Term deposits can be an excellent long-term savings strategy, which stretch over years . However, the Bank of Sydney Term Deposit flips the script by only offering shorter terms, with options for 1 month, 2 month, 3 months all the way up to 13 months. So if you’re after a quick boost to your savings, it could be just the ticket!
On top of this, the amount your term deposit generates will depend on how much money you have placed in it, with higher interest rates being awarded to accounts with more funds in them.
There quite a few high earning options available, although the creme de la creme is the 10 months term deposit ($25,000 - $1,000,000), which comes with an interest rate of 2.75%.
The account also has an automatic rollover option. This lets you have the account working continuously without the need to constantly be re-upping on the same deal - just remember to double check that you’ll still be getting a competitive rate for the new term.
With that being said, if you are interested in withdrawing your funds make sure you wait until the maturity date, as withdrawing funds before your term period is up will significantly reduce the interest rate earned on the account.
Who it's good for:
If you’re already a Bank of Sydney customer and you’re looking for a short term deposit to boost your stash, look no further.
Keep in mind you won’t be able to have your term deposit pay out to another bank. This means you’ll need to sign up for a Bank of Sydney Transaction Account, which luckily doesn’t have a fee attached, so won’t cut into your savings.