As with many term deposits, longer terms offer better returns, this is the same with the Bank of Melbourne Term Deposit with a 5 year term offering a 2.80% interest rate. However, there’s also a number of shorter term loans, that have solid interest rates as well: For example 3 months pays 2.05% interest, 6 months pays 2.15% and 1 year pays 2.45%.
You’ll also have the option to have your plan automatically rollover, or you can choose to close the account and cash in your hard earned interest.
The Bank of Melbourne Term Deposit gives you the option of having your interest paid into an account at another bank and you can choose between having your interest paid either monthly, yearly or at maturity.
To get a term deposit you’ll need to deposit at least $1,000, but you won’t be able to deposit anymore than $250,000.
Who it's good for:
Term deposits are great for anyone who has a chunk of cash they know they aren’t going to touch and want to earn safe, easy, fee-free high interest. The Bank of Melbourne is suitable to long terms savers or those after a short term boost on their rainy day fund.
If you decide you want to withdraw your money from the term deposit account, you’ll have to give 31 days, notice you’ll also find the interest you earn drop significantly. So early withdrawals should be avoided if at all possible.