BCU Bank offers customers seeking to grow their money beyond the usual savings account with term deposit products offering fixed returns and flexible terms.

The bank has Standard term deposits, with terms ranging from 1 to 36 months, and pays interest at maturity or annually (depending on the term length).

Those looking for a regular income stream via interest earnings may open a Regular Income term deposit, which pays interest monthly. Term ranges from 3 to 36 months.

BCU Bank also offers a specialised term deposit product for customers over 55, whose interests are also paid more regularly than a standard TD - either fortnightly or monthly, depending on the term length and the agreed payment frequency.

BCU Bank term deposit rates are relatively competitive, particularly on short-term deposits like 3 months, and its niche 5-month TDs.

For other terms, however, their rates may fall within the mid to lower range compared to other providers.

As an authorised deposit-taking institution (ADI), deposits in BCU up to $250,000 per account holder are protected by the government's Financial Claims Scheme.

Key Features of BCU Bank Term Deposits

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.

The term deposit investment - principal and interest, if applicable - will automatically roll over into a new term on its maturity date if no instructions were given to the bank.

BCU Bank Term Deposit Fees

BCU Bank doesn't charge any account-keeping or ongoing fees to its term deposit customers. However, any government duty, tax, or charge imposed by law in respect of the account and its operations will be shouldered by the depositor.

Depositors may also withdraw early from a term deposit account prior to the maturity date, but the interest payable will be subject to a rate reduction, depending on the length the deposit was held.

If redeemed…

Within 30 days of opening the account - no interest will be paid

More than 30 days after the opening of the account - interest will be calculated on the date of the early redemption at the lower of either:

• The current interest rate applied to the account, or

• The interest rate most recently published by the Reserve Bank of Australia

How to Open a Term Deposit with BCU Bank

Existing customers who want to open a Standard Term Deposit may log in to the bank's website or mobile app and go to 'Apply' or 'Open an account'.

Meanwhile, those who want to open a Regular Income Term Deposit or an Over 55 Term Deposit may call, send a message, or pop in at any BCU Bank branches.

New customers, on the other hand, must set up a transaction or savings account first before they can open a term deposit account with the bank.

To be eligible, you must:

• Be at least 18 years old

• Be an Australian citizen or a permanent resident

• Have the minimum deposit required

While not a requirement, term depositors are highly advised to provide their tax file number (TFN) to prevent overpayment of withholding tax on interest earnings.