Impact Term Deposit

A term deposit is a fixed term savings account that offers a safe, guaranteed rate of return on your money for the life of an investment. It can be an attractive option because the interest rate is usually higher than regular savings account rates. But if you withdraw some or all of the deposit before the agreed term finishes, you may incur a penalty that is deducted from the accrued interest. Learn more about term deposits.

All banking with us, including any fixed-term deposit, is underpinned by our responsible banking policy. You can know your money isn’t funding industries like fossil fuels, weapons or tobacco, and will support everyday customers.
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If you’d like your savings to help fund targeted positive impact, our new Impact Term Deposit supports a set pool of lending across specific environmental and social impact areas. These funds contribute to Sustainable Development Goals, including 11.1 (Ensure access for all to adequate, safe and affordable housing), 10.2 (Empower and promote the social, economic and political inclusion of all), 11.3 (Enhance inclusive and sustainable urbanisation), and 15.1 (Ensure the conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services). To learn more, read our Sustainability Funding Framework.
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Funds are used to finance or refinance lending across social and environmental asset categories that contribute to positive outcomes for people and the planet, and may support projects like building or upgrading green and energy-efficient homes, improving supply and access to affordable and accessible housing for people in need, land conservation and restoration, and charities and not-for-profits.

Financing is when funds invested in the Impact Term Deposit are allocated to new lending that Bank Australia has not yet funded.
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Refinancing is when invested funds are allocated to existing lending that Bank Australia had previously funded with other funds.
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Both financing and refinancing support Bank Australia to originate new lending with targeted positive impact.

As a customer-owned bank, we know that driving positive change is one of the key reasons our customers bank with us. That’s why, following an initial pilot in 2022-2023, we’re pleased to be launching our new Impact Term Deposit to support targeted impact for people and the planet while you grow your savings.

The Impact Term Deposit is a 6-month term deposit with no account fees, and interest paid at maturity.

No, the Impact Term Deposit has no account fees.

You can open an Impact Term Deposit with a minimum $500 deposit.

If you would like to cancel your term deposit after opening, or change the amount or term, you will have a grace period of 14 days from the date the term deposit is opened to provide alternative instructions without incurring a penalty. No interest is payable on withdrawn amounts during the grace period. Please call us if you want to make a change within this period.

Term deposits are for savers who are confident they won’t need to access their funds during the term of the deposit, so think of them as a long term savings account. If you wish to withdraw money from your term deposit before the end of its term or break a term deposit, you’ll need to give us 31 days notice.

The request for early withdrawal will incur an early release prepayment adjustment to the interest rate and a Term Deposit early withdrawal admin fee may apply. Please refer to Summary of Accounts and Deposit fees, charges and transaction limits for more information. Any funds you leave in the account will continue to earn interest at the interest rate originally agreed. The minimum investment amount of $500 must be retained in the term deposit.

Fourteen days prior to maturity, you’ll receive a written notification letting you know that your term deposit is due to mature and the options available to you. If we don’t receive any instructions when your term deposit reaches maturity, it will automatically be reinvested for the same term at the advertised interest rate at the date of maturity.

You have a grace period of 14 days from the date your funds are reinvested to make any changes including the length of the investment term or the frequency of interest payments or add/withdraw funds at no cost. Please call us or log into internet banking and set your instructions if you want to make a change within this grace period. In internet banking, you can set instructions to add/withdraw during the grace period, renew for the same term or close the term deposit and transfer balance to a linked Bank Australia bank account. The closure of the term deposit will occur at maturity of the term deposit.

Yes, Bank Australia deposits have the security of the Australian Government’s Financial Claims Scheme (FCS).
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A note that the FCS limit of $250,000 applies to the sum of an account holder's deposits under the one banking licence. Deposits with Bank Australia and Qudos Bank are treated as a combined balance, and one $250,000 FCS guarantee applies.