When it comes to term deposits, sometimes your best bet is giving the big four banks a miss and taking a look at what the smaller ones have to offer. Of these, the Bank of Sydney Online Term Deposit is a top choice for savers, particularly if they want to lock their funds away for a year or less.
There are a range of term options available, meaning you have plenty of choice when it comes to how long you want to keep your savings stashed away. As for rates, a respectable 2.12% p.a. is offered for one month terms, but it’s at the six month mark that things get really impressive. If you plan to lock away your savings for half a year, your interest jumps to 2.85% p.a.
There are no account keeping fees and interest is paid out once the term deposit reaches maturity, though the option to receive monthly payments exists for balances greater than $25,000. Rollover is automatic, so make sure you let the bank know what you want to do once your deposit matures.
Just remember that interest can’t be paid to another bank, so you’ll need to have an account with Bank of Sydney to take advantage of this deal.
Who it's good for:
The Bank of Sydney Online Term Deposit is perfect for Aussies who want a short term deposit with excellent returns to jumpstart their savings.
As with most term deposits, there’s a minimum investment amount of $1,000. You’ll also want to avoid dipping into your funds before they mature, as you’ll face a $30 fee and a reduction in your interest payout.