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Firstmac Term Deposits

Name: Firstmac Term Deposits
Creator: Savvy
Published: 2022-09-12T17:18:52+09:30

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

Written by , updated on September 11th, 2023

Firstmac is an Australian non-bank lender and finance company based in Brisbane. It’s privately owned and has been offering retail financial products in Australia for over 40 years. It is the owner of the popular websites loans.com.au and onlineAuto.com.au.

It now manages $14 billion in Australian mortgages and has $300 million in cash investments. It offers home loans, construction loans, car loans, insurance and term deposits to the Australian public.

Discover if Firstmac is the best option for your savings and find out more about their interest rates and terms here with Savvy. Compare the term deposits offered by Firstmac with other banks to find the perfect place to park your savings.

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

Firstmac term deposits explained

What term deposits does Firstmac offer?

Firstmac offers term deposits ranging from 30 days to two years. However, although these standard terms are the only ones advertised, other term lengths are available on request.

Firstmac: standard term deposit interest rates

Term length offered	Interest Rate Offered
30 days	0.70% p.a.
60 days	0.90% p.a.
90 days	1.95% p.a.
180 days	2.65% p.a.
12 months	3.25% p.a.
24 months	3.35% p.a.

(Effective 12 September 2022)

Flexible investment options at maturity

Firstmac offers the ability to choose your own term maturity date when you roll over your first deposit. The options available when your first term deposit ends are:

Renew your term deposit for another standard term at the advertised interest rate
Renew your term deposit for a new term which is selected by you, with the interest rate offered by negotiation
Leave your initial deposit in place for another term but withdraw the interest earned to your nominated bank account
Withdraw all your funds including the interest earned to your nominated bank account

Minimum and maximum deposit amounts

The minimum amount required to open a Firstmac term deposit is $5,000 (except in the case of a child’s term deposit). The upper limit is $5 million at the advertised interest rate, although deposits of $5 million or more are available by negotiation.

Interest payment frequency

Term deposits of up to one year will have the interest paid at maturity. For deposit terms of two years and above, interest can be paid annually or at maturity.

Term deposits for kids

Firstmac also provides term deposits for kids. The company will accept a term deposit in the name of a child aged under 18 years as long as the minimum balance is $500 or more.

Term deposits for self-managed super funds

Firstmac also offers term deposits for self-managed super funds, as well as a range of other investment options, such as unit trusts.

How do I open a Firstmac term deposit?

Applications for a Firstmac term deposit can be made online by filling in their application form. It’s easy to apply and the process should take less than ten minutes. Phone support is also available to assist with the application process if required.

What are the requirements for opening a Firstmac term deposit?

To open a Firstmac term deposit, you’ll need to provide:

Your driver’s licence
An Australian address
Your phone number
Your bank account details
Your tax file number (so the correct withholding tax can be calculated)

The pros and cons of Firstmac term deposits

PROS

Choose your own term

When your first standard term deposit ends, you have the option to choose how long you wish to roll over your funds for and your next maturity date.

Your savings are government guaranteed

Even though Firstmac is a privately-owned company, it’s a registered ADI. This means your deposits are covered up to $250,000 by the Australian Government’s Financial Claims Scheme.

Highly competitive interest rates

The interest rates offered by Firstmac are amongst the highest currently available in Australia and offer very good value for your savings.

CONS

Limited terms available at first

The first time you open a term deposit with Firstmac, there is a limited range of terms to choose from, meaning you may not be able to access the long-term investment option you need.

Limited interest payment options

If you’d like to receive your interest monthly, quarterly or half-yearly, Firstmac may not the right choice for you, as you can only select annual interest or for it to be paid at maturity.

No partial withdrawals permitted

At the end of a term, no partial withdrawals of funds are available, meaning you’ll have to either roll over your entire deposit or withdraw it all in one go.

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 which 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 most common periods for a term deposit?

Since term deposits are designed to lock away a lump sum of savings for a set period, the most common term deposits range from six months up to one year. For this reason, many banks and financial institutions offer some of their highest interest rates for one-year term deposits, as competition for new investments is fierce.

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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