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Gateway Bank Term Deposits

Name: Gateway Bank Term Deposits
Creator: Savvy
Published: 2022-09-12T16:52:45+09:30

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

Written by , updated on September 11th, 2023

Gateway Bank is a member-owned mutual bank that was founded in New South Wales in 1955. It was formerly known as the Gateway Credit Union and specialises in offering personal service and a customer-focused banking attitude. It now offers a wide range of retail financial products such as home loans, personal loans, car loans, bank accounts and term deposits.

Find out if Gateway Bank is the best option for your investments by comparing term deposits here with Savvy. Compare interest rates and terms offered to help you find the best place for your spare funds before starting your investment journey today.

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

Gateway Bank term deposits explained

What term deposits does Gateway Bank offer?

Gateway Bank offers a range of term deposits from three months to five years.

Gateway Bank: common term deposit rates

Term length offered	Interest Rate Offered
3 months	2.10% p.a.
4 to 5 months	0.70% p.a.
6 months	2.80% p.a.
7 months	1.20% p.a.
9 months	2.70% p.a.
12 months	3.35% p.a.
2 to 3 years	1.60% p.a.
4 to 5 years	0.65% p.a.

(Effective 12 September 2022)

It offers a mixed bag of term deposits, ranging from highly competitive interest rates to some which are much lower than the rates offered by other smaller banks. For this reason, it’s important to compare term deposit rates with Savvy prior to each investment you make to ensure you find the best interest rate for your savings.

Minimum and maximum limits

The minimum deposit amount is $1,000 and the maximum is $500,000, although larger deposits are available upon personal application to the bank.

Interest payments

Interest is paid either monthly, half-yearly, annually or at the maturity of the term. The interest can be paid either to an Edge Account or an Everyday Savings Account, but cannot be compounded (paid back regularly into the term deposit account to accrue more interest).

Withdrawal notice

For deposits of five months and 12 months in length, 31 days’ notice is required if you wish to terminate your term deposit early. For all other deposits, the notice requirement is seven days.

How do I open a Gateway Bank term deposit?

If you’re an existing Gateway Bank customer, a term deposit can be opened through your normal online banking login. The process is as follows:

Log into your Edge Account or Everyday Savings Account
Go to the Apply tab and select Create Account
Select a term deposit and follow the prompts to choose your deposit term, sum and interest payment options

If you aren’t an existing Gateway Bank customer, you can apply over the phone or online by filling in a Membership and Term Deposit Application Form.

What are the requirements for opening a Gateway Bank term deposit?

The main requirements for opening a term deposit with Gateway Bank are as follows:

You must be at least 18 years of age
You’ll need to be an Australian citizen or permanent resident
You’ll need to provide two forms of photo ID (such as your passport and driver’s licence), plus your Medicare card, in order to open an Edge account.
You’ll need to provide your Tax File Number

The pros and cons of Gateway Bank term deposits

PROS

Low minimum deposit

To open an account with Gateway Bank, you’ll only need a $1,000 minimum deposit, which is lower than the $5,000 minimum many banks require.

Competitive interest rates for some terms

Some of the interest rates on offer from Gateway Bank are highly competitive with other banks and financial institutions in Australia.

Term deposits available to SMSFs and trusts

Gateway Bank also offers its term deposits for trusts and self-managed super funds, with all of the same rates applying to these deposits as listed above.

CONS

Low interest rates for long-term deposits

The interest rates offered for longer-term deposits of two years and over aren’t competitive, so you may have to look elsewhere if you’re wanting the best deal for a long term deposit.

Some term deposits require withdrawal notice

Deposits with terms of five months and 12 months require 31 days’ notice to be given to the bank if you wish to withdraw your funds early.

Must also have an Edge account

In order to open a term deposit with Gateway Bank, you’ll also be required to open an Edge account or a savings account to deposit and withdraw your funds.

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 is the maximum length of term deposit that I can take out?

Financial institutions in Australia offer term deposits up to a maximum of five years in length. Prior to 2007, ten-year term deposits were routinely offered to customers wanting to lock away their savings for an extended period. Following the Global Financial Crisis, these ten-year terms were withdrawn.

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.