Home > Term Deposits > BankVic Term Deposits

BankVic Term Deposits

Name: BankVic Term Deposits
Creator: Savvy
Published: 2022-09-02T15:11:09+09:30

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

Written by , updated on September 11th, 2023

BankVic was founded in 1974 as the Police Credit Cooperative to serve the banking needs of Victoria’s police force. In 1979, it opened its membership to members of the emergency services and health workers in 1992.

It is a not-for-profit mutual bank providing financial services for Victorian emergency service workers, health workers and related public sector employees. It now has over 117,000 members and over $2.6 billion in assets, with six branches and four ATMs.

Compare BankVic term deposits to other offers on the market right here with Savvy to help you determine if they're the best place to park your savings. Work out if you’re eligible to open an account with BankVic and compare the interest rates on offer with us today.

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

BankVic term deposits explained

What term deposits does BankVic offer?

BankVic offers a range of term deposits from three months right up to five years. The initial minimum term deposit amount you need is $5,000. The two main types of deposits offered by BankVic are:

12 Month Income

The bank offers a 12-month Income Option, which is a one-year term deposit offering fixed interest that is either paid monthly, quarterly or annually. A factor that sets this deposit apart from the standard offer is that customers can make subsequent deposits of at least $2,000 into their account during this 12-month period.

Standard term deposits

For the standard term deposits, there are only three interest rates on offer, which must be paid either annually or at maturity.

BankVic term deposit rates:

Term length	Interest rate
3 to 11 months	1.95% p.a.
12 months	2.50% p.a.
13 to 60 months	2.00% p.a.
12 Month Income option	2.45% p.a.

(Effective 2 September 2022)

The structure of these interest rates means that BankVic is highly competitive for term deposits up to one year, with their interest rates more than four times higher in some instances than the major banks for short-term deposits.

For terms of more than one year, their interest rates don't stand out as so generous, particularly when compared to other online banks which offer much higher interest for long-term deposits.

Who is eligible to open a BankVic term deposit?

BankVic is open to all Victorian first responders, plus other specified people living and working in Victoria.

To be eligible, you need to work in one of the following professions:

Police
Ambulance
Fire Services
Emergency Services
Health Professionals (including people working in hospitals, health centres and ancillary services)
Life Guards

In addition, other groups of people are also eligible to take out a term deposit with BankVic:

Public servants in Victoria (both State and Federal)
Persons introduced by an existing member of at least 12 months standing
Friends and family of an existing member
People working within 5km of a BankVic branch
Persons approved by the Chief Executive Officer

How do I open a BankVic term deposit?

To open a term deposit with BankVic, either visit a BankVic branch to receive personal service or phone them to get the account-opening process started. Online applications aren’t possible, as you’ll need to speak to a BankVic employee to get set up for an online account.

As with opening any other bank account in Australia, you’ll need to provide 100 points of ID to open an account with BankVic. This ID must include at least one form of photo ID. Suitable documents to prove your ID include:

driver’s licence
passport
Citizenship certificate
Medicare card
birth certificate

When applying to become a member of the mutual bank, you’ll be required to complete an application form which includes questions about your employment and eligibility. You will also be required to purchase ten $1 shares in the bank, which are redeemable if you close your account.

The pros and cons of BankVic term deposits

PROS

High interest rates under 12 months

The interest rate offered for deposits under 12 months is far higher than many competitors.

Award-winning bank

BankVic was awarded Canstar’s ‘Customer-Owned Bank of the Year’ Award for Term Deposits in 2021 and has a five-star rating.

Personalised service

The bank has Australian-based customer service available from 8am to 7pm and on Saturdays from 9am to 5pm (all AEST).

CONS

Strict VIC membership criteria

You’ll need to live within 5kms of a BankVic branch or be employed in one of the areas listed above in Victoria to take advantage of the interest rates on offer.

Lower interest rates over 13 months

Although the term deposit interest rate for deposits under 12 months is in the high range, those for deposits over 13 months aren’t as competitive.

No online applications

To apply to open a term deposit, you’ll either have to visit a BankVic branch or phone, with no online or mobile applications being possible.

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.