Most term deposits follow the standard rule that you lock your funds away for a given term, and then score the interest when that term ends. This is not the case with the Bank First Interest First term deposit, which is perhaps the first term deposit offer in the market to pay interest upfront, on the first day of your term. This allows you to get the benefits of that interest straight away and either re-invest the or spend them.
The interest rate varies depending on the amount of money in the account; you’ll earn 2.40% on deposits of $500 - $49,999) and 2.55% on deposits $50,000 or above. Regardless of the amount in the account ($500 minimum), the term lasts for 5 months. If you do decide to withdraw your money from the account early, you must withdrawal it in full, and an interest reduction will apply.
This term deposit also comes with automatic rollover, so if you’re interested in re-upping on the same account, you can do so automatically. But the interest rates are not always the same on term deposit rollovers, so be sure to talk to Bank First before the maturity date, so you can be sure what you’re signing up to!
Who it's good for:
This term deposit is good for someone who is looking to use the interest paid up front immediately, either to be spent or to be reinvested. It offers the low risk, high return benefits of a term deposit, without the extended waiting period to get your interest earnings!
As you earn the interest upfront, this means that if you withdrawal the money early, you’ll have to pay back the interest you ‘didn’t’ earn.