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ANZ Bank Term Deposits

Name: ANZ Bank Term Deposits
Creator: Savvy
Published: 2022-09-09T16:33:26+09:30

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

Written by , updated on September 11th, 2023

The Australia and New Zealand Banking Group (ANZ) is Australia’s second-largest bank by assets and its fourth-largest by market capitalisation. It started life as the Bank of Australasia in 1835 and amalgamated with the Union Bank of Australia to become ANZ in 1951.

It now boasts more than 50,000 employees and has in excess of 6 million customers right across Australia, offering a wide range of retail and business banking services.

Comparing ANZ’s term deposits with Savvy will help you find the best interest rates and terms for your individual savings needs. Compare term deposits with Savvy today before making your important investment decision.

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

ANZ Bank term deposits explained

What term deposits does ANZ Bank offer?

ANZ offers two types of fixed term deposits: Advance Notice and standard term deposits. The fixed interest on offer can be paid either monthly, quarterly, half-yearly, annually or at maturity depending on how long you’re looking to deposit your savings.

The rates below represent interest being paid at maturity (under 12 months) or annually (12 months or more) for deposits of $5,000 to $99,999.

ANZ Bank: common term deposit interest rates

Term length offered by ANZ	Advance Notice Interest Rates	Standard Term Deposit Interest Rates
7 days to less than 2 months	0.20% p.a.	0.05% p.a.
3 to less than 4 months	0.35% p.a.	0.05% p.a.
6 to less than 7 months	0.80% p.a.	0.10% p.a.
9 to less than 10 months	1.00% p.a.	0.10% p.a.
11 to less than 12 months	3.00% p.a.	0.10% p.a.
12 to less than 24 months	1.25% p.a.	0.15% p.a.
24 to less than 36 months	1.50% p.a.	0.15% p.a.
36 to less than 48 months	1.75% p.a.	0.15% p.a.
48 up to 60 months	2.25% p.a.	0.15% p.a.

(Effective 9 September 2022)

Advance Notice Term Deposits

With an Advanced Notice term deposit, you’re required to give 31 days’ notice before terminating your term deposit earlier than the planned maturity date.

After giving this notice, you may withdraw all or a portion of your original deposit
Minimum withdrawal is $1,000
The balance of your deposit must remain above $5,000 after your withdrawal
The interest rates offered for the Advanced Notice Term Deposits are significantly higher than those of the standard term deposits
Early termination penalties will apply

Standard term deposits

In contrast, these term deposits do not require 31 days’ notice to withdraw your funds prior to the planned maturity date, but early termination penalties will still apply and the interest offered is much lower than an Advanced Notice term deposit.

Early termination penalties

An early termination administration fee of $30 will be charged, with the interest paid on your deposit to be reduced on a sliding scale, depending on what proportion of the originally agreed term is remaining. This is how your term deposit interest reduction will be calculated if you choose to end a term deposit with ANZ early:

Up to 19% of term completed: 90% interest reduction
20% to 39% of term completed: 80% interest reduction
40% to 59% of term completed: 60% interest reduction
60% to 79% of term completed: 40% interest reduction
80% to 99% of term completed: 20% interest reduction

Grace period

There is a seven-day grace period at the end of your term deposit period. During this time, you can choose what to do with your savings, including:

rolling them over into another term deposit at the same interest rate
making a partial withdrawal and reinvesting the remainder
starting a new term deposit with possibly a better interest rate
withdrawing your funds (and interest) into another ANZ account.

ANZ Business Term Deposits

Business term deposits, as well as those for SMSFs and trusts, are available for investments from $5,000 to $99,999. Larger term deposits of over $100,000 are available on an individual application basis. The interest rates offered are comparable with those offered for personal term deposits, and the early termination notice period and penalties as described above still apply.

Term deposits for seniors

ANZ Bank does not offer a special term deposit rate for seniors, although they do offer a Seniors Bank Account and a Smart Choice Pension account specially geared towards older or retired Australians.

How do I open an ANZ Bank term deposit?

To open an ANZ term deposit, you’ll need an existing ANZ Everyday bank account or savings account to transfer money into and out of your term deposit account.

If you’re an existing customer and already have an ANZ bank account, you’ll be able to open a term deposit online through your usual banking app.

If you aren’t an existing ANZ customer, you’ll first need to register as a customer and open either a transaction or savings account before opening your term deposit account. You can do this either by visiting an ANZ branch or by phone.

To open an account for the first time, you’ll require 100 points of ID to prove your identity. Suitable documents include:

Your passport
Your driver’s licence
One other form of identification such as a utility bill to prove your current residential address

What are the requirements for opening an ANZ Bank term deposit?

The requirements for opening an ANZ term deposit are as follows:

Must be over 18 years of age
Must be an Australian citizen or permanent resident
Must have an Australian residential address
Minimum deposit of $5,000 and maximum of $99,999 when arranged online
ANZ term deposit rates for deposits of $100,000 or more can be arranged on an individual basis by contacting your local branch

The pros and cons of ANZ Bank term deposits

PROS

Wide range of terms offered

Whatever your needs are to stash away your savings, ANZ Bank offers a wide range of term deposits for your spare funds.

No account fees

ANZ doesn’t charge fees for opening or maintaining a term deposit, although fees may apply to other ANZ transaction or ANZ savings accounts depending on your choice of accounts.

‘Big bank’ security

As one of Australia’s largest banks, you can park your funds with ANZ Bank knowing you have the security and backing of a large bank behind you.

CONS

Early withdrawal administration fee

If you wish to withdraw your funds early from an ANZ term deposit, you’ll be charged an administration fee as well as lose some of the interest you otherwise would have earned.

No payments to other financial institutions

To open an ANZ term deposit, you’ll first require another ANZ bank account (either a savings account or a transaction account), as payments can’t be made to another financial institution.

Low interest rates

The interest rates offered by ANZ Bank are lower than those offered by other smaller banks and online financial institutions, which is why it’s important to compare term deposit interest rates with Savvy before making your investment decision.

More of your frequently asked questions about term deposits

What is a term deposit?

Although many people are familiar with the phrase ‘term deposit,’ not everyone knows what a term deposit is. A term deposit is an agreement between you and your bank or financial institution to lock away a set amount of money for a set period (known as the ‘term’ of the deposit) in return for a fixed rate of interest. As the interest rate and length of the deposit are fixed, you’ll be able to calculate in advance how much money your savings will earn during the life of the term deposit. When your chosen term is over, you can choose to either withdraw your funds and the interest earned or roll them over into another term deposit.

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.

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.