CBA offers online term deposit

The Commonwealth Bank is offering an online term deposit facility allowing customers to apply online and get the account up and running without submitting written application forms.

The Internet-based term deposit currently pays 4.15 per cent to 5.10 per cent on sums of $5,000 and above for term ranging from 3, 6, 12 and 24 months. And a BPAY facility has been created to make the transfer of funds more efficient.

Online savings accounts have been offered by a number of financial institutions for a couple of years now.

ING Direct, HSBC, AMP and St George have been offering high interest rates at call which are in many cases higher than the rates offered on conventional term deposits.

According to the Reserve Bank of Australia, funds in term deposits have increased by 22 per cent over the past five years and now total more than $155 billion.