Australia’s Best Term Deposits December 2023
Whether you're saving a deposit for a home or building up an emergency fund, a term deposit with a fixed interest rate could be one of the more reliable ways to ensure that your savings continue to grow over time.
The good news for savers is that after a period of decline term deposit rates are starting to edge higher. According to the latest figures from the Mozo database, many banks have lifted their interest rates in the last month.
But with different interest rates, term lengths and account features on offer, how can you find the best term deposit match? The ‘best’ term deposit for you is going to be different to the next person because everyone has varying financial and savings needs. One place to start is to compare ‘award-winning’ term deposits.
Every year Mozo’s team of in-house financial experts compare a range of banking products as part of the Mozo Experts Choice Bank Account and Savings Awards^ - including term deposits. In fact, in 2023 our judges analysed 83 different term deposit accounts to find the ‘best’, some of which we’ve wrapped up below. The Mozo editorial team has also rounded up information about some other excellent term deposit deals that caught our attention this month.
Editor’s picks of the month: December 2023
With term deposit interest rates on the move, you might want to consider locking in your savings for a mid-length term, which might get you a good level of interest. Here’s a selection of 1 - 2 year term deposits handpicked by our editors. To compare them against other options, check out our term deposit comparison page to explore our complete database.
Bankwest Term Deposit
- 4.90% p.a. for a 9 month term paid at maturity
- $1,000 minimum deposit
With the Bankwest term deposit you can begin investing with as little as $1,000 up to $5 million. There are a range of investment terms available from 1 month to 5 years, but its most competitive rate is currently 4.90% p.a for a 9 month term paid at maturity. There are no account fees but you’ll need to set up a linked account which can be with Bankwest or another financial institution. At the end of the investment term, you’ll get a 7 day grace period to decide whether you want to reinvest or withdraw your funds.
First Option - Term Deposit
- Up to 4.80% p.a. interest rate for 12 month term
- Minimum $25,000 deposit
First Option’s term deposit offers rates of 4.80% for a 12-month term, depending on how much you deposit. First Options allows you to pay interest to another bank and automatically rolls over your term deposit once it matures. Insured by the Australian Government Financial Claims Scheme.
Expert Picks: Award-winning best Term Deposits
Judo Bank -Term Deposit
- 5.10% p.a. interest rate for a 2 year term
- 0.10% loyalty bonus
- Interest can be paid to another bank
If you’re looking for a competitive interest rate and some flexible features, Judo Bank’s award-winning Term Deposit^ is an option worth taking a closer look at. It comes with term options between three months and five years, with interest rates as high as 5.10% p.a. on a 2 year term (when interest is paid at maturity). Aside from the rates, Judo Bank lets savers have their interest paid to another bank and they’ll give customers a 0.10% interest rate bonus if they roll over their principal for a new term, once it reaches maturity. Just remember, there’s a minimum deposit requirement of $1,000 to get started and a maximum of $1,000,000.
Qudos Bank - Term Deposit
- 4.65% p.a. for 1-year term (minimum deposit of $5,000)
- Deposit up to $1,000,000
- Interest can’t be paid to an external account
Qudos Bank award winning Term Deposit^ offers a 4.65% p.a. interest rate for a 1-year term when interest is paid at maturity. Terms start at three months and go up to 3 years for deposits from $2,000 to $1,000,000. Unfortunately, the interest earned cannot be paid to an external bank account. But Qudos does offer automatic rollovers if you wish to extend the term.
Mozo People's Choice Award 2023
Every year, Mozo sends out a survey for Australians to tell us which banking products they think are the best. And the Mozo People’s Choice Awards uses that information to declare the people’s favourites as winners. Here’s a look at some of this year’s banking winners with great term deposit rates.
Bendigo Bank Term Deposit
- 4.90% p.a. for 12 month term
- $1,000 minimum opening deposit
Bendigo Bank scored a 2023 Mozo People’s Choice Award for Excellent Customer Service which is no easy feat. It offers all sorts of banking products with an excellent customer service team to help you every step of the way, including getting a 12 month term deposit with a 4.90% p.a. interest rate. You only need $1,000 to open a term deposit, and you can deposit up to $5 million. Unfortunately, it doesn’t let you pay your interest into another bank account, but it does offer automatic rollovers for when your term deposit reaches maturity. Be mindful that you must give a 31 day notice to Bendigo Bank if you want to withdraw your funds before the maturity date.
ING Term Deposit
- 5.00% p.a. for 12 month term
- Minimum opening deposit of $10,000
- Won five 2023 Mozo People’s Choice Awards
ING’s term deposit offers a competitive 5.00% p.a. rate for a 12 month term. You can choose to have your interest paid into a different bank of your choosing once the account reaches maturity. Also, once your term reaches maturity, it automatically rolls over to a new term. To be able to use this term deposit you need to have at least $10,000 available to deposit. The maximum amount you deposit is $5 million. Remember, if you want to withdraw your funds before the maturity date you must with a 31 day notice.
The most common FAQs about term deposits
What’s the difference between a term deposit and a savings account?
If you’re weighing up whether a term deposit or savings account would be the best fit for your savings there are a few major differences to consider. Term deposits come with fixed interest rates so you’ll know exactly how much you’ll earn over time, 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 come with variable interest rates which can be changed by your bank (up or down) at any time, but you’ll also have easier access to your money.
Do the best term deposits have account fees?
The good news about term deposits is that the vast majority don’t come with monthly account fees, including our best Term Deposit award winners listed above. Don’t forget that a penalty of some kind will most likely apply if you choose to withdraw your money from a term deposit ahead of schedule though.
Are term deposits safe?
Term deposits issued by authorised deposit-taking institutions (ADIs) in Australia are covered under the government’s Financial Claims Scheme. The scheme provides a guarantee for deposits of up to $250,000 per person, per institution in the unlikely event that an ADI fails.
Can I withdraw money from a term deposit early?
Yes, it is possible to access term deposit funds early before the maturity date, though there are downsides to doing so. In most cases you will need to give your bank at least 31 days notice beforehand, and you’ll likely be charged an early withdrawal fee or some sort of penalty for doing so.
What are the best term deposits in Australia?
Ultimately we can’t point you towards one single ‘best’ term deposit, because the best term deposit for you will be based on your own priorities and financial needs. In you live in or around Sydney have a look at the Best term deposits in Sydney. You may find it helpful to browse through the full 2022 Mozo Experts Choice Term Deposit Award winners list though, or if you’re interested in seeing how those award winners stack up against other offers on the market you can head on over to Mozo’s dedicated term deposit comparison hub.
Just remember, it’s always a good idea to read through the information and any terms and conditions provided on a bank or provider’s website first before making a decision.
* Different interest rates apply to different amounts or different interest payment frequencies.
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
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