Home > Term Deposits > Westpac Term Deposits

Westpac Term Deposits

Name: Westpac Term Deposits
Creator: Savvy
Published: 2022-08-31T16:36:56+09:30

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

Written by , updated on September 11th, 2023

Westpac Bank started life more than 200 years ago as Australia’s first bank. It was known as the Bank of New South Wales, but changed its name to Westpac Banking Corporation in 1982 after merging with the Commercial Bank of Australia.

Today, Westpac Bank is one of Australia’s big four banks. It has over 14 million customers, 1,200 branches, 3,200 ATMs and 40,000 employees. It offers a wide range of banking products including many term deposits.

You can compare Westpac Bank term deposits here with Savvy to help you decide whether their products are the right ones for you to maximise your savings. Compare terms and interest rates with us today to find the best way to start growing your nest-egg.

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

Westpac Bank term deposits explained

What term deposits does Westpac Bank offer?

As can be expected from Australia’s second-largest bank, Westpac Bank offers the widest range of term deposits ranging from one month right up to five years. They are also able to negotiate term deposit rates for less than 30 days on a personal basis, but you’ll need to phone to make such an arrangement in person.

The minimum you can deposit is $5,000 with an upper maximum of $5 million. There are no set-up or ongoing account-keeping fees.

Westpac Bank: common term deposit rates

Term length	Interest rate
1 month	0.20% p.a.
3 months	0.25% p.a.
6 months	0.35% p.a.
9 months	0.90% p.a.
12 to 23 months	1.10% p.a.
2 years	1.50% p.a.
3 years	1.75% p.a.
5 years	2.25% p.a.

(Effective 31 August 2022)

On top of their advertised term deposit rates, Westpac also offers a bonus interest rate of 0.10% p.a. if you’re an existing customer and an additional bonus rate of 0.10% p.a. if you open your term deposit, or renew it for another term, online. Both additional bonuses can be claimed simultaneously.

Interest can be paid monthly, annually or at maturity as appropriate. Often banks charge a different interest rate depending on the frequency of when interest is paid. However, Westpac currently offers the same rate regardless of how often you choose to have your interest paid. Choosing to be paid interest more frequently will result in a higher return, as you’ll benefit from the effects of compounding.

If you wish to terminate a term deposit early, you’ll have to give 31 days’ notice and apply to Westpac to break your deposit on hardship grounds only. The bank will decide if the hardship suffered is sufficient to release the term deposit funds early. A reduction in interest will result if you do request an early release of your funds.

Business and SMSF term deposits

As would be expected from one of Australia’s largest banks, Westpac Bank also offers term deposits for self-managed super funds and business term deposits. The interest rates offered on their commercial term deposit products are almost identical to those of their personal products.

These also include Farm Management Deposits, which are a specialist type of deposit designed to assist primary producers to manage their income. If you meet certain conditions related to being a farmer, you’re permitted to claim a tax deduction on income deposited in a Farm Management Deposit and only pay tax on that income when you withdraw it again. Westpac is one of only a handful of banks in Australia offering such deposits.

How do I open a Westpac term deposit?

To open a Westpac Bank term deposit, you’ll first have to be a Westpac Bank customer. To become a customer, you can either fill in an application form online, visit a branch or phone a Westpac branch and open an account over the phone.

You’ll need to provide 100 points of ID to open a bank account with Westpac. The most common forms of acceptable ID are:

your passport and driver’s licence
your passport and one other form of government-issued photo ID such as a student ID card or government identity card

Once you’ve registered as a Westpac customer and received your customer ID, you’ll be able to open a term deposit account. You will be able to fund this term deposit either from another bank account or from a Westpac account you may also have set up.

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

The key requirements for opening a term deposit with Westpac are:

you’ll need to be at least 18 years of age
to become a Westpac Bank customer, you’ll need to provide sufficient ID
you must be an Australian citizen, permanent resident or resident for tax purposes
have a minimum deposit of $5,000
open a term deposit account either online, in person or by phone

The pros and cons of Westpac Bank term deposits

PROS

Wide range of term options

Westpac Bank has a wide range of terms available for both personal and business customers ranging from less than one month right up to five years.

Bonus interest rates

You’ll receive a higher interest rate if you’re an existing Westpac customer or if you open or renew your term deposit online.

Monthly interest for same interest rate

You can set up your term deposit and arrange for your interest to be paid monthly without losing out on the interest offered, helping you maximise your savings.

CONS

Less competitive interest rates

Westpac’s interest rates are substantially lower than those offered by smaller banks or those which are online-only.

Minimum $5,000 deposit

If you have a smaller deposit, you’ll have to wait and save up for longer, as Westpac has a minimum term deposit of $5,000.

Minimum age limit of 18

Westpac has a minimum age limit of 18 to open a term deposit, which is older than some online banks which allow teenagers and kids to open a term deposit as young as 12.

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.