Compare the best term deposit rates in Australia up to 5.15% p.a.

Mozo compares term deposit interest rates from 70 banks, mutual banks and credit unions in Australia, helping you find the best term deposit for your investment needs.

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Term deposit comparisons on Mozo

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 91 term deposits.
Last updated 8 December 2024 Important disclosures
  • Term Deposit

    5.15% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Great rates and incentives incl. 0.10% added loyalty bonus at renewal. Option to have interest paid to another bank. Winner of the Mozo Experts Choice Awards 2024^ for Term Deposits.

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  • Standard Term Deposit

    4.90% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Invest from as little as $1000. No monthly fees. Interest is paid at maturity. Range of terms available from 1 month to 3 years. Manage via online banking or via app.

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    Details
  • Term Deposit

    5.15% p.a.
    9 months

    $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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  • Term Deposit

    4.00% p.a.
    6 months

    $5,000

    Yes up to $250,000

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    Details
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^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.

Compare other savings options

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 250 savings accounts.
Last updated 8 December 2024 Important disclosures
  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    5.00% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first 4 months.

    Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.

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  • Savings Accelerator

    3.55% p.a. (for $0 to $50,000)

    2.85% p.a.(for $0 to $50,000)

    Yes up to $250,000

    New customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.

    Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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    Details
  • Smart Saver Account

    4.50% p.a. (for $0 and over)

    0.05% p.a.(for $0 and over)

    Yes up to $250,000

    Increase account balance by any amount and make no more than two withdrawals

    Work towards your savings goals with this account. Earn bonus interest when you grow your balance and make no more than 2 withdrawals each month. Earn a guaranteed standard rate of interest each month on your savings. No monthly account keeping fees to pay. Use the app or internet banking to manage your account 24/7.

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  • MoneyMAX Account

    No Current Offer

    4.70% p.a.(for $1 and over)

    Yes up to $250,000

    Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.

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  • Bonus Saver Account

    5.00% p.a. (for $0 to $250,000)

    0.05% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $20 each month and make 5 Visa Debit transactions with a linked Glide account.

    Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.

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    Details

Term deposit resources

Reviews, news, tips and guides to help find the best term deposit for you.

Term deposits snapshot: November 2024

While many providers continue to trim rates on longer-term fixed deposits in anticipation of forecast reductions in the cash rate for 2025, there are plenty of opportunities to secure expedited returns as banks elevate interest on short-duration terms.

However, interest rates aren’t expected to move until at least early next year. Commonwealth Bank (CBA) and ANZ predict cuts from February, while Westpac and NAB expect rates to remain unchanged until May.

One of the primary reasons for the delay in cuts to the cash rate is the persistence of underlying inflation. Annual trimmed mean inflation was 3.5 per cent in October, up from 3.2 per cent the previous month, according to the latest monthly CPI indicator.

For those with cash to stash, locking in a short-term deposit now could be a sensible strategy to benefit from higher rates, while remaining flexible for potential rate changes in the coming months.

Average vs best term deposit rates in November

1-year term deposit rates are currently the highest on average (4.44%) in our database†.

This month, rates are highest among term deposits that range from 3 – 9 months in length†.

Judo Bank offers the highest interest rate returns on five different term lengths in December, including the equal highest rate available in Mozo’s database - 5.15% p.a. for a 6 month term, matched with Heartland Bank’s 5.15% p.a. for a 9 month term.

Take a look at the list below to explore the updates, and use our comparison tables for term deposits to evaluate the various options available for saving your money.

Term deposit length

Average term deposit rates

Highest term deposit rates

3 months

3.94% p.a. 

5.00% p.a. from Bank of Sydney

6 months

4.33% p.a. 

5.15% p.a. from Judo Bank

9 months

4.30% p.a. 

5.05% p.a. from Heartland Bank

1 year

4.44% p.a.

5.05% p.a. from Family First Bank

2 years

3.90% p.a. 

4.75% p.a. from Judo Bank

3 years

3.71% p.a. 

4.65% p.a. from Judo Bank

4 years

3.54% p.a. 

4.50% p.a. from Judo Bank

5 years

3.56% p.a. 

4.50% p.a. from Judo Bank

If you’re comparing term deposits, make sure to keep the minimum deposit in mind. They generally vary from $1000 to $5000, and some are even as large as $25,000.

Interest rates listed above based on personal term deposits at $25,000 in the Mozo database.
Figures accurate
 as at 1 December 2024.

What are term deposits?

A term deposit is a savings product that offers savers a fixed rate of interest for a set period of time. These accounts offer an alternative to regular savings accounts, allowing you to put your money away and earn a guaranteed return. 

Term deposits can be anywhere from 1 month to 5 years and the interest rates offered on terms will vary between providers. Since your funds are committed to the term deposit, accessing your money usually requires advance notice to the bank (such as 31 days) or incurs an early withdrawal fee.

How to compare term deposits 

When you compare term deposits, you’ll want to keep a couple of factors in mind such as: 

  • Interest rates: the higher the rate the more interest you’ll earn

  • Deposit terms: the length of time your money will be invested for

  • Minimum deposit amounts: how much money you’ll need to invest up front.

