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What is a term deposit


What is a term deposit and how does it work?

Wanting to make a low-risk and simple investment? Here we look at the advantages of term deposits and ways to get the best bang for your buck.

What is a term deposit and how does it work?

A term deposit AKA a fixed-term deposit is where you invest money with a bank for a set amount of time, at a fixed interest rate. Once the term deposit reaches maturity, you can get your cash (and interest!) back or roll it over for another term.

What are the benefits of term deposits?

Here’s the top 4 pros:

  • Your return during the fixed-term is guaranteed
  • Some have no fees
  • Even if savings accounts rates start to dip, your term deposit rate will stay the same
  • It’s a simple, set-and-forget investment. No need to keep up with the share market.

Pro tip: Make the most of our competitive interest rates and zero fees when you apply for a
UBank Term Deposit.

And the cons?

You might be wondering, can you lose money with term deposits? The short answer is no, but some banks will charge a break fee if you take out your cash early. To make sure you understand how this works, have a squiz at the T&Cs. 

What should you look for in a term deposit?

Got your checklist ready? Here’s 5 ways to figure out which one’s a winner:

  • Compare term deposit rates to make sure you’re getting a great deal
  • Look at how long your money will be locked away and the amount of interest you’ll earn
  • Check if there’s a minimum deposit amount
  • Make sure the bank is covered by the Financial Claims Scheme
  • See if there’s a rollover option. That’s where you reinvest your money at the end of the term.

Pro tip: Our term deposits last up to 12 months, but if you roll over your full initial investment (or more) you’ll get our
Loyalty Bonus of 0.10% on top of the advertised rate.

What are the different types of term deposits?

Where a bank invests your cash is what sets them apart. Look at their website or start an online chat to ask about ethical investment options. At UBank, our Green Term Deposits help your money grow and create a brighter future. That’s because we invest in solar and wind energy projects, as well as low carbon buildings and transport. Win-win!

How much money can you make?

Use our term deposit calculator to see how you could supercharge your savings.

Term deposits are a no-stress investment for those of us who prefer a set and forget, low-risk option with a guaranteed return. And why not? Life’s just too short to be worried about your savings taking a dip. Once your money is locked away, kick back, relax and let time do the work.


Before making a decision to acquire UBank Term Deposit, you should obtain and consider the Terms and Conditions at

UBank Term Deposit is issued by UBank, a division of National Australia Bank Limited ABN 12 004 044 937 AFSL 230686.

The information contained in this article is of a general nature only. It doesn’t take account of any person’s objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate for your circumstances and seek independent legal, financial, and taxation advice.