Mozo Review Bank First Interest First Term Deposit Review
Last updated: 25 October 2019.
Interest paid upfront
1.65% interest rate (deposits $50,000 and up)
31 days early withdrawal notice
Bank First’s Interest First term deposit is unique in the world of term deposits, in that the interest is paid to you at the beginning of the 5 month term, rather than at the end of each month or at the maturity date. It also comes with an interest rate of up to 1.65% (for deposits of 50,000 or more), as well as the option for an automatic rollover.
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 1.65% on deposits of $500 - $49,999) and 1.65% 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 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.
Rates and fees information correct as at 18 February 2020. Mozo has robust processes to ensure our site is updated to reflect the latest information from providers. There may be the odd occasion where updates are delayed, so please confirm information before purchasing.
1.50% p.a. ($500 to $49,999)
1.65% p.a. ($50,000 to $1,000,000)
Other financial bits
Interest credited on first day of investment term to linked transaction account.
*Different interest rates apply to different amounts or different interest payment frequencies.
How are Bank First term deposits rated by the Mozo community?
Formerly Victoria Teachers Mutual Bank, Bank First is an award winning financial institution with a competitive range of banking products including personal loans, home loans, term deposits and savings accounts. Founded by Australian educators in 1972, Bank First offers all Australians outstanding value but doesn't compromise on service or quality. Best of all, Bank First customers become equal shareholders which means all the benefits are directly returned to you.