Heritage Term Deposit

Rates and fees updated 22/10/2014

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Introductory Interest Rate-
Interest Rate6.15% p.a.
Monthly Fee$0
Minimum Balance$1,000

If you are considering a term deposit, you have multiple options to choose from. The Heritage Term Deposits offers some of the best interest rates in Australia. Investors will also appreciate its flexibility in terms of term lengths, investment amounts, and payment options. The only thing which isn’t flexible with Heritage Term Deposits is the interest rate!

Interest Rate

When looking at the interest rates of any term deposit, always remember that you are looking at the rates per annum. So, while the interest rate for a 3-month term deposit may be listed as, for example, 5.7%, you are only getting roughly a quarter of that as 3 months if is a quarter of a year.

Heritage’s Term Deposit is available for periods of 1 to 60 months. The interest rate varies depending on the period and money invested. Interest rates are fixed. For shorter terms, interest is paid at maturity whereas longer terms allow for annual payment. Other payment terms may be available but may result in a reduced interest.

Terms & Conditions

There are no fees for opening or keeping a term deposit with Heritage. There are no fees should you wish to withdraw your term deposit before its maturity. However, early withdrawal will result in the reduced interest rate of 0.10%.

Pensioners can have interest paid fortnightly, but this will result in a reduction of 0.15% from the listed interest rate. Interest can be paid monthly or quarterly, but this results in a reduction of 0.10%.

Pros

Heritage offer some very competitive rates. For large investments, Heritage often offers much better rates than you would find with the competition. Keep in mind that Heritage’s term deposits are on fixed rates, unlike many other banks. This way, you will always know exactly what interest your investment is getting you.

The allure of Heritage’s term deposit isn’t just in the high interest rate, but also in the flexibility. You can open a term deposit for just $1,000 and there are many available terms. They even let you choose a term of just 1 month. It is also nice that you do not have to ever worry about paying fees for your Heritage term deposits, even if you decide to withdraw the deposit before its maturity.

It is worth noting that Heritage is known for having a very friendly and helpful customer service staff. While you probably won’t have too much interaction with them after setting up your investment, it is nice to know that they are there if you need help. As you can expect from a major banking institution, Heritage protects your term deposit under the terms of the federal law.

Cons

While a Heritage term deposit offers good rates, you will be able to find other competitive deals if you do a bit of shopping around. Some banks will go above the maximum interest rate offered by Heritage (though it usually isn’t much better). As expected, the rates for short terms and low amounts of money are not usually the best option. In many cases, it would make more sense to open up a savings account instead.

Make sure that you are asking whether your interest rate is promotional or not. A promotional interest rate is basically a special rate that Heritage sometimes offers to new customers. Once the term runs out, the rate may not renew and your deposit could revert to a lower rate.

Who is the Account for?

A Heritage term deposit is best suited for people with at least $5,000 to invest for a minimum period of 6 months. Otherwise, you will likely find better deals elsewhere.

Minimum Requirements

The minimum requirement for opening an account is $1,000 for a period of 1 month. You must be an Australian citizen to qualify.

Conclusion

Heritage has very competitive interest rates for their term deposits and you will be hard pressed to find a better deal with other banks. Most customers will appreciate the amount of flexibility that they offer. Ultimately, this flexibility is one of the main reasons to choose Heritage over a similar term deposit with a different bank.