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Bank of Queensland Term Deposits

Name: Bank of Queensland Term Deposits
Creator: Savvy
Published: 2022-09-02T14:54:43+09:30

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

Written by , updated on September 11th, 2023

The Bank of Queensland (known simply as BOQ) was founded more than 150 years ago, making it one of Australia’s oldest banks. It now has 252 branches throughout Australia offering full-service retail and business banking products.

BOQ purchased Virgin Money Australia in 2013 for $40 million and continued its expansion by buying ME Bank in 2021 for $1.3 billion.

Find out more about BOQ fixed term deposits right here with Savvy. Compare their interest rates with other banks and discover which bank term deposits may be just right for you so that you find the very best place to invest your nest egg.

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

Bank of Queensland term deposits explained

What term deposits does BOQ offer?

BOQ offers a range of term deposits for those who want to ‘set and forget’ their savings for a pre-determined period. Interest rates on offer for deposits over $5,000 are very competitive and substantially higher than the big four banks. They operate a three-tiered interest rate system, with higher rates offered for larger deposits.

The first tier is for deposits from $1,000 up to $4,999, the second is for deposits from $5,000 up to $249,999 and the third is for specialist deposits from $250,000 up to $2 million. The interest rate for deposits over $250,000 can be negotiated on an individual basis with a business manager (by calling a branch of the bank). While there is a considerable difference between the first and second tiers, the rate difference between tiers two and three is less substantial.

BOQ: common term deposit interest rates

Term length	Interest rate $1,000 to $4,999	Interest rate $5,000 to $250,000
1 month	0.05% p.a.	0.05% p.a.
3 months	0.10% p.a.	1.25% p.a.
6 months	0.10% p.a.	2.00% p.a.
9 months	0.15% p.a.	2.80% p.a.
12 months	0.15% p.a.	3.30% p.a.
24 to 60 months	0.15% p.a.	3.00% p.a.

(Effective 2 September 2022)

Grace period

There’s a seven-day grace period at the end of your deposit period when you can give the bank new instructions on what to do with your lump sum. Options include:

rolling it over for another term
transferring it to another BOQ account
sending it to a bank account you have with another bank.

If you don’t communicate your wishes to the bank within this seven-day period, your funds will be reinvested for the same term and interest rate as your previous term deposit.

Early withdrawal process and penalty

If you should need to access your funds before the end of your term, you’ll need to complete an early withdrawal request form and your funds will be released after 31 days. An interest rate adjustment of 50% of your interest will be deducted if you withdraw your funds early.

Special offer

The fixed interest offered is geared towards the most popular set terms of three, six and nine months, although BOQ currently has a special offer of 3.00% p.a. for a seven-month term.

Business and SMSF Term Deposits

The interest rates quoted above are for personal customers only and do not apply to term deposits for businesses, trusts or self-managed super funds (SMSFs). The bank requires you to visit a branch or phone to discuss your requirements if you wish to open a term deposit for your SMSF, trust or business.

How do I open a BOQ term deposit?

You can open a BOQ term deposit either in person, online, or by phone. You’ll need to provide proof of your identity if you aren’t an existing BOQ customer. The proof you’ll need includes at least one form of photo ID and another major ID document which could include:

an Australian or foreign-issued passport
a government-issued driver’s licence
Medicare card
your birth certificate

What are the requirements for opening a BOQ term deposit?

The requirements for opening a term deposit with BOQ are as follows:

you must be aged 18 years or older
you’ll need to be an Australian citizen or permanent resident
joint account holders up to a maximum of two persons allowed
minimum deposit balance of $1,000 for most accounts, although a minimum of $5,000 is required to get the highest interest rates
minimum term of one month, up to a maximum term of five years
31 days’ notice to access your funds early

The pros and cons of Bank of Queensland term deposits

PROS

Very competitive interest rates

For some popular term deposit periods, BOQ offers a highly competitive interest rate on par with the other smaller banks.

Wide range of terms available

There is an option available for almost every length of time you could wish to stash away your savings, so you’ll have plenty of choice of deposit terms.

No fees

There aren’t any fees charged to open a BOQ term deposit and no account maintenance costs to eat into your savings either.

CONS

Poor rates for less than $5,000

The interest rates on offer for minimum term deposits (under $5,000) are very low, making them hardly worth the time or effort. In this case, a high interest savings account may be a better option.

Early withdrawal penalty

You’ll lose a straight 50% of the interest you would have earned if you withdraw your funds from a term deposit before the end of the deposit period.

A month’s notice required to withdraw

Even in financial hardship situations, the bank requires 31 days’ notice to withdraw funds early from your term deposit.

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.

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 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.

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