While term deposits are typically pretty similar to one another, some have minimum and maximum deposit amounts. For example, some term deposits require you to have a minimum $1,000 deposit, whereas for others you need to have at least $25,000. 

Use Mozo’s term deposit calculator to find out how much interest you could earn on any given rate and term.

Are term deposits good in 2024?

Since the Reserve Bank of Australia (RBA) has slowed down its interest rate push as inflation (CPI) eases, the highest term deposit interest rates have slowly been chipped down. Recent months have seen both short and long term rates performing better than most medium term (2 and 3 year) rates. 

Check out the term deposit snapshot above for a breakdown of the top rates across each term.

Are term deposits safe in Australia? 

All term deposits listed on Mozo’s website are covered under the Australian government’s Financial Claims Scheme, as they’re provided by Authorised Deposit-taking Institutions (ADIs). 

This means the government will guarantee your deposit worth up to $250,000 per person, per deposit product, if the bank goes bankrupt or can’t pay you back.

Pros and cons of term deposits

Even if you find a good term deposit, there are a number of advantages and disadvantages you’ll want to consider before signing up.

Pros 

Cons

  • 1. Your money is locked away, helping you preserve your savings. 

  • 2. The interest you earn is virtually guaranteed 

  • 3. It’s a low-risk investment 

  • 4. Usually fee-free (unless you wish to make an early withdrawal) 

  • 5. If interest rates fall during your term, your rate will stay the same. 

  • 1. You can’t add to your term deposit balance if you wish to top it up

  • 2. You’ll have to pay a fee to withdraw your cash early (i.e. in case of emergency)

  • 3. If interest rates rise during your term, your rate will stay the same.

For a more in-depth breakdown, check out our guide on the pros and cons of term deposits.

Term deposits vs savings accounts

If you’re deciding between a term deposit or a savings account, it’s helpful to take a look at a side-by-side comparison of the two similar, but also very different, savings products.

Term deposits

Savings Accounts

Access your money at any time? 

Fixed rate of interest?

Guaranteed rate of return?

Make additional deposits? 

Safe (covered by FCS)? 

Typically requires a linked transaction account? 

Sometimes

Typically requires minimum starting deposit requirements?

Sometimes

For a full breakdown of the differences, check out our savings account vs term deposit guide.

Show transcript

What are the best term deposits?

The 2024 Mozo Experts Choice Awards uncovered the best term deposits in Australia, based on the banks that consistently offered the highest interest rates to their customers. Among the best in 2024 are:

Picture of Peter Terlato
Peter Terlato
Senior Money Writer

Peter Terlato is a content writer with nearly 15 years journalism experience. He's written extensively about finance, politics, technology, travel and lifestyle. His work has appeared in a number of publications including RateCity, finder, Business Insider and ETB Travel News. At Mozo Peter publishes news, guides and product pages across an array of topics; from credit cards and the cash rate to car loans and capital gains.

Picture of JP Pelosi
JP Pelosi
RG146
Managing editor

Managing Editor Jean-Paul (JP) Pelosi leads the editorial team, with over 20 years of experience writing for top outlets like The Guardian, The Sydney Morning Herald and News.com.au. JP's expertise in home loans and property is complemented by his rich background at major financial firms including CommBank, Suncorp and Amex. Holding a Master's in Communications and international experience in journalism, JP combines passion with skill and has a unique ability to apply this editorial experience and financial knowledge to advise the team on how to create engaging financial content for Australian consumers.

More term deposit FAQs

What happens if I break a term deposit account?

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

What does the 31 day term deposit notice period mean?

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.  

Are there any restrictions to opening a term deposit?

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.   

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

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. 

Where can I get 5% interest on my money in Australia?

At the moment, some of the leaders in a few term categories are offering rates around 5%. To find out some of the highest rates of the month, check out our article on how term deposit rates are doing.

Is it worth putting money in a term deposit?

Term deposits can be worth considering if you're looking for a low-risk, guaranteed return on your savings. They can be good if you have a lump of cash you don't need to access for a while and want to lock in a good rate before rates fall. However, this is a double edged sword as you may miss out on rising interest rates too. 


Term Deposit Reviews

ING Term Deposit
Overall 8/10
Convenience and performance

Range of accounts, convenience of savings accounts and day to day accounts together.Ease of using website

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Range of accounts, convenience of savings accounts and day to day accounts together.Ease of using website

Price
9/10
Features
9/10
Customer service
9/10
Convenience
9/10
Trust
9/10
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Jan, South Australia, reviewed 18 days ago
ING Term Deposit
Overall 10/10
Convenient and easy to make transactions

ING has a range of different accounts. The savings maximiser is great for short term goals and the term deposit for long term investment. The online site is so easy to use.

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ING has a range of different accounts. The savings maximiser is great for short term goals and the term deposit for long term investment. The online site is so easy to use.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
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Jan, South Australia, reviewed 18 days ago
Commonwealth Bank Term Deposit
Overall 8/10
Poor interest rates

I found products , services , very good the down side is there other places with slity higher interest rates other than that there excellent

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I found products , services , very good the down side is there other places with slity higher interest rates other than that there excellent

Price
6/10
Features
10/10
Customer service
10/10
Convenience
8/10
Trust
10/10
Less
Scott, Queensland, reviewed about 1 month ago

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