A term deposit is a cash investment that’s made with a financial institution for a fixed period of time. This is known as a term and usually lasts between one month and five years. The deposit has a fixed interest rate applied to it over this term, meaning your return at the end should be substantially more - as long as you don’t withdraw it early! Mozo can help you get the best available return on your money. We compare term deposit interest rates from 70 banks in Australia to help you find the right account for your investment needs.
Invest in highly rated Australian bonds. *Total Return for the 9 years to 31 December 2020 and 5.68% 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.
$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
Terms from 3 to 36 months. A guaranteed rate. No account keeping fees. Enjoy a fixed rate or return. Get a written notice before your deposit matures.
Terms from 3 to 36 months. A guaranteed rate. No account keeping fees. Enjoy a fixed rate or return. Get a written notice before your deposit matures.
Read our Mozo Review to learn more about the Teachers Mutual Bank Term Deposit
Flexible 3 to 60 month terms available. $0 account keeping fees. Flexible interest payments at maturity or annually. Minimum $5,000 deposit.
Flexible 3 to 60 month terms available. $0 account keeping fees. Flexible interest payments at maturity or annually. Minimum $5,000 deposit.
Read our Mozo Review to learn more about the BankVic Term Deposit
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 2020 for Term Deposits.^
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 2020 for Term Deposits.^
Read our Mozo Review to learn more about the Judo Bank 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.
Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.
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
No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.15% rate after*
$0 monthly account fee. Link to any Australian bank account.
$0 monthly account fee. Link to any Australian bank account.
Read our Mozo Review to learn more about the Serious Saver
Bonus rate for the first 4 months from account opening
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
Read our Mozo Review to learn more about the Online Saver
Increase balance by at least $300 in the month
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
Read our Mozo Review to learn more about the Flexi Saver
Minimum deposit of $200 and no withdrawals in the month.
Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.
Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.
Read our Mozo Review to learn more about the Hero Saver
Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.
Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.
Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.
Read our Mozo Review to learn more about the Fast Track Saver Account
^See information about the Mozo Experts Choice Savings accounts Awards
Term deposits are a relatively low-risk investment option offered by many Australian banks. 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.
Before taking out a term deposit, you not only need to compare the range of interest rates available, but also carefully consider the best investment term for you. This is because there are penalties for withdrawing your money early with a term deposit.
Mozo makes term deposits comparison easy. In the table above, we’ve listed out the key features you’ll want to know about when comparing the best term deposit options for you.
Right now due to covid:19 and the current economic crisis, 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 Government Deposit Guarantee for balances up to $250,000.
There is no one Australian bank that has the best term deposit rates for every investment term. This is why it’s so important to compare term deposits based on your own individual circumstances. The term deposit interest rate you’ll be able to get will depend on:
Online banks and traditional bricks and mortar banks offer term deposits to customers and usually these days account set up and management can be done from the comfort of your couch via internet banking or banking app.
To make sure that you’ll get the best possible return on your investment, the main features to compare term deposits on include:
Term deposits are covered under the Australian Government’s financial claims scheme. The Australian Government guarantees term deposits of up to $250,000 with Authorised Deposit-taking Institutions (ADIs) such as your bank, credit union or building society. All term deposit providers listed on Mozo are ADIs.
It's the age old question… Is it best for those hard earned savings to be invested in a term deposit or in a savings account? Let’s review them side by side.
Interest payments are usually determined by the length of the term deposit. For short-term deposits (1 month to 1 year), interest is usually paid at the end of the term. When it comes to long-term deposits, interest is likely to be paid annually.
Interest is typically paid via direct credit into your nominated or linked account. In some cases, the financial institution that holds your term deposit may pay the interest to another bank of your choice.
To get an accurate idea of how much a term deposit will be worth in a certain amount of time, use our Term Deposit Calculator.
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.
Some banks, if they don’t hear from you before the date that the initial term deposit expires, will do an automatic rollover. This means they will set up a new term deposit for the same fixed term as before, but with the interest rate that it is currently offering for that investment term.This may be lower than your original interest rate, which is why it’s important to stay on top of the term deposit end date.
Generally, at maturity your options will include:
If you are over the age of 18, you’ll be able to open a term deposit online and once the account is set up transfer your funds directly into the new account. Here’s some of the information you’ll want to have on hand:
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 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 be likely 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.
ATMs often out of order, branch staff try to guide me to use ATMs when trying to conduct personal banking and allow me to use teller staff when I insist!
Read full reviewATMs often out of order, branch staff try to guide me to use ATMs when trying to conduct personal banking and allow me to use teller staff when I insist!
I made two attempts to open a term deposit on-line with this lot. First attempt was slow as the flotilla of intrusive questions had me searching for various documents. I was logged out on the 7th page of the questions with the software claiming that there "...was no activity for an extended period...". None of my input was saved! I gritted my teeth and restarted and I was really quick this time. On the 7th page the moronic software again claimed that there was "...no activity for an extended period...", and logged me off. This was absolute nonsense. Never again. I logged on to Judo Bank and invested my money there without a problem in just a few minutes.
Read full reviewI made two attempts to open a term deposit on-line with this lot. First attempt was slow as the flotilla of intrusive questions had me searching for various documents. I was logged out on the 7th page of the questions with the software claiming that there "...was no activity for an extended period...". None of my input was saved! I gritted my teeth and restarted and I was really quick this time. On the 7th page the moronic software again claimed that there was "...no activity for an extended period...", and logged me off. This was absolute nonsense. Never again. I logged on to Judo Bank and invested my money there without a problem in just a few minutes.
Best rates! But, what's the trickery with interest "paid at maturity" on a 3 year term deposit? Later in the text it says I can select monthly, yearly etc. payout. Are you seriously trying to trick customers out of Compound Interest? and if so, are you then misrepresenting the interest rate? Maybe it's time to review your offers and write some clear product details.
Read full reviewBest rates! But, what's the trickery with interest "paid at maturity" on a 3 year term deposit? Later in the text it says I can select monthly, yearly etc. payout. Are you seriously trying to trick customers out of Compound Interest? and if so, are you then misrepresenting the interest rate? Maybe it's time to review your offers and write some clear product details.
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