Term Deposits

Got Questions? Here is our Term Deposit FAQs

• What Are Term Deposits?

  A term deposit is an investment account that can allow you to earn higher interest rates by investing your money for a fixed period of time.
  
  They are a set and forget type of investment account. Once your term starts, your money will be invested at the agreed interest rate until the end date of the fixed period. When the term finishes, you can withdraw everything plus interest earnt, reinvest it, or add more money and keep growing your savings.

• How is the interest calculated and paid for my Term Deposit?

  Interest is calculated daily, and you can choose to have it paid monthly, annually or at maturity depending on the options available for the term you choose.

  Terms under 6 months will have interest paid at maturity.
  For terms 6 months or greater up to 12 months, you have the option to have interest paid monthly into a separate SCCU or external savings or transaction account; or at maturity.
  
  While for terms over 12 months, you have the option to have interest paid monthly into a separate SCCU or external savings or transaction account; or once at 12 months for tax purposes and the remainder at maturity. Having all interest paid at maturity is not available for terms greater than 12 months.

• Can I compound my interest if I get paid monthly interest?

  No, you cannot compound the interest into your existing Term Deposit if you choose to have interest paid monthly. 

  Compound interest happens when the interest you have earnt earns interest on itself. However, the monthly interest needs to be paid to a separate SCCU or external savings or transaction account. It cannot be paid into the existing Term Deposit account, and therefore it will not compound.

  When your Term Deposit expires, you can add the interest you have earnt to your initial investment and reinvest the entire amount.

• What is the different between a Term Deposit and a savings account?

  Term Deposits are a type of standalone fixed-term investment account. The interest rate is guaranteed and fixed to the term you agree to. A savings account on the other hand, has a variable interest rate, which could regularly fluctuate. 
  A Term Deposit also does not require to be linked to other accounts, different from a savings account that must be linked to a transaction account to be managed.

• Who Can Open a Term Deposit?

  Term Deposits are available to individuals over 14, sole traders, family trusts, and self-managed Superannuation funds.
  
  They are also available for businesses entities, including Non-For-Profit and Trusts under our Business Term Deposit. These, however, are limited to a maximum of combined funds of $2M across all SCCU products. Please visit our Business Term Deposit page to find out more.
  
  Applicants for personal and business Term Deposit must be an Australian citizen or permanent resident, hold an Australian address, phone number and bank account. 

  View our Target Market Determination (TMD) to confirm if this is the right product for you.

• Can I open a Term Deposit in someone else’s name?

  No, you cannot open a Term Deposit in someone else’s name.
  If you wish to open an interest-bearing account for your kids or grandkids, we recommend you have a look at our Little Star Saver Account.

• Can I access/withdraw my money early?

  Yes, you can. Or you could partially withdraw throughout the term. However, Term Deposits are designed to be held to maturity.
  
  Early withdrawal, whether partial or full, will incur a $30 administration fee and the funds you withdraw will only receive an interest rate of 0.10%p.a. applicable for early redemption, bringing down your return.
  
  If doing a partial withdrawal, the remainder funds will continue to earn the same interest rate you initially locked into until maturity. 

  While we encourage you to keep your funds invested for the full term, we understand that circumstances may change. Should you need to do withdraw your funds early, you can do so by providing us with a 31-days’ notice by calling us at 1300 360 744 or visiting a Financial Service Centre closer to you.
  
  View T&Cs and Fees & Charges for all details.

• Can I add funds throughout my Term Deposit?

  No, you cannot add funds during the term. Alternatively, you can open multiple terms deposits so your money is spread across different maturities. Top ups are only possible upon renewal for another term once your Term Deposit reaches maturity.
  
  Alternatively, you could consider opening our Star Saver account where you could add funds and be rewarded with a bonus rate if meeting the requirements.  Visit Star Saver to learn more.

• How will I know my Term Deposit is coming to maturity?

  You will receive confirmation of the date when you open your Term Deposit, and we will notify you in advance of your pending maturity.
  
  Our team will also reach out to you leading up to the maturity date of your Term Deposit to discuss your next steps.

• Is my Term Deposit protected by the Government?

  Our Term Deposits are guaranteed by the Australian Federal Government’s Financial Claims Scheme (FCS) of up to $250k, the same as they would be with other financial institutions.

  Under the Financial Claims Scheme (FCS), deposits are protected up to a limit of $250,000 for each account holder at each bank, building society and credit union (also known as authorised deposit-taking institutions or ADIs) that is incorporated in Australia and authorised by APRA. 

  For more information, visit https://www.apra.gov.au/financial-claims-scheme-0