and passport.

What are the requirements for opening a Great Southern Bank term deposit?

The main requirements for opening a Great Southern Bank term deposit are:

A minimum deposit of $5,000 is required
Must be an Australian resident
Must be aged over 18 years
Need to have either a transaction or savings account with Great Southern Bank in addition to your term deposit account

The pros and cons of Great Southern Bank term deposits

PROS

Competitive interest rates for longer terms

Some of the interest rates on offer are highly competitive and offer great value for your nest-egg.

Platinum Club membership boosts interest

If you’re aged over 55, a free membership to the Platinum Club will gain you additional interest to help boost your savings.

No setup or ongoing fees

Great Southern Bank doesn’t charge any setup or account maintenance fees, so there aren’t any hidden charges to eat away at your savings.

CONS

Lower rates for certain shorter terms

While some of the interest rates offered by Great Southern Bank are on a par with, or higher than, those offered by competitors, shorter term deposit rates aren’t as competitive.

Minimum account balance of $5,000

Unlike other smaller banks which have a minimum deposit amount of $1,000, you’ll need to have saved $5,000 to get a term deposit with Great Southern Bank.

Balance can’t be paid to another bank

You’ll need to have a bank account or savings account with Great Southern Bank in order to pay in and receive your term deposit funds at maturation.

More of your frequently asked questions about term deposits

How does a term deposit work?

A term deposit works by providing a fixed rate of interest for a lump sum that is deposited with a bank or financial institution for a set amount of time. Term deposits are offered for a period of a few weeks up to five years, in which time your savings are locked away so they can’t be touched (except in an emergency or in case of severe financial hardship). The interest earned on your savings can either be paid regularly (so the interest compounds) or at the end of the term as a lump sum. If you opt to receive your interest as a lump sum, you’ll generally be offered a higher rate.

What are the advantages of a term deposit?

The advantages of a term deposit are that you’ll have certainty. You’ll be certain exactly how much interest your savings will earn over a pre-defined period, as the interest rate paid on a term deposit is fixed for the duration of the term. As your savings are locked away for that term, the temptation to dip into your savings is taken away. You can be certain that your savings will be intact at the end of your term, and know exactly how much interest they have earned.

How do I find the best short term deposit rates?

The best short term deposit rates for term deposits in Australia are typically offered by online financial institutions, smaller mutual banks and credit unions. This is because mutual banks and credit unions channel all profits back to their members, which means they’re able to offer more attractive interest rates. Online banks also don’t have the overheads of maintaining bricks and mortar branches, so they’re often able to offer very attractive interest rates for short-term savings too. For this reason, it’s important to compare interest rates with Savvy before making your financial investment decision.

How can I work out how much interest I’ll earn on my term deposit?

You can use Savvy’s term deposit calculator to help you work out exactly how much interest your savings will earn over a set period. Just enter in the amount you wish to deposit, the term of the deposit and the interest rate offered, and the calculator will show you how much interest your savings will earn.