ANZ Term Deposit review

Term lengths

The interest rate on term deposits depends on how long the term is. Starting at one month or less, ANZ offer incremental term deposit products up to between 11 and 12 months. After that, there is a product for term lengths between 1 and 2 years, 2 and 3 years, 3 and 4 years and 4 and 5 years. Interest payments can be made monthly, quarterly, half yearly or annually, but for slightly discounted rates.

Deposit size

All ANZ term deposit products have a minimum deposit of $5,000. Deposits larger than $5,000 but less than $99,999 can be made through a simple application, either in person or online. For deposits of $100,000 or more, ANZ says customers need to contact bank representatives to receive specialised terms and rates.

Penalties for early withdrawal

There is a $30 withdrawal fee to take money out of an ANZ term deposit account. As with most term deposit products, if you choose to withdraw your money early, a portion of the interest you have accumulated is also deducted, based on the percentage of the original term that has elapsed.

ANZ has the following prepayment adjustment rates:

% of term elapsed

Prepayment adjustment (% of interest rate)

0% to 20%


20% to less than 40%


40% to less than 60%


60% to less than 80%


80% to less than 100%


For example, let's say you have a $100,000 term deposit invested with ANZ for one year at 5.45% p.a. You go to withdraw it after 100 days, after giving the appropriate notice.

You have earned a total of $1,493.15 in interest so far ($100,000 * 5.45%p.a /365 * 100). Since about 2% of the term had elapsed, the prepayment adjustment is 80%.

That means $1,194.52 ($1,493.15 * 80%) is deducted from your pay out. You would therefore only end up with $298.63 total interest.

Advance notice term deposits

ANZ also offers term deposit products with higher rates, in exchange for customers giving at least 31 days' notice if they intend to withdraw their money. ANZ is not obligated to allow a withdrawal any earlier than 31 days after notice is received.