Term deposit guide

What is it?

An account that locks your money away for a period of time between 3 months and 3 years and pays you extra at the end. Yep, that’s right; we pay you, just for keeping your money with us. This money is called interest.

For example:
If you open a term deposit with $1,000 for one year with an interest rate of 7.60% pa, your account balance will look like this:

Start: $1,000 (your capital)                                                  End of year 1: $1,076

 
If you leave your money in the term deposit for even longer, you get interest on top of your original amount (called the capital) and the interest you’ve earned the previous year. This is called compound interest.
Still using the previous example:

End of year 2: $1,157.78                                                  End of year 3: $1,245.78

That’s an extra $245 without having to do anything!

To open a term deposit, download a form and ask mum or dad to help you.