Fact checked
The Royal Automobile Club of Western Australia (now just known as RAC) was founded by a group of motoring enthusiasts in 1905 as an independent voice for road users. It now offers roadside assistance, insurance, home security and a wide range of financial services, including term deposits, for retail clients.
Find out if RAC Finance term deposits are the best option for your savings here with Savvy. Check your eligibility and compare interest rates and terms available to help you find the best interest rates for your savings before making your investment.
*Please note that Savvy does not represent RAC for its term deposit products.
The RAC only offers a limited range of term deposits, which range from six months up to four years.
RAC term deposit interest rates
| Term length offered | Interest paid monthly | Interest paid quarterly | Interest paid half-yearly | Interest paid annually |
|---|---|---|---|---|
|
6 months |
N/A |
N/A |
2.45% p.a. |
N/A |
|
1 year |
3.15% p.a. |
3.20% p.a. |
N/A |
3.25% p.a. |
|
2 years |
3.90% p.a. |
3.95% p.a. |
N/A |
4.00% p.a. |
|
3 years |
3.35% p.a. |
3.40% p.a. |
N/A |
3.45% p.a. |
|
4 years |
3.35% p.a. |
3.40% p.a. |
N/A |
3.45% p.a. |
(Effective 14 September 2022)
Interest payment frequency
For long term deposits of a year or more, interest can be paid either monthly, quarterly or annually. For their six-month term, interest is only payable at half-yearly intervals (which is at maturity in this instance). Deposits are accepted from trusts and business term deposits are also available.
Minimum deposit amount
The minimum required for a term deposit is $5,000 and the maximum amount accepted is $1 million (amounts over this sum by special arrangement).
Investment risk
The RAC is not an authorised deposit-taking institution (ADI), which means that when you deposit funds with them, they aren’t protected by the Australian Government’s Financial Claims Scheme. This scheme applies to all ADIs in Australia and guarantees personal savings up to $250,000 per person per ADI, in the unlikely event that a financial institution collapses. You should consider this investment risk when deciding where to park your savings versus the competitive interest rates offered.
Term deposits can be opened online, by printing out an application form and either posting or emailing it or in person by visiting an RAC office. To open a term deposit online, you’ll have to be an existing RAC member with online access.
The main requirements for opening a term deposit with RAC are as follows:
The interest rates on offer are among some of the highest on offer in Australia, with very generous terms particularly for terms of a year and over.
Opening a term deposit automatically gives you membership of the RAC, which provides a range of member benefits including retail discounts, movie tickets, reduced price fuel and cheap travel deals.
By depositing your funds with the RAC, you will be contributing to the sponsorship of the RAC Rescue Helicopters, which provide emergency medical rescue services for remote locations in WA.
Because the RAC is not an authorised deposit-taking institution, your savings are not covered by the Australian Government’s Financial Claims Scheme, which guarantees deposits up to $250,000.
To become a RAC member, you must be a resident of Western Australia and have a valid WA residential address.
RAC Finance does not offer a wide range of terms for their deposits, so if you only wish to invest your money for several months, your sole option available is a six-month term.
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Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.