For personal accounts, our minimum term deposit is $1,000, and there is no maximum amount you can get started with.
Learn more about our term deposits.
For business accounts, our minimum term deposit is $2,000, and there is no maximum amount you can get started with.
While it’s not possible to add funds during the term, you can add any funds at maturity or during the grace period for the next term.
We’ll send you the form via email, up to a month before the maturity date to ask you what you’d like to do. If you are the owner of the account, not a signatory, you will have the option to self serve and add funds via online banking, or you can note on the form that you’d like to add funds, and send it back to us
While interest rates for new term deposits may change during your term, this will never affect a deposit that is part way through its term. That rate is locked in for the agreed amount of months.
If you require your funds before the maturity date of the term, either partially or in full, a pre-payment adjustment and an early redemption fee of $30 will apply.
| Percentage of the term lapsed. | Adjustment to be applied as a % of your interest rate. |
| 0% to less than 20% | 90% |
| 20% to less than 40% | 80% |
| 40% to less than 60% | 60% |
| 60% to less than 80% | 40% |
| 80% to less than 100% | 20% |
Prepayment adjustment example: For a 5.00% p.a. one-year term deposit of $50,000, where the entire account balance was withdrawn after 4 months:
- Divide the original interest rate by 365 to get the daily interest rate 5.00% ÷ 365 = 0.0136986%
- Multiply this by the amount of the term deposit to get the interest earned each day $50,000 x 0.0136986% = $6.8493
- Multiply this by the number of days for which the funds were deposited $6.8493 x 122 days = $835.62
- Find the percentage of the original term that has elapsed 122/365 (days) = 0.33 (33%). As 33% of the original term has passed, the interest will be reduced by 80%.
- Multiply the interest earned by 80% (0.80) to get the prepayment interest reduction $835.62 x 0.80 (80%) = 80% $668.49 (rounded to two decimal places).
This is the interest you will lose if you close your term deposit early. These calculations do not include the $30 early withdrawal fee.
Note that the calculation above is intended as a guide only and may vary slightly from your actual interest earned due to the rounding used in the example.
If you would like a form to complete, please contact us.
No, this is not permitted.
From 15th of April 2025 the grace period will be 7 calendar days.
If you have already provided us instructions prior to or during the grace period (e.g. a new term), then the ability to add or withdraw funds will not be available in online banking. You will be required to complete a new written request, you can do this by contacting us, or accessing the form sent prior to maturity.
Yes, from 15th of April 2025 a joint owner with single sign on access can add deposits and withdraw via online banking.
From 15th of April 2025, if you are an owner of the account (not a signatory) and would like to add funds or redeem a portion of your term deposit to or from a Defence Bank savings account, you can do so via online banking:
- Select transfer, (found by selecting the three dots beside the relevant term deposit).
- Select 'Deposit to' or 'withdraw from'.
- Select your nominated Defence Bank deposit account to receive the funds by selecting the drop-down box beside the visible deposit accounts.
- Nominate the amount to be paid.
- Select Pay now.
- Review payment details and either select back to amend or Confirm to complete the payment.
You can then select make another payment to process another deposit or withdrawal. If you have finished click on the Defence Bank logo to go back to your list of accounts.
Yes you will need to leave a minimum of $1,000.
There is no penalty or fee.
No, not via online banking.
However, you can set up your term deposit to redeem at maturity to a Defence Bank savings account by completing a withdrawal request via online banking. If you wish to fully close your term deposit during the grace period, you will need to request closure by contacting us.
No, if the term deposit has just been opened you can’t access it in online banking. You can however contact us and provide us instructions to do so.
Yes, provided it’s within the grace period and you leave at least $1,000. Requests outside the grace period, you will need to contact us.
From 15th of April 2025, you can still add or withdraw funds right up to the last day of your grace period in online banking. If you don’t have online banking, you are required to provide instructions to us before the public holiday to avoid any penalties.
No, the online feature will not be available. You will need to contact us to make this transaction.
Currently only an individual account holder (an account in the name of one person only) can make changes to term deposit renewal instructions via online banking.
Joint account holders cannot change the account to redeem in online banking, however, they can view the renewal information.
