24-35 Months Term Deposit 5.20% p.a. Interest Paid Half-Yearly & At Maturity, Minimum $5,000 Deposit @ Greater Bank

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puglikesabargain on 15/11/2023 - 16:10 greater.com.au (199 clicks)
Last edited 15/11/2023 - 23:06 by 1 other user

This offer, being one of the highest TD rates around, has been available for a few months now but it comes with a compounding interest option. While it may not suit everyone, this offer could be worthwhile for those who want to:

** stash away funds for a longer duration and earn a fixed interest rate (just in case the RBA official cash rate (OCR) is reduced sometime within the next year or so, or the banks decide to reduce their rates on 'at-call' High Interest Saver Accounts (HISAs) - for example the recent Virgin Money announcement regarding a 0.15% reduction in their Boost Saver rates on 27 November); and
** earn compounding interest over the term of the deposit (ie. by electing, when opening the account, for six-monthly interest to be directly-credited to the 'term investment' account rather than paid out).

Of course, a further RBA interest rate hike/s might eventuate but that risk may be offset by the compounding facility which, effectively, boosts the interest above the 5.20% p.a over the 24 to 35 month term. (ie by earning interest on interest).

Per the bank's site: "deposits up to $250,000 per account holder per authorised deposit-taking institution (ADI)~ are guaranteed under the Australian Government’s Financial Claims Scheme."

Fees

Monthly account-keeping fee — $0
Bank transfer fee — $8.00

Reduced interest rate applies if term deposit is broken or closed before the maturity date

Related Stores

Greater Bank

• 

  harvestloon on 15/11/2023 - 16:25

  What would the fortnightly minimum cost be?

• 

  jikijiki on 15/11/2023 - 16:59

  5.3% at ING: https://www.ing.com.au/savings/term-deposit.html

  • 

    puglikesabargain on 15/11/2023 - 17:01

    The ING offer is not a 2 to 3 year term, only a 12-months term and interest is payable at maturity……

    • 

      Gavman on 15/11/2023 - 18:26

      -1

      Why would u want ur money tied up for 2-3 years? Especially when rates likely to go up 3 or 4 more times in next 6-12 months (inflation still bloody high), end up getting short changed when you can get similar rate in high savings account with access to your cash at any time.

      • 

        puglikesabargain on 15/11/2023 - 18:33

        +1

        not everyone shares your view that rates will go up another "3 or 4 times" and if they did raise that sharply "in the next 6-12months", the economy would likely head for a recession - causing a rapid turn-around in rates (ie cuts). None of the banks/ leading commentators predict any more than 1 or 2 rate hikes from here on. Who knows? As I said, their offer may not suit everyone but gives certainty of a fixed interest rate up to 35 months.

• 

  StealSeeker on 15/11/2023 - 17:26

  +8

  I don’t see interest rates getting down any time soon. For at least one year. Better off putting it in ING or any other HISA where you get around 5.5%. Compounds monthly and gives you liquidity at the same time.

  • 

    FujiFruit on 15/11/2023 - 18:09

    Exactly

  • 

    XXRydeR on 15/11/2023 - 18:11

    -1

    Exactly, I don't see much benefit to locking funds away in fixed term deposits at the moment.

    Many banks offering 5+% interest on savings like ING, UBank etc.

    • 

      Jorkus on 15/11/2023 - 18:56

      I agree. The only reason to use a term deposit would be either to get a higher interest rate than rolling deposit or a bet against rates being lower in the future.

  • 

    coxymla on 15/11/2023 - 19:37

    +1

    You're not wrong, but the HISAs that earn >5% requires all sorts of hoops to achieve.

    • 

      XXRydeR on 15/11/2023 - 22:11

      UBank is pretty straightforward, deposit $200 a month.

  • 

    tedchan0728 on 16/11/2023 - 09:54

    Agreed

• 

  tedchan0728 on 16/11/2023 - 08:45

  -1

  I don't think this is good deal
  BOQ current interest rate is 5.4% for balance up to $50,000 tho

  • 

    puglikesabargain on 16/11/2023 - 08:51

    oh well, we will see where interest rates are sitting in 18 to 36 months time for deposits greater than $100,000 - I would rather be earning an effective compounding rate of around 5.54 percent p.a over 3 years than having money in a variable saver-account (eg Virgin, ING) that could fall below 5 percent. After all, BOQ have, and are are about to, drop rates on their saver products (eg BOQ Smart Saver and Virgin Money Boost Saver) https://www.ratecity.com.au/savings-accounts/news/highest-sa…. It all depends on individual circumstances.

    • 

      tedchan0728 on 16/11/2023 - 09:30

      BOQ only droped 0.1% from 5.50% to 5.40% tho

      • 

        puglikesabargain on 16/11/2023 - 09:39

        as I said, lets see where rates are in 18-36 months time for deposits >$100,000…. 5.54 percent effective rate (with compounding) over 35 months (<3 years) is pretty decent.

      • 

        puglikesabargain on 16/11/2023 - 09:45

        BOQ's brand "Virgin Money" is to drop 0.15 percent on their Boost Saver Account to a maximum 5.2%, effective 27 November….. (https://virginmoney.com.au/bank-and-save/accounts/boost-save…)

    • 

      StealSeeker on 16/11/2023 - 14:46

      If I want to lock my funds away for 36 months, I would rather put that into a S & P 500 ETF. It will generate more than 5.20% for sure considering the banks reduce interest rates.