Term deposits are a form of savings account. Your term deposit funds are invested for a specified term at a fixed interest rate.
When you apply, you choose how much you'd like to invest and how long you want the money invested. The minimum deposit amount is $5,000 and term lengths range from 30 days to five years. The interest rate you earn depends on the length of the fixed term you choose.
If you choose to withdraw some (or all) of your funds early, a reduction of interest will apply. Unlike a regular savings account, you must provide 31 days notice to withdraw your funds.
The end of your term is known as 'maturity'. At maturity you can:
- choose to withdraw some (or all) of your funds or
- choose to 'reinvest' your term deposit for a new term.