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Unlock high interest rates: First Option Bank's exclusive high-rate term deposit

Unlock high interest rates: First Option Bank's exclusive high-rate term deposit

01 Sep, 2023 - 4 min read

Unlock high interest rates: First Option Bank's exclusive high-rate term deposit

Attention savers! If you’ve been on the hunt for a competitive term deposit rate, you’ll want to pay attention to this. First Option Bank is offering an exclusive high rate term deposit account just for RateCity customers.

When it comes to growing your savings, a term deposit can be a game-changer. You are able to securely store your savings for a fixed period, with a guarantee that your investment will grow thanks to the locked-in interest rate.

This is why choosing a higher-rate option may be crucial to help your savings grow - among other key factors, like comparing fees.

First Option Bank is offering RateCity customers that apply before 15th December 2023 with balances of $5,000 or more:

5.15% on a 6 month term deposit
5.25% on a 12 month term deposit

Personal Term Deposit (At Maturity)

3 months
Automatic maturity rollover
Joint application available

Be rewarded for your saving, thanks to a bonus 0.10% loyalty bonus when you roll over your term deposit.

Interest rate

4.85%

for 3 months

Min deposit

$1,000

More details

Featured Judo Bank terms and conditions

How does this term deposit offer compare?

You may be wondering how this offer stacks up to the competition? An analysis of the RateCity database shows that 5.25% is the second highest term deposit rate available at the time of writing.

In fact, the 12-month term deposit interest rate is the joint-highest rate for all in this category on the RateCity database. And the six-month term deposit rate of 5.15% is also the joint-highest interest rate for this fixed period.

How much could you save with this term deposit?

This exclusive offer is designed to help grow your nest egg. So, how much could you actually save by utilising one of these fixed rate offers? You may be able to save hundreds, if not thousands of dollars, by locking away your savings in one of these higher-rate term deposit options.

How much you could save - 6-month term deposit

Initial balance	Interest earned
$10,000	$258
$20,000	$515
$50,000	$1,288
$100,000	$2,575
$200,000	$5,150

Source: RateCity Term Deposit Calculator. Based on initial deposit listed above with 5.15% rate on 6 month term.

How much you could save - 12-month term deposit

Initial balance	Interest earned
$10,000	$525
$20,000	$1,050
$50,000	$2,625
$100,000	$5,250
$200,000	$10,500

Source: RateCity Term Deposit Calculator. Based on initial deposit listed above with 5.25% rate on 12 month term.

How much could you save?

What to keep in mind

It’s crucial to compare more than just the interest rate of a term deposit when you’re researching options that may suit your needs and goals. It’s worth comparing key factors, such as the following:

Interest payment frequency

Interest is commonly paid monthly, annually, or at maturity for term deposits options. The frequency at which you are paid interest may play a role in how much you earn overall. Interest paid monthly may offer you more overall thanks to compound interest, but will typically come alongside a lower rate, and vice versa for interest paid at maturity.

Fees

While term deposits do not typically charge fees to open or maintain the account, you will typically be charged a break fee if you try to access your funds before the end of your term.

Break fees (or penalty fees) are typically calculated based on the amount withdrawn and the remaining term of the deposit, however these charges can vary by providers. If this is something you may be at risk of doing, it may be worth comparing lower-fee options.

The provider

The provider also plays a significant role in the right term deposit for you. For example, you may rely on face-to-face customer service, and prefer to choose a term deposit provider that offers branch access near to you. In this instance, an online-only term deposit provider may not suit you for the long term.

Whereas, if you do not need branch access, a provider like First Option Bank could be a competitive option to consider. This type of provider may be able to offer higher interest rates, as by not having branches they may have fewer overheads. Therefore they may pass these savings on to the customers.

Compare term deposits

Product database updated 27 Apr, 2024

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

Alex Ritchie

Personal Finance Editor

Alex Ritchie is a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over six years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.