Westpac is not only the oldest bank in Australia, but it's also the country’s oldest company. It was first established in 1817 as the Bank of New South Wales. Following a series of mergers and acquisitions, in 1982 it changed names to Westpac Banking Corporation.
It’s now one of the big four banks in Australia, with almost 14 million customers, 1,200+ branches, 39,000 staff and 3,000+ ATMs.
Westpac offers customers term deposit accounts, as well as home loans, credit cards, personal loans, card loans and much more. Its subsidiaries include St. George Bank, Bank of Melbourne and BankSA.
Pros and cons
- Easy branch access
- Oldest bank in Australia
- Moderate to low rates
Westpac term deposits rates
for 6 months
Next rate increased
for 7 months
for 24 months
Automatic Maturity Rollover
Early Withdrawal Available
Is Covered By Government Gurantee
Joint Application Available
Maturity Alert By Email
Maturity Alert By Phone
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special0.30% p.a. term deposit for 5 months.
Term deposit interest calculator
Thinking about taking out a term deposit with Westpac? Use our term deposit calculator to see how much you can earn under different investment scenarios. You can also see how Westpac term deposits compare with other options.
Final balance at the end of term would be
at interest rate 0.15 %
About Westpac term deposits
Westpac offers term deposits with terms of 1 month to 5 years. Deposits up to $250,000 are guaranteed by the Australian government. Interest may be paid at maturity, monthly, or annually.
This “big four” bank does not charge any set up or monthly service fees. However, early termination or break fees may apply.
Westpac’s interest rates are not the highest on the market. However, being Australia’s oldest bank, a Westpac term deposit offers a certain level of stability and convenience to its customers. It also offers easy access to multiple branches across the country.
Westpac term deposits review
Westpac offers moderate to low term deposit rates. However, choosing a term deposit with Westpac means choosing a certain level of stability and convenience that comes with Australia’s oldest bank.
Westpac offers a range of financial products, meaning you can have your transaction account, home loan and a term deposit with the one lender. Plus, if you rely on face-to-face contact with your bank, choosing a Westpac term deposit means you’ll have access to over 1,200 branches, including branches in rural areas.
Learn more about term deposits
What can a Westpac business term deposit offer me?
If you have a business registered in Australia, you can earn fixed returns on your funds with a Westpac business term deposit. These accounts are offered for a minimum investment amount of $50,000.
Westpac business term deposit interest rates vary based on the term and interest payment frequency that you select.
If you are a Westpac customer and use online banking, you can apply for a Westpac business term deposit online. If you don't have a Westpac account currently, you need to speak with a business banker to discuss your term and repayment options. You can find details on this webpage and can ‘request a callback’ from someone in the business team.
If you are an existing customer you may be eligible for a bonus rate on top of the standard Westpac bank business term deposit rates. You can log in to your bank account to check whether your banking records qualify you for extra interest.
If you open a deposit and need to access your locked funds before the maturity of your term deposit, you must provide 31 days of notice, except in cases of hardship.
What are ME Bank’s term deposit interest rates for businesses?
ME Bank offers a variety of rates for business term deposits, depending on the amount of time you choose. You won’t have to pay any set-up or account-keeping fees for your business deposit. You can invest as little as $5,000 or as much as $2 million with a term duration between one and 60 months.
The ME business term deposit rate is determined based on the term and when you wish to receive interest payments.
While rates are set by the lender, you should always check with ME Bank to find out what the term deposit rates are, and which are applicable to your situation.
Which bank has the best term deposit rates?
If you’ve been shopping around for a term deposit, you might be wondering which bank has the best term deposit rates.
Term deposit rates will generally be affected by the amount you choose to deposit and whether you opt for a short or long term deposit.
Longer term deposits tend to have higher interest rates than shorter terms. The trade-off for earning a higher interest rate on your term deposit is that you can’t access your funds for the duration of the term deposit.
When comparing which bank has the best term deposit rates, it pays to do your research and compare how your funds will fare over the short and long term.
Unlike home loans or savings accounts which give you the option of fixed or variable rates, term deposits are always fixed, which means you get a guaranteed amount of interest over the term of the deposit.
