Term deposits FAQs

A term deposit is a saving account where:

1. Your money is invested over a fixed period of time. This is known as the ‘term’ and will generally last somewhere between 1 month to 5 years.
2. Interest rates are locked in for your chosen term and will not change.
3. Usually the money invested cannot be withdrawn unless you make a special request.  If you need your money before the end of the term, you will usually have to pay an administration fee and the rate of interest which you would have earned will be reduced.  Depending on the type of the term deposit, you may need to provide 31 days’ notice in advance before withdrawing.

• Protection against interest rate changes in the market. (Of course market rates can go up as well as down.)
• If you find yourself dipping into your savings often, this could be a good way to make your money less accessible.
• Term deposit interest rates are usually higher than regular saving or transaction accounts.
• Generally you will not have to pay start up, ongoing or annual account keeping fees.

• You will not be able to readily access your money during the term invested.
• If you wish to access your money before the term ends you may have to pay an administration fee, miss out on interest which you would otherwise earn and you may need to provide 31 days’ notice depending on the type of term deposit.
• If market interest rates increase while your money is in a term deposit you could miss out on the higher interest rates during the term.

Broadly speaking there are two different types of term deposits:

• Advance notice term deposit: A term deposit that requires that you give 31 days’ notice if you wish to withdraw before the term ends.
• Standard term deposit: Generally lasts somewhere from 1 month to 5 years. You can generally withdraw by making a request, without 31 days’ notice.

Some banks, like ANZ, offer you a choice between these two options.  Check with your bank to see which type of term deposit they offer.

• Always read the terms and conditions for the product that you are planning to apply for
• If you often find yourself spending money on things you don’t need, consider keeping the money out of easy reach with a long term deposit
• Put away what you feel you are comfortable with but think about keeping some funds aside for emergencies, bills and other expenses you think you may need to deal with
• Set your own reminders in your calendar or phone for when your term deposits mature and have a plan ready for what you will do with the funds
• When a term matures and you are thinking about reinvesting the funds, always check the interest rate offered for a further “rollover” term, since this may be different to the interest rate for the completed term.
• Consider staggering your term deposit investments so that your investments are regularly maturing. For example, you could split your money between 5, 4, 3, 2, and 1-year term deposits.  This means that you will have a proportion of your investment maturing each year and you can then decide whether to reinvest or spend it.

Choosing the right interest payment frequency for your term deposit is important as this can influence how much interest you earn at the end of the term. The options that are most commonly available are: monthly, quarterly, six monthly, annually, or at maturity. Keep in mind that not all payment frequencies are available for all terms.

The principal differences are:

• Termination with 31 days’ notice. If you wish to access your funds in an ANZ Advance Notice Term Deposit prior to the end of your investment term, you will be required to give ANZ 31 days’ notice. Before maturity or after your grace period^disclaimer ends, any request for an early withdrawal or transfer of all or part of your funds in your ANZ Advance Notice Term Deposit will be returned to you 31 days after the date we received your request. If the 31st day falls on a non-business day, your funds will be returned the next business day. If the maturity date is before the expiry of the 31-day notice period, your funds will be returned to you on the maturity date. If you are suffering financial hardship, please contact ANZ to discuss whether earlier disbursement is possible.

• Interest rates change with each rollover. If you consent to reinvest your ANZ Advance Notice Term Deposit at maturity in a new ANZ Advance Notice Term Deposit, then ANZ will do this, and the interest rate applicable at reinvestment will apply to the new term. This interest rate may be lower or higher than the interest rate on your current ANZ Advance Notice Term Deposit. Higher interest rates may be available for other investment terms or for a different deposit product with a comparable term. Please contact us within the grace period^disclaimer to obtain details of other current interest rates and any special offers. If your circumstances change or this product is no longer suitable for you, please contact ANZ at or prior to the maturity date, or within your grace period^disclaimer to make alternative arrangements.

The minimum investment amount for an ANZ Term Deposit and ANZ Advance Notice Term Deposit is $5,000.

Depending on the investment term, interest payment frequency can be monthly, quarterly, semi-annually, annually or at maturity. Please check the ANZ Savings and Transaction Product Terms and Conditions (PDF 408kB) for details.

ANZ Advance Notice Term Deposits are priced more competitively to recognize the restriction of 31 days’ notice to withdraw or transfer your funds before maturity. 

The early withdrawal or transfer of your funds will incur an interest reduction, and an administration fee is applicable. See ANZ Savings and Transaction Product Terms and Conditions (PDF 408kB) for more information about ANZ’s fees and charges. 

ANZ Advance Notice Term Deposits are suitable for customers who do not have a foreseeable need to access their funds prior to maturity. However, if you are facing hardship, you will need to call ANZ’s dedicated Hardship team (1800 092 536 between 9am and 6pm AEST, Monday to Friday) to discuss your situation and options.

Yes. ANZ will send you a Record of Confirmation outlining your break request with your investment and disbursement details. If you cancel your break notice, ANZ will send you a Record of Cancellation to confirm your break notice cancellation.

A break request can be cancelled up to two business days prior to the completion of the 31 day notice period (disbursement date). If the details of your break request need to be changed after the request has been submitted, you will need to cancel the break request and submit a new request. This will reset the 31 day notice period to start again.

Yes, your funds will earn interest during the notice period. 

Once notice is received, ANZ will calculate the date on which the funds will be available. This cannot be extended. However, if the day of disbursement falls on a non-business day then the funds will be disbursed on the next business day.

If you wish to access your funds in a Notice Term Deposit prior to the end of your investment term, you will be required to give ANZ 31 days’ notice. Before maturity or after your grace period^disclaimer ends, any request for an early withdrawal or transfer of all or part of your funds in your Notice Term Deposit will be returned to you 31 days after the date we received your request. If the 31st day falls on a non-business day, your funds will be returned the next business day. If the maturity date is before the expiry of the 31-day notice period, your funds will be returned to you on the maturity date. If you are suffering financial hardship, please contact ANZ to discuss whether earlier disbursement is possible. Any disbursement of your funds will be as in accordance with your agreed payment instructions and fee and charges may apply.

There are usually a few options you can take when your term deposit matures. Make sure to think about this well in advance before the term ends.

• Roll over – you can usually choose to have your term deposit automatically reinvested so that you do not need to come into the bank each time. Compare what rates are being offered for other term deposit products to see if you would like to change your investment.
• Reinvest elsewhere - you could withdraw at maturity to reinvest elsewhere.
• Withdraw and use.

If you do not wish your term deposit to be automatically reinvested, make sure you contact your provider either before or during the ‘grace period’ following the maturity of your term deposit. The grace period is a period of seven days starting from the maturity date in which you can choose to withdraw some or all of the value of your term deposit, change the term and/or top up your term deposit.

Rollover instructions are required at account opening for an ANZ Advance Notice Term Deposit. You have a choice to rollover your ANZ Advance Notice Term Deposit or disburse your funds at maturity. Your instructions can be changed at any time prior to maturity.

Yes. You can contact us via Internet Banking, phone or visit a branch to roll your ANZ Term Deposit to ANZ Advance Notice Term Deposit during the 7 day grace period^disclaimer of your maturing ANZ Term Deposit.