Fact checked
Bank Australia is the result of the merger of more than 70 credit unions and co-ops since its beginnings in Australia in the 1950s. It holds the title of Australia’s first customer-owned bank and is based in Victoria.
It now boasts more than 180,000 customers, 400 staff and 16 branches across the country. The bank prides itself on being a ‘clean money’ institution through ethical investing and vowing never to invest in fossil fuels, arms, live animal exports, tobacco or gambling products.
Find out if Bank Australia is the right choice for your term deposit by comparing the interest rates and terms on offer here with Savvy. See how their rates compare with other banks and financial institutions to help you determine if they’re the best option available for your precious nest-egg.
*Please note that Savvy does not represent Bank Australia for its term deposit products.
Bank Australia offers a limited range of term deposits from three months up to three years.
Bank Australia term deposit interest rates
| Term lengths | Interest rates |
|---|---|
|
3 months |
1.25% p.a. |
|
4 to 5 months |
1.00% p.a. |
|
6 months |
2.25% p.a. |
|
7 months |
2.00% p.a. |
|
9 months |
2.75% p.a. |
|
12 to 18 months |
3.25% p.a. |
|
19 to 24 months |
3.35% p.a. |
|
36 months |
3.50% p.a. |
(Effective 14 September 2022)
Interest payment alternatives
The interest rates quoted are for interest paid at the maturity of the term deposit. If you wish to receive your interest monthly, the interest rate you'll receive will be marginally lower than the advertised rates above.
Limits on investment sum
The minimum amount for a term deposit is $500 and the maximum amount permitted is $1 million. However, investments over $1 million are available by personal negotiation.
Notice required for early withdrawal
If you wish to withdraw your savings before the agreed maturity date, you’ll be required to give 31 days’ notice of your withdrawal intent.
You can open a term deposit with Bank Australia either online, over the phone or in person at one of their branches. The online application process will take less than five minutes, but you will need your driver’s licence, Medicare card and passport handy for the process.
The requirements for opening a Bank Australia term deposit are:
The minimum amount required for a term deposit is $500, which is a far smaller sum than the usual $1,000 to $5,000 usually required for a term deposit
Whilst not offering the highest possible interest, the term deposit rates on offer are very comparable with similar-sized financial institutions.
Term deposits are available for children aged from 13 years upwards. Bank Australia is one of just a handful of financial institutions offering term deposits for kids.
Australian Unity’s conditions state that early withdrawal of funds for term deposits under two years where interest is paid at maturity is at the discretion of the bank.
The only options for payment of interest are at maturity or monthly (for a limited term selection). There are no options to have your interest paid quarterly or half-yearly.
Bank Australia doesn’t offer the full range of terms for either short-term or long-term investing of savings, so you’ll have to look elsewhere for five-year deposits.
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Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
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© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.