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BankSA Term Deposits

Name: BankSA Term Deposits
Creator: Savvy
Published: 2022-09-14T17:14:36+09:30

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

Written by , updated on September 11th, 2023

BankSA was first established as the Savings Bank of South Australia back in 1848. Its merger with the State Bank of South Australia saw the bank owned by the SA State Government, before its collapse in 1991. It was eventually acquired by Advance Bank, which was itself bought by St.George Bank in 1997, which in turn was purchased by Westpac Bank in 2008.

Today, BankSA employs more than 300 people and has millions of customers, mainly in SA and the west of Victoria. It offers a wide range of banking products, including term deposits.

Explore BankSA’s term deposit interest rates and fees here with Savvy. Find out how they compare to other banks to help you decide whether a BankSA term deposit is the best place to invest your savings.

*Please note that Savvy does not represent the BankSA for its term deposit products.

BankSA term deposits explained

What term deposits does BankSA offer?

As would be expected by a bank in the Westpac stable, BankSA offers a wide range of term deposits starting at one month and reaching up to five years.

BankSA: common term interest rates

Term length offered	Interest rate (paid at maturity)
Up to 2 months	0.20% p.a.
3 to less than 4 months	0.35% p.a.
6 to less than 7 months	0.80% p.a.
9 to less than 10 months	1.00% p.a.
11 to less than 24 months	1.10% p.a.
24 to less than 36 months	1.50% p.a.
36 to less than 48 months	1.75% p.a.
48 to less than 60 months	2.00% p.a.
60 months	2.25% p.a.
Special offer: 12 to 23 months	3.65% p.a.

(Effective 14 September 2022)

Additional interest rate for online use

Add an additional 0.10% p.a. to the interest rate if your term deposit is opened or renewed online and you’re an existing customer. This offer is only open to personal and business customers for deposits from $1,000 to $2 million (or up to $5 million by individual negotiation).

Choose your interest frequency

Interest can be paid either monthly for deposits over six months, half-yearly for deposits over 12 months, annually for deposits over 24 months or at maturity. There is no difference in the interest rate offered regardless of the frequency at which your interest is paid. This is in contrast to other banks which tend to reduce the interest rate if you wish to receive your interest more often.

Notice required to withdraw funds early

If you need to withdraw your term deposit funds early, 31 days’ advance notice is required. A reduction in interest will occur if you do withdraw your funds early, based on a sliding scale depending on how much of your original term is remaining.

How do I open a BankSA term deposit?

If you’re already a BankSA customer, term deposits can be opened either through your standard internet banking account or on the BankSA mobile app.

If you aren’t an existing BankSA customer, you can open a term deposit account either online through the BankSA website, in person at a branch or over the phone. If you wish to open a fixed term deposit for under 12 months and have your interest paid monthly, you’ll also have to open a bank account to receive your interest.

What are the requirements for opening a BankSA term deposit?

The requirements for opening a BankSA term deposit are:

You’ll need your Australian driver’s licence, passport and Medicare card to prove your ID
You’ll need to provide your Tax File Number so withholding tax can be accurately calculated
You’ll need a minimum deposit of $1,000
You must be either an Australian citizen, permanent resident or hold an appropriate residency visa
For term deposits for children under the age of 14, the adult or guardian must agree to be a signatory to the account until the child is old enough to sign for themselves

The pros and cons of BankSA term deposits

PROS

No interest rate loss for frequent payments

BankSA doesn't penalise savers wishing to receive their interest monthly or half-yearly, unlike other banks which offer a reduced interest rate for more frequent payments.

Term deposits for kids permitted

It’s possible to open a term deposit for kids aged 14 years and under with BankSA, with a parent or guardian nominated as signatory until the young person is old enough to sign for themselves.

Wide range of terms available

Whatever the length of time you’re looking for to stash your cash, BankSA will be able to offer the term you need as their range of term deposits is extensive.

CONS

Interest rates on the low side

The interest rates offered by BankSA are similar to those offered by other large banks but don’t compare favourably to those of online banks or credit unions.

31 days’ notice required to withdraw early

If you want to withdraw your term deposit funds early due to financial hardship, you’ll have to give 31 days’ notice of your intent to withdraw and break your deposit contract.

Transaction account required for interest

If you choose a short-term deposit of under 12 months and opt to have your interest paid monthly, you’ll require a BankSA transaction account to receive the interest payments.

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.

Do all financial institutions offer term deposits for SMSFs?

No – not all banks and financial institutions offer term deposits for self-managed super funds. Those that do tend to be the larger banks or institutions which have a business focus. For this reason, it’s important to look around and compare SMSF term deposits with Savvy before making your final 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.

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