The Tyro Bank Account is the best of both worlds – providing the flexibility of a transactional account with the high interest earnings of a savings account.
Unlike traditional high-interest accounts, the Tyro Bank Account is designed to reward you for holding your funds with Tyro for longer. It can be a tricky concept to grasp, so we’ve broken it down in simpler terms below.
How the Tyro Bank Account calculates interest
As soon as you activate your Tyro Bank Account, you’ll start to accrue interest – which is calculated daily and paid monthly on the third business day. You’ll be rewarded with bonus interest for any funds that sit in your account for longer than 30 days. There are three pools of bonus interest:
Pool #1: Longer than 30 days: Variable base interest rate + 0.25%p.a.
Pool #2: Longer than 60 days: Variable base interest rate + 0.50%p.a.
Pool #3: Longer than 90 days: Variable base interest rate + 0.75%p.a.
When funds are first deposited into your bank account, they earn our variable base interest rate. You can find the variable base interest rate on our Tyro Bank Account page. If these funds are not withdrawn for 30 days, from the 30th day onwards, they’ll earn the interest rate payable under pool #1 (bonus 0.25%p.a.). If the funds are not withdrawn for 60 days, from the 60th day onwards, they’ll earn the interest rate payable under pool #2 (bonus 0.50%p.a.). Finally, if the funds are not withdrawn for 90 days, from the 90th day onwards, they’ll earn the interest rate payable under pool #3 (bonus 0.75%p.a.).
What happens if I transact on my account?
Withdrawing on your account will affect the amount of interest payable on your funds. However, the good news is, your lower interest pools are impacted before touching the funds you have in the higher earning pools. We call this our ‘Last in, First Out’ philosophy. It basically means that, unlike typical term deposits, you won’t be penalised for accessing your money early (we don’t even charge withdrawal fees).
Imagine you open your Tyro Business Account and deposit $10,000 on 1st January, then continue to deposit the same amount at the start of each subsequent month for the next 4 months. If the base interest rate payable is 1.00%p.a., the position of your Tyro Bank Account on 1st May will be as follows:
At close of business on the 1st May, the total balance of the account is $50,000 with the interest accrued on the account for the day totalling $2.01.
If, on 2nd May, you were to withdraw $10,000, the first amount to be taken out would be the $10,000 in pool #1 in keeping with our ‘Last in, First Out’ philosophy.
At close of business on 2nd May, the total balance of the account is $40,000 with the interest accrued on the account for the day totalling $1.74
As you can see the withdrawn amount only affects the balance in the lowest interest bearing pool, leaving the remaining balances in the account to work towards the highest interest earning tranche.
The total amount of interest you would have earned on your Tyro Bank Account up to and including the 2nd May would be $108.57.
How do I maximise my interest rate?
Keeping your money in your account for a minimum of 90 days will ensure that your funds earn the maximum possible interest rate. As opposed to typical term deposits that penalise you for accessing your funds early, at Tyro we know that you need access to your money and don’t believe in penalising you for doing so. This is why the Tyro Bank Account does not charge any withdrawal fees for accessing your funds early. We’ve managed to combine the flexibility of everyday banking with the rewards of saving all in one account.
The Tyro Bank Account is also known as the Tyro Smart Account and is governed by Tyro’s EFTPOS Banking Terms and Conditions. Full details for the Tyro Bank Account are available in the Tyro EFTPOS Banking Terms and Conditions. Rates are variable and subject to change. For current rates, go to the Tyro Smart Account page.
The above example uses rates as of 2nd May 2019 which are subject to change. Please visit the Tyro website to see our latest rates.