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Teachers Mutual Bank Term Deposits

Name: Teachers Mutual Bank Term Deposits
Creator: Savvy
Published: 2022-09-02T15:32:02+09:30

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

Written by , updated on September 11th, 2023

Teachers Mutual Bank started life in 1966 as the Hornsby Teachers Association Credit Union but grew into a substantial building society serving teaching professionals in NSW.

From that time, it has grown to become one of Australia’s largest mutual banks, with over 200,000 members and more than $7 billion in assets. It offers a range of retail financial services to professionals in the teaching, fire-fighting and health areas.

Find out with Savvy whether Teachers Mutual Bank offers term deposits which may be right for your hard-earned savings. Compare interest rates and terms to make sure you find a term deposit which fits in with your needs perfectly.

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

Teachers Mutual Bank term deposits explained

What term deposits do Teachers Mutual Bank offer?

The Teachers Mutual Bank offers a range of term deposits from three months to 36 months duration. Their interest rates are as follows:

Teachers Mutual Bank term deposit rates

Term length	Interest rate
3 to 5 months	1.10% p.a.
6 months	1.35% p.a.
7 months	2.00% p.a.
8 months	1.35% p.a.
9 to 11 months	1.50% p.a.
12 to 17 months	2.30% p.a.
18 to 23 months	3.00% p.a.
24 to 35 months	3.20% p.a.
36 months	3.80% p.a.

(Effective 31 August 2022)

These interest rates are generally considerably higher than those of the major banks. However, some of the quoted rates aren’t amongst the higher rates available in Australia from other financial institutions, particularly for those of less common terms such as four to five and ten to 11 months.

Non-members

These term deposit rates are open to non-members of the bank, but the interest rate is reduced by 0.05% p.a. if you aren’t a registered member.

Edvest benefits

The bank offers a benefits scheme for those aged over 50 which is known as Edvest. Membership of the scheme costs $30 per year and entitles you to a 0.05% p.a. higher rate than the advertised interest above.

Business and SMSF term deposits

The Teachers Mutual Bank does not offer specialised business or SMSF term deposits. However, term deposits may be opened by Trusts and sole traders based on individual applications.

How do I open a Teachers Mutual Bank term deposit?

To open a term deposit, go to the Teachers Mutual Bank website and complete the application form, which should take between five and eight minutes.

Follow the prompts to establish an account. Your details will need to be verified before you’re able to open your term deposit. Applications can also be made by phone.

What are the requirements for opening a Teachers Mutual Bank term deposit?

Eligibility

Membership of the Teachers Mutual Bank is open to all professionals employed in the teaching education sector and their families. However, it has three other divisions available for those employed in other professions, which are:

UniBank (for university professionals)
Firefighters Mutual Bank
Health Professionals Bank

Additional requirements

Other requirements for opening a term deposit account include:

You must be at least 18 years of age
You’ll need to be an Australian citizen or permanent resident
Teachers Mutual Bank has a $1,000 minimum term deposit amount
Deposits over $500,000 are subject to negotiation
You’ll need to provide two identity documents showing your full name, date of birth and address (for example, your driver’s licence and passport)
You’ll also need to open an Everyday Direct transaction bank account with a Visa debit card attached
If you need to withdraw your funds early due to financial hardship, a period of 31 days’ notice is required
You’ll need to provide your tax file number to ensure your withholding tax is calculated correctly
To become a member, you’ll have to deposit $10 to purchase one share in the bank prior to opening your term deposit account

The pros and cons of Teachers Mutual Bank term deposits

PROS

Competitive interest rates

Some of the interest rates offered by Teachers Mutual Bank are highly competitive; however, it’s always important to compare interest rates with Savvy.

Edvest program for older teachers

More mature teachers aged over 50 can benefit from a boost to their interest rate by joining Edvest for just $30 per year, which will net them a 0.05% p.a. interest rate increase.

Carbon neutral and ethical

As well as ensuring its funds are ethically invested, the bank is run to be carbon neutral, helping reduce the human impact on climate change.

CONS

Strict eligibility criteria for membership

The bank is only open to those employed in the education sector, as well as firefighters, university employees, students and health professionals.

Not all interest rates sparkle

Whilst some interest rates for term deposits are very competitive, not all terms offer great rates, so it pays to compare terms carefully to ensure you’re getting the best deal.

Cap at three-year term

Unlike other banks which offer term deposits of up to five years, the maximum term deposit offered by Teachers Mutual is three years.

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 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.

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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