A savings account allows you to deposit and withdraw money — our bonus saver product will pay you interest if you deposit at least $100 in the month and make no withdrawals. It is suitable for individuals who need easy access to their funds should they need it and want to maintain financial flexibility.

On the other hand, a term deposit requires you to deposit a specific amount for a fixed period, which can range from a few months to 12 months. During this term, you cannot withdraw the funds without incurring penalties. In return for this commitment, term deposits offer higher interest rates than savings accounts, making them ideal for individuals willing to lock in their money for a set duration to earn better returns.

The Australian Government guarantees aggregated deposits with Australian authorised deposit-taking institutions, including Illawarra Credit Union, of up to $250,000 AUD.

The Financial Claims Scheme (FCS) is an Australian Government scheme that was established during the 2008 global financial crisis to provide financial protection for consumers in the unlikely event of a failure of a bank, credit union, building society or general insurer.

The FCS provides protection for depositors of banks, credit unions and building societies that are incorporated in Australia (also known as authorised deposit-taking institutions or ADIs), for deposits up to $250,000 per account holder per ADI.

The scheme aims to return deposits to account holders within seven days of activation of the FCS.The FCS can be activated by the Australian Government in the unlikely event that an ADI or general insurer fails.
Once activated, the FCS will be administered by APRA.

The objectives of the FCS are to:

• Protect depositors of ADIs, and claimants of general insurers, from potential loss in the unlikely event of the failure of these institutions;
• Provide depositors with prompt access to their deposits that are protected under the FCS; and
• Support the stability of the Australian financial system.

Further information about the Government Guarantee can be obtained from the APRA website at www.fcs.gov.au.

When a term deposit matures, we will notify you before maturity. At maturity, you can renew the deposit with the earned interest, withdraw the entire amount, or make a partial withdrawal while renewing the rest within 7 days of the maturity date. If you take no action, we may automatically renew the deposit for the same duration at prevailing rates unless you’ve told us otherwise.

To open a term deposit account with us, you’re required to have an Everyday transaction account for us to pay interest into. Avoid paying the monthly account-keeping fee on your transaction account by either:

• Depositing $2,000 or more into your account each month, OR
• Having a membership value of $50,000 or more (Including loans & deposit products)

Plus if you’re under 23, with an Everyday Student account, the account-keeping fee will be waived.

Membership value is calculated by simply taking the daily balance of each Savings, Term Deposits and Loan account for membership and averaging them, providing a daily average for the month. Please refer to our fees and charges for more info.

If you wish to withdraw your deposit prior to the maturity date you must provide at least 31 days notice, this may result in penalties, loss of interest, or a lower interest rate. Please refer to our fees and charges.

Your earned interest payments will be sent to a linked Everyday Account upon maturity.

It’s easy! Whether you’re a new customer or existing customer, simply complete the online enquire and our team will contact you within 1-2 business days to help you set up the term deposit. Alternatively, you can all us on 1300 132 249 between 9am-5pm AEST Monday to Friday.

If you’re a new customer, our team will also set up a new Everyday transaction account in order for you to deposit your funds into. Once arrived, our team will then transfer these funds into your term deposit account. You can view Everyday account information including fees & charges here.

Please remember  this offer is for new term deposits and is only eligible for funds that have not been with Community First, Illawarra Credit Union or Easy Street in the last 14 days from the date of enquiry and where the offer conditions are met.