How are term deposits rates doing in May?

By Cameron Thomson · · 2 min read
Fact Checked
Advertiser disclosure
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Recently, term deposit providers have turned away from higher interest rates for longer terms and are instead focusing on shorter term rates. So, if you’re looking to lock your cash up for a short while, then some of the current term deposit rates on the market could be worth considering.

But who’s the current rate leader in term deposits? For a lot of last year, Judo Bank was the leader across most terms. However, as of May 2024, no one provider is offering leading rates across all terms.   

Judo Bank, Alex Bank (invite only), and G&C bank currently has the highest 3 year term deposit. Rabobank has the highest 4 year rate at 5.00% p.a and the highest 5 year term at 5.10% p.a. Alex Bank has the highest 2 year rate at 5.00% p.a closely follower by Judo Bank and G&C at 4.85% p.a. For 1 year terms, the Family First Bank Special Term Deposit is the highest rate at 5.30% p.a.

Below we’ve kept track of the top three financial institutions offering some of the highest interest rates found in the Mozo database. 

*Top Term Deposit leaders

Judo Bank - Tied highest 3 year rate

Term Length
Interest Rate  (p.a.)
1-year term
5.10%
2-year term
4.85%
3-year term
4.85%
4-year term
4.85%
5-year term
4.85%

G&C Mutual Bank - Tied highest 3 year rate

Term Length
Interest Rate (p.a.)
1-year term
5.05%
2-year term
4.85%
3-year term4.85%
4-year term
4.25%
5-year term
4.25%

Rabobank - Highest 4 & 5 year term rates 

Term Length
Interest Rate (p.a.)
1-year term5.00%
2-year term4.50%
3-year term4.50%
4-year term5.00%
5-year term5.10%

To learn more about term deposits check out Mozo’s tips and guide page.

*Top refers to the leading rate on the Mozo database

Term Deposit FAQs

What is a term deposit?

A term deposit is a low-risk investment option offered by many banks, mutual banks and credit unions. The deposit lets you earn interest on a large sum of money at a fixed rate for a specified period of time. That can be anywhere from one month to five years. After you put money in a term deposit you can choose how to have your interest paid: monthly or at maturity.

What are some of the best term deposits?

You’re in luck! Every year we announce the Mozo Expert Choice Awards^ where we crown the best of the best as winners. Some of the banks with the highest rates above have actually won awards for best term deposits.

Do I pay tax on the interest earned from my term deposit?

Yes, any interest earned is considered income and you’ll need to include this on your tax return for the financial year in which it was paid.

What’s the difference between a savings account and a term deposit?

Term deposits have fixed interest rates so you’ll always know how much you’ll earn over the determined term period, but the trade off is that to earn that interest you won't be able to access that money (without penalty). On the other hand, savings accounts have variable interest rates which can be changed by your bank (up or down) at any time and you’ll also have easier access to your money.

Compare term deposits - last updated 17 May 2024

Search promoted term deposits below or do a full Mozo database search. Advertiser disclosure
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    Term Deposit

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    6 months

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    Term Deposit

    5.00% p.a.
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    $1,000

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  • Online Term Deposit

    3.50% p.a.
    7 months

    $5,000

    Yes up to $250,000

    No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.

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    5.25% p.a.
    6 months

    $1,000

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  • Term Deposit

    5.35% p.a.
    1 year

    $25,000

    Yes up to $250,000

    Enjoy flexible terms starting from 31 days up to 5 years with a Heartland Bank Term Deposit. Get your interest paid monthly (on selected terms). Your savings are protected by the Government guarantee. Minimum deposit amount of $25,000 up to $1,000,000.

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Today's term deposit rates