Australian Unity offers customers seeking to grow their money beyond the usual savings account with term deposit products.
Depositors can open an account with the bank for a minimum deposit of $5,000 and choose a term from 1 month to 5 years.
Australian Unity term deposit rates are fairly competitive, especially on popular terms like 3, 6, and 9 months.
Interest income is paid at maturity for deposits on fixed terms of less than 12 months. Longer-term depositors may choose to receive their interest earnings monthly, quarterly, semi-annually, or annually, depending on the term length.
Key Features of Australian Unity Term Deposits
| Feature | Details |
|---|---|
| Minimum deposit | $5,000 |
| Term lengths | 1 month - 60 months |
| Interest paid | Monthly, Quarterly, Semi-Annually, Annually, End of term |
| Early withdrawal | ✅31 days' notice required |
These are correct at the time of writing and are subject to change.
When the term deposit matures, depositors may opt to withdraw both the principal and interest earnings or reinvest in full at the prevailing interest rate.
Australian Unity Term Deposit Fees
Redeeming a term deposit before maturity may be permitted, but the interest payable will be subject to an interest rate reduction.
Early redemption rate reduction in Australian Unity Bank varies depending on the duration the term deposit has been held.
| Held for term | Reduction in rate |
|---|---|
| 0-10% | S1 savings rate |
| 11-20% | 80% |
| 21-40% | 60% |
| 41-60% | 40% |
| 61-80% | 20% |
| 81-99% | 10% |
According to Australian Unity, if the bank agrees to an early withdrawal before the maturity date, a break cost will be charged based on the replacement costs and other factors arising from the transaction.
The term deposit accounts are subject to withholding tax. Up to $250,000 deposit per account holder is protected by the Australian Government guarantee.
How to Open a Term Deposit with Australian Unity
Interested customers must have an Australian Unity transaction account to open a term deposit with the bank.
Once the transaction account is opened, customers may open a term deposit (select the term and interest payment schedule) through Internet banking. From there, transfer the funds to be invested into the term deposit from the Australian Unity transaction account.
To apply, you must provide:
-
Proof of identity (driver's licence, passport, etc.)
-
Australian Unity transaction account details
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At least a $5,000 deposit
Term depositors are highly advised to provide their tax file number (TFN) to prevent overpayment of tax on interest earnings.
Please note that Australian Unity has announced plans to transfer its banking operations to Bank Australia by late 2025. This transition may affect the availability of certain products and services. Ensure you stay informed about any changes that may impact your term deposit management.
