Mozo compares term deposit interest rates from 70 banks, mutual banks and credit unions in Australia, to help you find the right account for your investment needs.
A term deposit is a cash investment made with a financial institution for a fixed period of time. This fixed period of time is known as a term. Providers offer shorter and longer terms, lasting anywhere from one month to five years. A fixed interest rate is applied to the deposit over the length of the term, meaning your return at the end should be substantially more - as long as you don’t withdraw it early!
Invest in highly rated Australian bonds. *Total Return for the 10 years to 31 December 2021 and 5.42% p.a. since inception on 29 March 2011. Past performance is not indicative of future performance. The fund is not a bank or term deposit.
Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity.
Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity.
Read our Mozo Review to learn more about the MyLife MyFinance Personal Term Deposit
$0 Set up and no ongoing account-keeping fees. Interest rate depends on balance amount. Optional 3,6,9 or 12 month terms. Balances from $10,000.
$0 Set up and no ongoing account-keeping fees. Interest rate depends on balance amount. Optional 3,6,9 or 12 month terms. Balances from $10,000.
Read our Mozo Review to learn more about the Citi Term Deposit
Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity.
Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity.
Read our Mozo Review to learn more about the MyLife MyFinance Personal Term Deposit
8 Month Term Deposit special. Minimum $250,000 deposits with no setup or monthly fees. Awarded Australia’s Best Credit Union in the 2021 Mozo Experts Choice Awards for Australia’s Best Banking.
8 Month Term Deposit special. Minimum $250,000 deposits with no setup or monthly fees. Awarded Australia’s Best Credit Union in the 2021 Mozo Experts Choice Awards for Australia’s Best Banking.
No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government
No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government
Read our Mozo Review to learn more about the MyState Bank Online Term Deposit
$0 Set up and no ongoing account-keeping fees. Interest rate depends on balance amount. Optional 3,6,9 or 12 month terms. Balances from $10,000.
$0 Set up and no ongoing account-keeping fees. Interest rate depends on balance amount. Optional 3,6,9 or 12 month terms. Balances from $10,000.
Read our Mozo Review to learn more about the Citi Term Deposit
No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government
No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government
Read our Mozo Review to learn more about the MyState Bank Online Term Deposit
^See information about the Mozo Experts Choice Term deposits Awards
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.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
From 1 Feb 2022, minimum deposit of at least $250 in the previous month.
An ongoing total variable bonus rate of up to 1.35% per annum will apply each month from 1 Feb 2022 if you deposit $250 in the previous month. Available only on balances up to $250,000. AMP Bank, winner of the Mozo Experts Choice Awards 2021 in the Savings category.^
An ongoing total variable bonus rate of up to 1.35% per annum will apply each month from 1 Feb 2022 if you deposit $250 in the previous month. Available only on balances up to $250,000. AMP Bank, winner of the Mozo Experts Choice Awards 2021 in the Savings category.^
Read our Mozo Review to learn more about the AMP Saver Account
Bonus rate of 1.20%. Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.
Enjoy a savings account bundled with a spending account. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account
Enjoy a savings account bundled with a spending account. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account
Read our Mozo Review to learn more about the Boost Saver with Go Account
Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.
Read our Mozo Review to learn more about the Bonus Saver Account
Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.
Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.
Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.
Read our Mozo Review to learn more about the Grow Saver
^See information about the Mozo Experts Choice Savings accounts Awards
As we head into 2022, things are starting to look up for term deposit interest rates. Our Mozo research team noted a number of interest rate increases from banks including Macquarie, Bank of Sydney and ME Bank in the past month.
In fact, the average interest rate for a $25,000, 1 year term has actually increased marginally since the beginning of December 202from 0.48% p.a. on 1 December 2021 to 0.50% p.a. in early January 2022.*
Term deposit interest rate increases in January 2022
A number of term deposit providers have increased interest rates including Macquarie, Bank of Sydney and Hume Bank. These banks increased rates by as much as 50, 55 and 60 basis points.
AMP Bank also made a number of interest rate increases putting a number of its term deposits in the top spots in the Mozo database. Some of its current competitive rates are:
1.00% p.a. for a six month term
1.00% p.a. for a 9 month term
1.35% p.a. for a 2 year term
1.45% p.a. for a 3 year term
1.75% p.a. for a 4 year term
1.85% p.a. for a 5 year term
AMP Bank’s recent increases saw it take top spots previously held by Judo Bank for a number of longer terms. Judo Bank’s 3 month and 1 year term deposits are currently sitting in the top spots in the Mozo database for their respective terms. They offer a 0.88% p.a. interest rate and 1.12% p.a. interest rate.
Scroll up to see what other term deposits are available in Australia right now.
Updated by: Tara McCabe, 6 January 2022.*Averages calculated using data available in the Mozo database, correct as of 6 January 2022.
Term deposits are a relatively low-risk investment option offered by many Australian banks, mutual banks and credit unions. Term deposits enable you to earn interest on a lump sum of money at a fixed interest rate for a locked-in period of time. This can be anywhere from one month to five years. When you put your money in a term deposit, you can usually choose to have interest paid to you monthly or when the term deposit matures.
