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Macquarie Bank Term Deposits

Name: Macquarie Bank Term Deposits
Creator: Savvy
Published: 2022-09-16T17:02:33+09:30

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

Written by , updated on September 11th, 2023

Macquarie Bank Limited was the second private trading bank to be established in Australia and has now grown to become one of the world’s leading financial services companies.

It operates in 33 countries and employs over 17,000 staff worldwide. In Australia, it offers home loans, car and personal loans, investment and business banking products, as well as term deposits.

Find out what Macquarie Bank has to offer in the way of term deposits, and compare their terms and interest rates here with Savvy. Find out how Macquarie Bank compares to other similar banks before deciding where to invest your hard-earned savings.

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

Macquarie Bank term deposits explained

What term deposits does Macquarie Bank offer?

Macquarie Bank offers a complete range of term deposits, from one month right up to five years.

Macquarie Bank term deposit interest rates

Term length offered	$5,000 to $1 million	Over $1 million
1 month	0.05% p.a.	0.00% p.a.
2 months	0.85% p.a.	0.75% p.a.
3 to 4 months	2.55% p.a.	2.45% p.a.
6 months	3.05% p.a.	2.95% p.a.
9 months	3.20% p.a.	3.10% p.a.
1 year	3.75% p.a.	3.55% p.a.
2 years	4.05% p.a.	3.75% p.a.
3 years	4.05% p.a.	3.80% p.a.
4 to 5 years	4.10% p.a.	3.90% p.a.

(Effective 16 September 2022)

The above interest rates are for interest either paid at maturity (up to 12 months) or annually (over 12 months). However, it is also possible to have the interest paid monthly, quarterly and half-yearly, with only a slight difference in rate between these options.

Minimum and maximum deposit limits

The minimum you can invest in a term deposit with Macquarie Bank is $5,000, while larger deposits over $1 million are available by personal negotiation.

Penalties for early withdrawal of funds

If you decide to withdraw your funds early from your term deposit, you’ll be required to give 31 days’ notice of your intent to withdraw. Partial withdrawals are possible in the case of financial hardship by individual application to the bank in writing. If you do withdraw your funds early, a reduction in the interest earned will result. The percentage reduction will depend on how much time is remaining on your original term.

Business and self-managed super fund term deposits

Macquarie Bank offers a range of term deposits for businesses with terms ranging from 30 days to 24 months. They also have investment accounts and term deposits for SMSFs. It’s always a good idea to compare SMSF term deposits before making your final investment decision, as terms and interest rates vary widely between financial institutions in Australia.

How do I open a Macquarie Bank term deposit?

If you’re already a Macquarie Bank customer, you can simply log into your existing internet banking or mobile app and open a term deposit online. If you aren’t already a customer, you’ll first have to go through a process to verify your identity before opening a term deposit. This can either be done online, by phone or by visiting a Macquarie Bank branch.

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

The main requirements for opening a Macquarie Bank term deposit are:

The minimum age limit to open a Macquarie term deposit is 18 years
You’ll have to be an Australian citizen, resident, or resident for tax purposes
You’ll need to verify your identity online using either your passport or driver’s licence
You’ll need either a Macquarie or another bank account so you can transfer money into your term deposit once it’s opened

The pros and cons of a Macquarie Bank term deposits

PROS

Highly competitive interest rates

The interest rates on offer are very generous and compare favourably to some of the top rates available in Australia.

Wide range of investment options on offer

Whether you’re a private individual, a trust, business or SMSF, Macquarie will have a product targeted to your needs on offer.

Funds can be paid to another bank

You won’t have to open a bank account with Macquarie Bank to have a term deposit, as your savings and interest can be paid to another bank.

CONS

31 days’ notice required to withdraw

Like many other banks in Australia, you will need to give Macquarie 31 days’ notice if you wish to withdraw your term deposit funds early.

No term deposits for kids

One group that Macquarie does not cater to is children, with no term deposits for kids on offer.

Reduction in interest for early withdrawals

If you have to withdraw your funds before the expected term maturity date, you’ll lose interest on your deposit as a penalty.

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.

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.

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. However, 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.