Can students open a term deposit?

One of the more low-risk investment options available in Australia are term deposits, which may make them appealing to younger Australians, such as students, looking to grow their savings.

So, can Australian and overseas students open a term deposit? Yes, but there may be additional steps international students need to jump through to gain approval for a term deposit.

Who is eligible for a term deposit?

If you are an Australian-born student currently living in Australia, applying for a term deposit may be as simple as comparing your options online and submitting your application.

Unlike applying for a credit product, like a credit card or personal loan, opening a term deposit is a relatively straightforward process, with an easier barrier of entry. 

Generally speaking, to be eligible for a term deposit, you will simply need to meet the following criteria:

• Be 18-years or older
• Have an Australian address
• Provide your Tax File Number (TFN) or, TFN exemption if applicable
• Meet a minimum deposit amount (typically $1,000 - $5,000)
• Open a deposit account with the term deposit provider

When you apply for a term deposit, it’s likely the provider will ask you to verify your identity with personal identification documentation, such as a passport or relevant Visa, drivers licence or Medicare card.

Can international students open a term deposit?

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

You may just need to ensure these additional criteria are met, on top of the above list:

• You already live in Australia and have an Australian address (consider holding off on applying until you arrive).
• You’ve opened an everyday bank account and deposited funds into your account at least three months before applying for the term deposit.

Some providers, such as CommBank and Westpac, request that international students verify their identity at a branch in Australia before opening a term deposit or withdrawing funds from their bank accounts. It may be worth keeping the accessibility of branches to your university in mind when choosing a provider if it carries this stipulation. For example, if you are studying regionally, have limited access to transport and the nearest branch is hours away, it may become more challenging.

If you have already opened an account with a bank, it might be sensible to discuss your options with your chosen bank. Otherwise, consider comparing term deposit options today, including factors like the rate and term length.

Keep in mind that if opening a term deposit requires you to have a bank account with said provider, you’ll want that bank account to suit your needs and budget. Look out for things like pesky account-keeping fees or overseas fees that could burn a hole in your student budget.

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