To find the right term deposit for you, you will need to compare the range of interest rates available and carefully consider what investment term length will suit your financial needs. This is important, as there are often penalties that come with withdrawing money early from a term deposit.
You can use Mozo’s table above to compare term deposits available in Australia right now. The table provides a snapshot of key features you’ll want to know about, before deciding on the right term deposit for you.
Here’s a quick rundown of what is included in Mozo’s term deposits comparison table:
The interest rate column: This lists out the interest rate you’ll earn for the rate term outlined. You will receive this rate for the entire term deposit fixed period, unless for any reason you need to withdraw your money early. In this case, your interest rate may be reduced or there may be some other penalty that applies.
The minimum deposit column: This outlines the amount of money you’ll need to have to open a term deposit with the provider listed. With term deposits this minimum amount can range from $500 up to $250,000.
The term deposit provider: All term deposit providers that are listed on our site are covered under the Australian government deposit guarantee scheme up to $250,000.
In 2021 Mozo has noted a number of providers actually increasing term deposit interest rates. This is despite interest rates still being fairly low across the board. Read more about this in Mozo’s monthly update above.
As well as interest rates potentially creeping upwards, right now due to the Covid-19 pandemic, a term deposit is considered to be one of the safest investment options for Australians with cash. This is because interest rates on term deposits are fixed and your money is protected under the Australian government deposit guarantee scheme for balances up to $250,000.
There is no one Australian bank that offers the best term deposit rates across every investment term. This is why it’s important to compare term deposits based on your own individual circumstances. For example, a bank might offer a competitive interest rate for a one year term, but the minimum deposit amount might be more than the cash you have to invest, or you might not be looking for a term that long.
The term deposit interest rate you’ll be able to get will depend on:
Your deposit amount
The investment term you choose
What providers operate in your area
Whether or not you are fussed about investing with a bank, mutual bank, credit union or online bank
These days most banks will give you the option to set up and manage a term deposit via internet banking or a banking app. This means you’ll be able to invest your money, from the comfort of your couch!
The key features to compare term deposits on include:
Interest rate. The higher the interest rate, the higher your rate of return should be. Term deposit interest rates are fixed, so no matter what happens in the market, the rate you lock in at the start of your investment will remain the same for the entire term.
Interest payments. Interest for shorter terms is usually paid at maturity, while for longer terms it is often paid annually. Some providers may also give you the option to have your interest paid monthly.
Investment term. The length that you can invest your money can range anywhere from one month to five years, depending on what each financial institution offers. Most providers have a range of shorter and longer terms to choose from.
Minimum deposit. All term deposits will require a minimum lump sum investment. Around $1,000 is generally the minimum investment needed to open a term deposit.
Automatic rollover at maturity. Your provider should notify you when your term is nearing its end and will usually give you a number of options for what you can do at maturity. These may include collecting your money, plus interest, or depositing it into another term. If you do nothing, your money may automatically be rolled over to a new term. With this you may not receive the most competitive interest rate.
All term deposits listed on Mozo’s website are covered under the Australian government’s financial claims guarantee scheme. This scheme provides protection for deposits up to $250,000 with authorised deposit-taking institutions (ADIs), such as your bank, mutual bank or credit union, in the event that the ADI fails.
Some pros to putting your money in a term deposit are:
Removes temptations to dip into your savings and spend, as you cannot access your money for the length of the term (unless you request an early withdrawal).
Interest rates are fixed, meaning they won’t fluctuate with market changes, for the length of your chosen term.
It is a fairly low risk investment, compared to other investments such as stocks and shares and property.
There are usually no set up or account management fees to worry about.
Some cons to term deposits are:
You cannot easily access your money, until the term matures.
Penalties may apply, if you do have to withdraw your funds early. This could be in the form of a reduced interest rate or fee.
You won’t benefit from interest rate increases, during the length of the term.
It’s the age old question...Should I put my money in a savings account or a term deposit? Comparing the two might give you some idea as to which one is right for you.
With a term deposit you won’t be able to access your money for a certain length of time. If you don’t think you can do that, then you may be interested in a high interest savings account instead.
While savings accounts are usually easily accessible, penalties often apply if you need to withdraw money early from a term deposit. Although this can also be a pro for term deposits, as it means there is less temptation to spend your stash.
You can’t make additional payments to a term deposit, whereas savings accounts can be topped up whenever you like. Weekly, daily, monthly etc.
Term deposits come with fixed interest rates, while rates for savings accounts are variable. This means your bank could lower the interest rate on savings accounts a month, a week or even a day after you deposit your money into it.
Interest payments are often determined by the length of the term deposit. With shorter term deposits (one month to one year), interest is usually paid when the term matures. For longer terms, providers will often give you the option to have interest paid monthly, annually or at maturity.
Interest is typically paid via direct credit into a linked everyday transaction account. In some cases, the financial institution may give you the option to have the interest paid to another bank of your choice.
Use Mozo’s term deposit calculator for an estimate of how much interest you could make with a particular term.
Prior to the maturity date of your term deposit your bank will get in touch with you and explain your options. At this point, it is a good idea to shop around to compare term deposit interest rates that other financial institutions and banks have available.
