BankVic provides its members seeking to grow their money beyond the usual savings account with term deposit products.

The bank's term deposit products are available on fixed terms ranging from 3 months to 5 years. BankVic term deposit rates are reasonably competitive, especially on popular terms like 6 and 12 months. However, some of the bank's products offer lower returns compared to market-leading providers, so it pays to check other available options.

Interest income is paid annually or at maturity, depending on the terms and the agreed schedule. Credit interest is paid to the depositor's nominated account with BankVic.

Key Features of BankVic Term Deposits

These are correct at the time of writing and are subject to change.

When the term deposit matures, it will automatically be renewed for a similar term at the prevailing interest rate unless prior instructions are provided two weeks before the end of the term.

Customers may renew, withdraw, or close their term deposit accounts during the seven-day grace period.

BankVic Term Deposit Fees

While BankVic doesn't charge early withdrawal fees, redeeming a term deposit before maturity may be permitted but the interest payable will be subject to an interest rate reduction.

• Early withdrawal fee - the difference between the contracted interest rate and the rate payable on the everyday transaction account

• Account keeping fee - $0

Other fees including dishonour fees, among others, may apply.

BankVic term deposit accounts are also subject to withholding tax. Additionally, up to $250,000 deposits are protected by the Australian Government guarantee.

How to Open a Term Deposit with BankVic

Interested BankVic members may apply for a term deposit account via the bank's website.

In addition to BankVic membership, to be eligible, applicants must:

• Be an Australian resident

• Hold an Australian driver's licence or passport

• Be over 14 years old

Applicants under 14 years may apply by filling out a youth membership application and certification forms.

A minimum of $5,000 is required to open a term deposit account with BankVic, and at least $2,000 for all subsequent deposits.

While not a requirement, term depositors are highly advised to provide their tax file number (TFN) to prevent overpayment of tax on interest earnings.