Can I negotiate a fixed term deposit rate with the bank?
“Can I negotiate a fixed term deposit rate with the bank?” you may be wondering.
Many banks welcome negotiation when it comes to term deposit rates, especially with deposits of over $100,000. Even if your deposit is lower than $100,000, it may be worth a discussion with your bank.
Negotiating with your bank could secure you a higher fixed rate, which will earn you extra interest over your term. You may also discover bonuses or special offers you can acquire through your bank.
Securing the highest interest rate possible is the key to making the most of your term deposit. You may have compared deposits online or discussed your options with a financial adviser, but you also might be wondering about negotiation in order to get a better rate.
What is a term deposit account in a bank?
A term deposit account in a bank is a type of investment where you lock away a portion of your savings for a fixed period in return for earning a set amount of interest.
Opening a term deposit account in a bank is a safe way to earn a stable return on your investment of cash.
Term deposit accounts can be a good way to give your savings an extra boost without the need to actively watch or manage your funds during the term of the deposit.
Term deposit accounts in a bank are a popular type of investment because they’re safe and there’s very little risk that you could lose your money.
If you make a term deposit of up to $250,000 with an authorised deposit-taking institution, it’s guaranteed by the Australian government, which means there’s virtually no risk of losing your money and you’re guaranteed return.
Interest rates vary depending on the length of the term, the amount you deposit and the bank you choose.
What are the current AMP Bank business term deposit rates?
Term deposit interest rates are subject to frequent market change. To view the most current AMP Bank business term deposit rates, it’s best to view the provider’s website directly.
If you want to earn competitive rates on your fixed deposits for an amount between $100,000 and $500,000, AMP Bank deposit may worth considering. Term deposits with AMP Bank allow you to earn reliable returns for different tenures between one month and five years.
You can also choose when you want to receive the interest; monthly, quarterly, or half-yearly. If you wait until maturity, you’ll earn the full interest.
AMP Bank term deposits do not charge monthly maintenance fees. If you’re at least 13 years and an Australian citizen with a local address, you’re eligible for AMP Bank term deposit.
What are Bendigo Bank’s business term deposit rates?
Bendigo Bank offers businesses two types of term deposits - Standard and Gold. You can open a Standard term deposit by investing at least the specified minimum amount for a flexible investment period ranging up to five years. A Gold term deposit requires a larger minimum investment over a fixed term, which is currently one year.
However, you can’t add funds to a Standard term deposit after the first seven days, and any withdrawals before the review date need to be done on request. If you’ve opened a Gold term deposit, you can add more funds over the year, but withdrawals may be restricted just as with a standard term deposit.
A Standard term deposit’s interest rate depends on the amount deposited, the frequency of compounding interest, and the deposit term. Further, this interest rate may apply irrespective of how often interest is compounded. On the other hand, Gold term deposits usually offer a flat interest rate no matter how large or small the deposit, with the interest likely compounded every quarter.
To find out about Bendigo Bank’s current business term deposit rates, visit the banks’ website.
How do term deposits work?
Term deposits are flexible, low-risk, and earn you interest over time. But before you apply to open a term deposit, you might be wondering: how do term deposits work?
A term deposit is an agreement you make with a financial institution. This agreement will specify a certain amount of money that you will give the bank for a certain amount of time. In return, you’ll earn a fixed amount of interest on your deposit throughout your term.
Term deposits work as an exchange between a financial institution and an individual. You can think of your term deposit as a loan to the bank. Because you’ve loaned the bank your money, they’re willing to pay you interest on your deposit.
How safe is a term deposit?
You may have heard that a term deposit is a type of investment, different to a traditional savings account. All investment comes with inherent risk, so it’s important to know how safe a term deposit is before committing.
Term deposits offer a fixed interest rate which is guaranteed, so you do not have to worry about rising or falling interest rates when investing. You can add up how much interest you will earn over your fixed term, and this will be paid into your account per the conditions of your term deposit.
Term deposits with authorised deposit-taking institutions are also guaranteed for up to $250,000 by the Financial Claims Scheme, so you don’t have to worry about the bank collapsing either.
