Bank First Interest First Term Deposit

2.55% p.a.5 months

no

 

Bank First Interest First Term Deposit Review

Rates and fees information correct as at 16 October 2018.

Review published: 4 May 2018

What's hot:

  • Interest paid upfront

  • 2.55% interest rate (deposits $50,000 and up)

What's not:

  • 31 days early withdrawal notice

Mozo snapshot:

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 2.55% (for deposits of 50,000 or more), as well as the option for an automatic rollover.

Key features:

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!

Any catches?

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.

The Mozo community has not yet rated Bank First for this term deposit.

Rates

  • 2.40% p.a. ($500 to $49,999)

    2.55% p.a. ($50,000 to $1,000,000)

  • yes

  • no

  • none

  • Interest credited on first day of investment term to linked transaction account.

About Bank First

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.

*Different interest rates apply to different amounts or different interest payment frequencies.

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