Alex Bank began offering personal loans in 2018, and introduced waitlisted savings accounts shortly after APRA granted the banking licence.

Five months on from receiving its unrestricted banking licence, Alex Bank announced it will be launching a range of online only term deposit products.

The digital bank uses the Temenos banking cloud, an end to end digital banking platform, aiming to offer a streamlined, user friendly online banking service.

CEO Simon Beitz says the expansion into term deposits will help the bank continue to scale.

"This allows Alex Bank to rapidly grow its balance sheet and improve our cost of funds and margin," he said.

Last year was a volatile period for the neobank industry with Volt voluntarily handing over its banking licence due to lack of funding, while 86 400 was enveloped by NAB's uBank.

Alex Bank term deposit rates

The term deposits are currently only available via invitation, or through selected intermediary companies, and rates will vary between the two.

To receive an invitation directly from Alex Bank, interested customers need to register their interest and wait to hear back, but clients of approved intermediaries are able to apply.

Current Direct rates (as per Alex Bank website)

Term length Deposit size Payment frequency Interest rate
Six months $10,000-$250,000 End of term 3.80% p.a
One year $10,000-$250,000 Monthly 4.10% p.a
One year $10,000-$250,000 End of term 4.10% p.a
Two years $10,000-$250,000 Monthly 4.25% p.a
Two years $10,000-$250,000 Annually 4.25% p.a
Two years $10,000-$250,000 End of term 4.25% p.a

Current intermediary rates

Term length Deposit size Payment frequency Interest rate
Six months $10,000-$250,000 End of term 4.55% p.a
One year $10,000-$250,000 Monthly 4.80% p.a
One year $10,000-$250,000 End of term 4.80% p.a
Two years $10,000-$250,000 Monthly 4.80% p.a
Two years $10,000-$250,000 Annually 4.80% p.a
Two years $10,000-$250,000 End of term 4.80% p.a

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