A signatory to the account can view the account in online banking, but cannot see the renewal instructions nor make changes in online banking.
Power of Attorney (POA) holders can view the renewal information, but, cannot make any changes in online banking.
When you sign into online banking with your individual membership number, you are a signatory to your business account and so cannot make changes to your business term deposit renewal instructions in online banking.
This is the same for Retirement Savings Account (RSA) account holders, you will not be able to see the renewal instructions nor make changes in online banking for an RSA term deposit.
When you sign into online banking with your individual membership number, you are a signatory to your child's accounts and so cannot make changes to your childs term deposit renewal instructions in online banking.
Prior to the maturity date, if you are the sole account owner, you can elect to redeem to a Defence Bank savings account in your name at maturity.
Prior to the maturity date, if you are the sole account owner, you can elect to renew your term deposit for the same term at the rate available on the day of maturity.
From 15th of April 2025, at the maturity date or during the ‘grace period’, you are unable to change your instructions to redeem in full via online banking. Any instructions loaded in online banking during the grace period will be processed at the next maturity.
From 15th of April 2025, at maturity, you can chose to add or withdraw funds from a term depoist that has renewed so long as you have not provided instructions to us to process a change and you leave the minimum $1,000.00 in the account.
If you are the sole owner of the account (not a signatory or joint account holder) and would like to redeem all of your term deposit to a Defence Bank savings account, you can do so via online banking:
- Select renewal details, (found by selecting the three dots beside the relevant term deposit).
- Select 'No' when asked if you want to renew.
- Select your nominated deposit account to receive the funds by selecting the drop-down box beside the visible savings accounts.
- Select save changes.
Your new instructions will now show as having been updated.
These instructions can be revoked or amended at any time prior to the maturity of the term deposit.
Currently the term deposit self-serve option is only available in online banking.
We hope to have it deployed to the Defence Bank App at a future date.
You will need to provide your signed instructions in writing to Defence Bank.
HINT: If you wish to avoid the paperwork, go to online banking, and set your renewal to pay straight to your Defence Bank everyday account or savings account and transfer external online on the day or shortly after.
No - To add funds to a Defence Bank term deposit, funds need to be in a Defence Bank account on the day of maturity/commencement or during the grace period.
If you are unable to action via online banking at maturity, requests to add funds can be submitted via a DocuSign form, secure mail, email or over the phone if the from account is a 'may sign alone account'. Your request will then be actioned on the day of maturity (or the next business day).
No - To change the term of your term deposit, a request can be submitted via a DocuSign form, secure mail, email or over the phone if the term deposit is a 'may sign alone account'. Your request will then be actioned on the day of maturity (or the next business day).
If the account is a two to sign account, the request will need to be completed in writing signed by the required number of signatories.
Hint: If you wish to avoid the paperwork, go to online banking, and set your renewal to pay straight to your Defence Bank everyday account or savings account and and then set up a new term deposit for the new term on the day or shortly after.
If you do not have a Defence Bank Savings account, you will not be able to redeem your term deposit online.
The savings accounts available for selection must meet the following criteria:
- be active.
- be a Defence Bank account.
- be owned by the term deposit holder (joint accounts are acceptable).
Full redemption:
No - All instructions to redeem a term deposit in full need to be received prior to maturity, if it is already the day of maturity you will need to submit your request in writing for our team to process on your behalf.
Partial redemption:
Yes - From 15th of April 2025, if you are an owner of the account (not a signatory) and would like to redeem a portion of your term deposit to a Defence Bank savings account, you can do so via online banking
When interest is set to capitalilse, the balance shown on the renewal instruction page in online banking is a combination of the current term deposit balance and the expected interest at the time of maturity.
If changes are made to the term deposit during the term, this will change the renewal balance.
Full redemption:
No - All full redemption request instructions need to be received prior to maturity, If the maturity date has passed you will need to submit your request in writing for our team to process on your behalf.
Partial redemption:
Yes - From 15th of April 2025, if you are an owner of the account (not a signatory) and would like to redeem a portion of your term deposit to a Defence Bank savings account, you can do so during the grace period via online banking.