Can an international student have a term deposit?

Banking for overseas students can be complicated, but you may still be able to steadily grow your funds as an international student by using a term deposit. 

If you have money that you don’t plan on spending while you’re studying in Australia, a term deposit could be a relatively safe investment option, as you won’t be able to touch your savings for a fixed period, and you can earn interest at a set rate over this term.  

Several banks around Australia offer term deposits to international students. Some banks even have specific accounts and offers designed for those who study overseas.

Keep in mind that the interest earned from savings in a term deposit counts as taxable income. Depending on your visa type, how long you plan to stay in Australia, and other factors, you may be considered an Australian resident for tax purposes, and your income may be taxed at a generally lower rate than a foreign resident. 

Most term deposits (and other bank accounts) are open to anyone who is at least 18 years old. There are also some term deposits open to younger students, some even without an age limit. These term deposits are usually opened on the student’s behalf, by their parent or guardian.

International students can often open an Australian bank account a few months before arriving in the country, though you’ll likely need to verify your identity in person once you get here. If you have already opened an account with a bank, you could start by looking into the term deposit options they offer. But it’s often worth comparing term deposits from other banks to see if you can find an option with a competitive interest rate that also suits your financial situation.

Compare term deposits