Bank of Sydney ranks among the leading term deposit providers offering highly competitive rates on certain terms.
The bank offers term deposit products with short to medium terms, ranging from 1 to 13 months. Interest rates vary depending on the term length, though the bank is known for offering its top rates for accounts opened online.
Key Features of Bank of Sydney Term Deposits
| Minimum deposit | $1,000 |
|---|---|
| Maximum deposit | $1,000,000 |
| Term lengths | 1 month - 13 months |
| Interest paid | End of term |
| Early withdrawal | ✅8 days' notice required |
These are correct at the time of writing and are subject to change.
When the term deposit matures, the default option will be reinvestment of the principal for the same term at the prevailing interest rate. However, Bank of Sydney term depositors can also opt to partially reinvest (and withdraw the rest of the principal), add additional funds, invest for a new term, or withdraw everything.
Note that the default action will be implemented unless the depositor provides an instruction prior to the maturity date or within seven calendar days when the term ends.
Bank of Sydney Term Deposit Early Withdrawal Penalties
Redeeming a Bank of Sydney term deposit before maturity may trigger an early redemption withdrawal fee of $30 (correct at the time of writing). This will be deducted from the interest earnings.
Additionally, the interest payable on the amount withdrawn will also be reduced based on the percentage of time remaining on the term.
| Percentage of term remaining | Interest rate reduction |
|---|---|
| 0% to 19% | 20% |
| 20% to 39% | 40% |
| 40% to 59% | 60% |
| 60% to 79% | 80% |
| 80% to 99% | 90% |
Depositors terminating their accounts are required to provide the bank with at least 8 calendar days' advance notice to withdraw their funds. The funds will then be disbursed according to the customer's selected method on the 9th day following the early repayment request.
How to Open a Term Deposit with Bank of Sydney
Interested customers may open a term deposit account at any of Bank of Sydney's local branches or via its website for the 'online-only' term deposit product.
Applicants must be an Australian citizen or a permanent resident to be eligible. They then need to fill out an application with all the necessary details, and present two valid IDs such as:
-
Australian passport
-
Driver's licence
-
Or other government-issued ID
During the application, would-be depositors will be asked to provide instructions for when the term deposit matures. Options include reinvesting the principal and interest earned or 'decide later'.
A minimum deposit of $1,000 is required to open a term deposit account with Bank of Sydney.
While not a requirement, term depositors are highly advised to provide a tax file number (TFN) to prevent overpayment of tax on interest earnings.