The only inherent risk of a term deposit is if you may need to break it early. If this happens, you will need to pay a breakage fee and possibly sacrifice some of your interest as a penalty. But if you know you can invest a certain amount of money for a fixed period of time, you can rest assured that a term deposit is a safe investment option.
What are Macquarie Bank’s business term deposit rates?
Macquarie Bank’s business term deposit rates vary depending on the duration you choose. Terms start at one month and go up to five years.
You can invest any amount between $5000 and $1,000,000 and you won’t be charged a fee. You’ll also have the flexibility of choosing when you want to receive the interest and have the option to roll over the balance once the TD matures. You can ask to have the interest deposited into another bank account if you wish.
The latest Macquarie Bank term deposit rates can be found here.
Are term deposits covered by the Australian government guarantee?
Yes, term deposits are covered by the Australian government guarantee.
Under the Financial Claims Scheme, the Australian government guarantees term deposits up to $250,000, capped at one person, per financial institution.
This means that your term deposit (if it’s $250,000 or less) is protected in the unlikely event the bank, building society or credit union collapses.
If you have more than $250,000 in a term deposit with one the one bank, for example, then only up to $250,000 of your principal is covered.
If you’ve got more than $250,000 and you wish to invest in a term deposit, you could consider dividing your money between term deposits and banks (limiting each deposit to $250,000 per bank).
That way all of your deposits are protected by the Australian government guarantee and you will not suffer any financial losses.
How long is a term deposit?
A term deposit refers to when you lock your money in an account for a certain period of time and at a specified interest rate. You will not be able to access your money for the length of the agreed term without incurring a penalty fee.
A long term deposit generally refers to a term deposit that lasts for more than 12 months – which in some cases may be as long as 10 years.
Usually, the longer you store your money, the better the interest rate you’ll get, so a long term deposit will tend to pay higher interest than a short term deposit.
At the end of the term, you can roll over the money (plus the interest you’ve made during the term), or you can withdraw it all.
What are the deposit rates offered by St. George?
If you’re looking to invest your spare business cash, St. George Bank has a variety of term deposit options. You can choose from terms between one month and five years. St. George Bank business term deposit rates vary depending on the duration.
You can open an account for $1000 to a maximum amount of $2,000,000. You can also opt to receive the interest amount either in your St. George Bank account or another bank account, either by cheque or direct credit.
On maturity, you can automatically rollover the term deposit or close the account. You also can close the account before maturity, however, you’ll need to give 31 days’ notice to the bank.
What should I know about ING’s business term deposit rates?
ING Direct offers several term deposit options for businesses looking to save over some time.
The business term deposit rates ING offers are compounded annually, meaning that the interest earned after the first year is added to the amount you originally deposited.
During the second year, the interest is calculated on the new amount. If you close the term deposit once it matures, you can ask for the money to be transferred to your business account either with ING or another bank. You can also renew the term deposit and choose to reinvest the total amount earned through the earlier term deposit. Alternatively, you can opt to renew with just the sum you originally deposited, and withdraw the interest earned.
You’ll need to deposit a minimum of $10,000 for at least 90 days if you open a term deposit with ING. In the current low-interest environment*, the annualised interest rate for a 90-day deposit is 0.05 per cent. This means you’d earn $1.25 over a three-month term if you deposit $10,000.
If you opted for a longer time frame, such as two years, you’d get an annualised interest rate of 0.30 per cent on your deposit. If you deposited $10,000, in two years the interest accrued would amount to approximately $60. Again, this is an estimate only based on current rates.
* Rates correct as of January 2021
How do you break a term deposit?
If you have found yourself in sudden need of funds, you may be wondering how to break your term deposit and access your savings.
If you need to break your term deposit, your first step should be to check the terms and conditions with your bank or provider. Many banks now require 31 days’ notice before you can access the funds in your term deposit, so in many cases you should first notify your bank that you will be breaking the term.
Once you have notified the bank and know when you will have access to your funds, you will then be liable to pay a breakage fee. Check with your provider to see how much this fee will be. You may also need to sacrifice a percentage of your interest as a penalty for breaking the term early.
Once you know when you will have access to your funds, and how much you will need to pay to do so, you are in a good position to decide whether you want to break your term deposit.