If your bank doesn’t hear from you before your term matures, they may do an automatic rollover. An automatic rollover is when a bank moves your money into a new term deposit with the same fixed term. The interest rate will be the rate that is currently on offer with that term at the time of the rollover. There’s a chance that this will be lower than your original interest rate, which is why it’s important to keep a note of the term deposit end date.
Generally at maturity, your options will include:
Withdrawing all of the money (including the interest)
Withdrawing some of the money and reinvesting the rest
Topping up the balance with additional funds and reinvesting all of it
Reinvesting the same amount for the same length of time
Reinvesting the same amount for a different length of time
If you are aged 18 or over, in most cases you will be able to open a term deposit online. Once the term is set up, you should be able transfer your funds directly into it. Here’s some information you may want to have on hand:
Your name, address and phone number
Proof of ID, e.g. driver’s licence, plus Medicare card
Your tax file number
Details of your nominated bank account from where funds will be transferred
Details of anyone else who may be noted on the term deposit
When it comes to term deposits, banks like to work in round figures. You can invest in anything from a minimum of $1000 - $1+million. Just be aware that with the Australian Government Guarantee Scheme, term deposits are only covered for up to $250,000 per customer per financial institution.
The good news is there are no set up, ongoing or annual fees with term deposits. But there are penalties for withdrawing your savings before the term has matured. You will need to give banks a 31 day notice period if you want to withdraw early. Some accounts allow a partial withdrawal of your term deposit; others require a full withdrawal. In either case, the banks may hit you with:
When you sign up for a term deposit you’ll get to choose how long you’d like to lock away your money for. This could be for as short as 1 month or as long as 5 years depending on the bank. The interest rate will change depending on the term selected. When you get to the end of the term, your bank will return your deposit (along with interest) or you’ll have the option to reinvest.
If you need access to your funds before the maturity date of your term deposit, it is possible to break the account. Firstly, you will need to give the bank 31 days notice and secondly you will likely be required to pay an early withdrawal fee. For more detailed information, see our term deposit early termination guide.
The 31 day notice period applies if you want to withdraw money from your term deposit prior to the maturity date. This is a regulation that was introduced by the Australian Prudential Regulation Authority (APRA) requiring customers to give banks 31 days advance notice. Even if you provide 31 days notice, you may still need to pay an early withdrawal fee or penalty.
Some banks may require you to have a linked account for interest to be paid, while others will allow for interest payments to be made to any bank account of your choosing.
You will generally need to be a resident for tax purposes to be able to open a term deposit with an Australian bank. Banks will generally also require you to be at least 18 years old to open a term deposit. If you are under 18, it might be possible to open a joint account with a parent or guardian.
It may be possible to negotiate a higher interest rate than the advertised rate with a bank prior to opening an account but this will depend on the bank and how much you are investing. Once you have transferred your funds, the interest rate is locked in for the duration of the agreed term.
At the end of the term deposit period, your bank will contact you regarding your options at maturity. Some term deposits will have an automatic rollover feature and this means that if you don’t notify the bank of your plans, they will automatically renew your deposit for the same period of time and at the current market interest rate for that rate term. This could be more or less than your initial interest rate, which is why it is important to keep track of the end date.
Yes, the interest earned on a term deposit is considered income and you’ll need to include this on your tax return for the financial year in which it was paid. It is a good idea to speak with your accountant or financial advisor about your specific tax situation, especially if you are investing a large amount of money.
You will be able to open a term deposit account with most banks online. If you have not been a customer of the bank previously, you will need to provide some information to verify your identity but in most cases this can be done 100% online.
Mozo has a range of resources and term deposit guides available to help you better understand the ins and outs of term deposits.
I had trouble with AMP when as a lawyer I was after the held up the payment of superannuation to a deceased estate. I thought that the AMP bank may give better service. They will transfer money to themselves within hours of your application but then you cease to exist. Won’t answer your phone calls. No call back and an email response to phone them. Totally useless.
Read full reviewI had trouble with AMP when as a lawyer I was after the held up the payment of superannuation to a deceased estate. I thought that the AMP bank may give better service. They will transfer money to themselves within hours of your application but then you cease to exist. Won’t answer your phone calls. No call back and an email response to phone them. Totally useless.
Initially all of these products were excellent but with the change of rates we now don’t receive a good return as a loyal customer.
Read full reviewInitially all of these products were excellent but with the change of rates we now don’t receive a good return as a loyal customer.
Rabo threatened to block my account which I had for over 12 years if I did not provide a significant amount of extra information. The forms and requirements were onerous. I was left with no choice but to cancel my term deposit and pay an early termination fee. And withdraw all my funds before they froze my account. This bank is outrageous. They were happy with all the information I supplied 12 years ago but now they required significant additional information.
Read full reviewRabo threatened to block my account which I had for over 12 years if I did not provide a significant amount of extra information. The forms and requirements were onerous. I was left with no choice but to cancel my term deposit and pay an early termination fee. And withdraw all my funds before they froze my account. This bank is outrageous. They were happy with all the information I supplied 12 years ago but now they required significant additional information.
More term deposit reviews
