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Newcastle Permanent Term Deposits

Name: Newcastle Permanent Term Deposits
Creator: Savvy
Published: 2022-09-20T16:45:42+09:30

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

Written by , updated on September 11th, 2023

Newcastle Permanent Building Society was established in Newcastle, NSW, in 1939, but didn’t open its first branch to customers until 1966. It has since grown to become one of Australia’s largest customer-owned financial institutions, with over $10.7 billion in assets. It offers a wide range of retail and business banking solutions including home, car and personal loans, insurance and term deposits.

Find out here with Savvy whether Newcastle Permanent offers you the best fixed term deposit rates available for your savings. Compare the interest rates on offer with those of other banks and financial institutions, as well as the terms available, to help you decide where the best place is to invest your savings.

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

Newcastle Permanent term deposits explained

What term deposits does Newcastle Permanent offer?

Newcastle Permanent offers term deposits starting from 21 days right up to five years.

Newcastle Permanent term deposit interest rates

Term length	Interest Rate
21 to 75 days	0.50% p.a.
76 to 105 days	2.00% p.a.
106 to 165 days	1.20% p.a.
166 to 195 days	2.65% p.a.
196 to 255 days	1.90% p.a.
256 to 345 days	2.00% p.a.
346 to 385 days	3.50% p.a.
2 to 5 years	2.80% p.a.

(Effective 20 September 2022)

Interest payment frequency

The interest rates quoted are for interest paid at maturity (up to 12 months) or annually (over 12 months). If you wish the interest to be paid more frequently, such as monthly, quarterly or half-yearly, the interest rates on offer are marginally lower than the rates offered for interest paid at maturity.

Minimum and maximum deposit amounts

The minimum deposit required is $1,000, while the maximum permitted is $10 million (by negotiation).

Early withdrawal penalties

If you wish to withdraw your term deposit funds early, the amount of interest you earn will be reduced depending on how much of your original term there is remaining. This will be determined by Newcastle Permanent which can be revealed once you contact them.

Age limits

Newcastle Permanent does allow term deposit accounts to be opened for children under the age of 14 in the child’s name. However, an adult will have to be the signatory on the account until the child is old enough to provide their own signature. The child’s birth certificate and Medicare card are required to prove their identity.

How do I open a Newcastle Permanent term deposit?

If you’re an existing customer of Newcastle Permanent, you can open a term deposit either online or on the mobile app using your usual banking details. Accounts can also be opened in person at a branch or over the phone.

If you aren’t an existing customer and wish to open a term deposit either online or in person, you’ll have to provide proof of your identity before your account can be opened.

What are the requirements for opening a Newcastle Permanent term deposit?

The requirements for opening a term deposit include the following:

You’ll need to be an Australian citizen or permanent resident
If you aren’t an existing customer, you’ll be required to provide suitable ID including your passport, driver’s licence and Medicare card
You’ll need a minimum of $1,000 to open a deposit

The pros and cons of Newcastle Permanent term deposits

PROS

No fees or charges

Newcastle Permanent doesn’t charge any fees or administration costs to open or maintain a term deposit account.

Term available under one month

If you require a term deposit for less than a month, Newcastle Permanent can offer a term of 21 days, which is a rarity in the Australian banking world.

Deposits for kids available

Term deposits for kids are available with Newcastle Permanent, but a parent or guardian will have to open the term deposit account and be a signatory until the child reaches 14 years of age.

CONS

Interest can’t be compounded

The interest received can’t be paid back into your term deposit account to enable compound growth of your savings, as it has to be transferred into another bank account.

Interest rates reduced for monthly payments

If you wish to have the interest earned on your term deposit paid monthly, the rate you receive will be reduced on average by 0.05% p.a.

Less competitive interest rates for some terms

Some of their interest rates are substantially higher than those offered by some of the major big banks, but others are less competitive compared to other smaller online banks and credit unions.

More of your frequently asked questions about term deposits

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.

How do I find the best short term deposit rates?

The best short term deposit rates for term deposits in Australia are typically offered by online financial institutions, smaller mutual banks and credit unions. This is because mutual banks and credit unions channel all profits back to their members, which means they’re able to offer more attractive interest rates. Online banks also don’t have the overheads of maintaining bricks and mortar branches, so they’re often able to offer very attractive interest rates for short-term savings too. For this reason, it’s important to compare interest rates with Savvy before making your financial 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.