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Bank of Sydney Term Deposits

Name: Bank of Sydney Term Deposits
Creator: Savvy
Published: 2022-09-20T17:24:01+09:30

Explore Bank of Sydney'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 Sydney can trace its origins back to 1986 when it started as an office of the Laiki Bank of Cyprus. It changed its name to Laiki Bank Australia in 2000 and opened retail branches in Sydney, Melbourne and Adelaide.

The bank was bought by the Bank of Beirut Group and was rebranded as the Bank of Sydney in 2013. It now offers a range of personal and business banking products including home loans, investment loans, bank accounts and term deposits.

Find out more about the Bank of Sydney here with Savvy and work out if the interest rates and terms available are suitable for your investment needs. Compare term deposit offers with those of other banks right here to help make sure you get the best deal for your savings.

*Please note that Savvy does not represent Bank of Sydney for its term deposit products.

Bank of Sydney term deposits explained

What term deposits does Bank of Sydney offer?

The Bank of Sydney offers a limited range of term deposits for up to 13 months. However, they also offer a tiered fixed term deposit and a foreign currency term deposit so you can earn interest on any foreign currency you may have stashed away.

Bank of Sydney term deposit interest rates

Term length	Interest Rate
1 month	1.05% p.a.
2 months	1.25% p.a.
3 months	2.05% p.a.
4 months	2.00% p.a.
6 and 7 months	2.60% p.a.
8 months	2.65% p.a.
9 months	2.75% p.a.
10 months	2.85% p.a.
11 months	2.95% p.a.
12 months	3.05% p.a.
13 months	3.15% p.a.

(Effective 20 September 2022)

Online term deposits

The above rates are for online term deposits with a maximum investment sum of $500,000 and interest paid at maturity only.

Personal fixed term deposits

Fixed term deposits are also available up to a maximum sum of $1 million. The interest rates available for this type of deposit are tiered according to how much you wish to invest. This means the interest rate is higher for sums between $250,000 and $1 million than they are for those under $50,000.

Foreign currency term deposits

These are available in four currencies: USD, EUR, GBP and NZD. The terms available are just 1, 2, 3, 6 and 12 months. The interest rates on offer are very low, so they may not offer the best option for your foreign currency reserves.

Early withdrawal penalties

If you want to withdraw funds from your term deposit earlier than the agreed maturity date, there will be a reduction in the interest paid. You will need to provide eight days’ notice to withdraw your funds early. The interest rate reduction will be calculated as follows:

Up to 20% of term remaining: 20% interest reduction
20% to 40% of term remaining: 40% interest reduction
40% to 60% of term remaining: 60% interest reduction
60% to 80% of term remaining: 80% interest reduction
80% to 99% of term remaining: 90% interest reduction

If you wish to withdraw your term deposit early, there will also be an administration fee of $30 charged.

Business Term Deposits

The Bank of Sydney also offers term deposits for businesses up to $250,000. The terms and interest rates on offer are the same as those offered for personal term deposits.

How do I open a Bank of Sydney term deposit?

Applications to open a term deposit can be made online through Bank of Sydney’s internet banking portal or in person at a branch. If you aren’t an existing Bank of Sydney customer, you’ll need to provide proof of your identity and your tax file number.

What are the requirements for opening a Bank of Sydney term deposit?

The requirements to open a Bank of Sydney term deposit are:

You’ll need to be at least 18 years of age
You’ll need to be an Australian permanent resident or citizen currently living in Australia
You’ll need to prove your identity by providing details of your passport and driver’s licence
You’ll need a minimum of $1,000 to invest

The pros and cons of Bank of Sydney term deposits

PROS

Competitive interest rates

The interest rates on offer are very generous and compare favourably with those offered by other small banks and financial institutions for the terms they offer.

Minimum deposit of only $1,000

Unlike many other banks which have a minimum term deposit of $5,000, Bank of Sydney permits deposits starting at just $1,000.

No account fees

The Bank of Sydney doesn’t charge fees for opening or maintaining a term deposit account, so there aren’t any hidden nasties to eat away at your savings.

CONS

Limited terms available

Bank of Sydney only offers terms for deposits up to 13 months, and there are no options for terms of 2, 3 or 4 years

Early withdrawal administration fee

The Bank of Sydney charges a flat fee of $30 if you wish to withdraw your funds before the expected maturation date on top of an interest reduction.

Very low interest on foreign currency term deposits

The interest rates offered for foreign currency term deposits are very low, even for longer periods such as a one-year 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 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.