How does a term deposit work?

A term deposit offers a fixed interest rate for a fixed term. Interest rates differ as they depend on both the term and the amount of the deposit. For details, please see the Super Members Term Deposit.

Who can open a term deposit?

Anyone who is an Australian citizen, an Australian permanent resident or an Australian resident with an Australian residential address (for taxation purposes) over the ages of 12 can apply.

To open an account, you must be the individual opening and using the account for personal use (you cannot open or use an account for business or trustee purposes).

How do I open a term deposit?

Simply apply online or print out, complete and post an application form back to us. If you are an existing ME Bank customer, you can apply for a term deposit over the phone - just call 13 15 63.

Your account can only be in a single name, and your opening deposit must be made via direct debit (a cheque deposit cannot be accepted).

How much money do I need to open my term deposit?

Unlike many other banks, ME Bank requires a minimum deposit of just $1,000 to open a term deposit account.

What is the maximum deposit amount for term deposit?

There is no maximum deposit amount for term deposit accounts - you can put in as much money as you like! However, for amounts greater than $500,000, please contact us to find out what interest rates will apply.

What are the terms available?

You can choose your own term between 1 month (30 days) and 24 months (730 days). You may even select a maturity date that suits your own investment goals.

Can I have more than one term deposit?

Yes, you can open as many term deposit accounts as you like. Simply fill in another application.

Can I open a term deposit for business use?

This particular account is for personal use only. If you're a business customer looking to open a term deposit, please see our Business Term Deposit information.

How long will it take to open my term deposit?

Your account will open within three business days from when we receive your completed application form and any supporting documentation.

How do I deposit money into my term deposit?

We can debit funds directly from your nominated bank account, or we can accept a cheque for the initial deposit (cheque deposits are not available for phone applications from existing customers).

Are there any fees on my term deposit?

Currently, you can sit back and enjoy zero bank fees on this account.

Will I be able to view my term deposit through online banking?

Yes, once you have registered for our online banking services.

What interest rate will I receive?

You will receive the interest rate applicable on the day we receive your application (with supporting documentation) required to open your account.

What interest rate will I receive if I rollover my term deposit at maturity?

You will receive the interest rate applicable on the day your existing term deposit account matures.

When will I start earning interest?

You will earn interest from the day your term deposit is opened and an initial deposit is made.

When will I receive interest?

For terms of 365 days or less, interest is calculated daily and credited at maturity. For terms of 365 days or more, interest is calculated daily and: 

  • credited to your nominated account 365 days from the date the account is opened, and 
  • credited at maturity.


How will interest be paid?

Once your term deposit matures, you can choose to have the interest reinvested into your new term deposit or have it paid into your nominated account.

Will I get a term deposit certificate when my application is complete?

Yes. We will send you a confirmation letter once your account has been opened, detailing your investment amount, the interest rate and the maturity date.

Will you let me know before my term deposit matures?

Yes. We will send you a maturity advice letter approximately 10 business days before your account matures. You can then decide if you would like to have it paid into your nominated account.

What happens to my term deposit at maturity?

The default option is that your term deposit will automatically be reinvested into a new term deposit (of the same term, at the interest rate applicable on the day your existing term deposit Account matures).

Alternatively, you may choose to have it paid into your nominated account. Simply complete a Change of Term Deposit Details Form.

Can I break my term deposit before it matures?

Yes. You can withdraw your term deposit before it is due to mature, but you will be subject to an early withdrawal percentage rate up to the amount of accrued interest. Note: A partial withdrawal is not possible.