Mozo compares term deposit interest rates from 70 banks, mutual banks and credit unions in Australia, helping you find the right account for your investment needs.
Term deposit comparisons on Mozo
- last updated 17 August 2022
Search promoted term deposits below or do a full Mozo database search . Advertiser disclosure
Mozo experts choice awards won:
Term Deposit - 2022
For more information about these awards go to the link at the bottom of this table.
Term Deposit
interest rate
Minimum deposit
Govt Deposit Guarantee
3.85% p.a. 2 years
$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 2021^ 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 2021^ for Term Deposits.
For more information about these awards go to the link at the bottom of this table.
Term Deposit
interest rate
Minimum deposit
Govt Deposit Guarantee
3.25% p.a. 1 year
$5,000
Yes up to $250,000
Competitive rates for one year term deposits. Start investing with as little as $5,000 to $1,000,000. For personal customers who want to invest above $500,000, or for non-personal customers, contact Challenger’s call centre to discuss account application options.
Competitive rates for one year term deposits. Start investing with as little as $5,000 to $1,000,000. For personal customers who want to invest above $500,000, or for non-personal customers, contact Challenger’s call centre to discuss account application options.
Hot DealEarn a competitive rate of 3.24% half yearly or 3.25% annually on an 18 month term
Term Deposit
interest rate
Minimum deposit
Govt Deposit Guarantee
3.10% p.a. 1 year
$5,000
Yes up to $250,000
Deposit of $5,000 up to $5 million. Choose a term from 1 month to 5 years. Select a range of convenient interest payment options. $0 establishment or ongoing fees. Easy tracking using the mobile banking app.
Deposit of $5,000 up to $5 million. Choose a term from 1 month to 5 years. Select a range of convenient interest payment options. $0 establishment or ongoing fees. Easy tracking using the mobile banking app.
For more information about these awards go to the link at the bottom of this table.
Online Term Deposit
interest rate
Minimum deposit
Govt Deposit Guarantee
3.35% p.a. 2 years
$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.
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.
For more information about these awards go to the link at the bottom of this table.
Term Deposit
interest rate
Minimum deposit
Govt Deposit Guarantee
3.55% p.a. 1 year
$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 2021^ 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 2021^ for Term Deposits.
Get all the perks of a term deposit but even more flexibility with the Virgin Money Boost Saver. Get up to 2.6%* variable interest when you switch on the Lock Saver Feature to lock your hard-earned savings away. Add money at any time, pay $0 fees and get access to your money with just 32 days’ notice*. Comes bundled with the everyday Virgin Money Go Account. (*Monthly criteria, T&Cs apply)
Get all the perks of a term deposit but even more flexibility with the Virgin Money Boost Saver. Get up to 2.6%* variable interest when you switch on the Lock Saver Feature to lock your hard-earned savings away. Add money at any time, pay $0 fees and get access to your money with just 32 days’ notice*. Comes bundled with the everyday Virgin Money Go Account. (*Monthly criteria, T&Cs apply)
For more information about these awards go to the link at the bottom of this table.
Online Term Deposit
interest rate
Minimum deposit
Govt Deposit Guarantee
3.05% p.a. 1 year
$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.
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.
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
- last updated 17 August 2022
Search promoted savings accounts below or do a full Mozo database search . Advertiser disclosure
Mozo experts choice awards won:
Young Adult Savings - 2022
For more information about these awards go to the link at the bottom of this table.
Life - 18-29 years old
Maximum rate
standard interest rate
Govt Deposit Guarantee
2.75% p.a.(for $0 to $30,000)
0.65% p.a.(for $0 and over)
Yes up to $250,000
Make 5 card purchases/month with a Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.
Are you 18 - 29 years of age? Earn up to a generous 2.75% p.a. variable interest on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30k.
Are you 18 - 29 years of age? Earn up to a generous 2.75% p.a. variable interest on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30k.
Maximum rate
2.75% p.a.(for $0 to $30,000)
standard interest rate
0.65% p.a.(for $0 and over)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
Make 5 card purchases/month with a Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.
Access
BPay, Branch access, Phone banking, Internet banking
Minimum balance
$0.00
Other restrictions
Must hold a Westpac Choice transaction account. If 5 card purchases are made each month, but savings account balance hasnt increased, a 2.05% interest rate still applies.
Make at least 1 deposit per month and no more than 1 withdrawal, including internal transfers or external payments. Must enable the Lock Saver feature. 32 days notice for withdrawal and T&C's apply.
Pay no monthly fees. Set-up to 9 personalised savings accounts and choose to lock as many accounts as you like to earn the maximum variable interest rate. With just 32 days notice to access your money again, your future self will thank you.
Pay no monthly fees. Set-up to 9 personalised savings accounts and choose to lock as many accounts as you like to earn the maximum variable interest rate. With just 32 days notice to access your money again, your future self will thank you.
Maximum rate
1.80% p.a.(for $0 and over)
standard interest rate
0.05% p.a.(for $0 and over)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
Bonus rate is made up of the Base interest rate of 0.05%, Bonus interest rate of 1.45% and Notice interest rate of 0.30%. Make at least 1 deposit per month and no more than 1 withdrawal, including internal transfers or external payments. Must enable the Lock Saver Feature. 32 days notice for withdrawal and T&Cs apply.
Access
Minimum balance
$0.00
Other restrictions
Savings account only accessible through iOS or Android app. Daily ATM withdrawal limit not applicable.
Deposit at least $200 to either Spend or Save account from an external source each month.
Earn up to 1.85% p.a in interest. No monthly fee to pay. Split your money in up to 10 Save accounts. Track your progress on each of your save accounts. Instant access to cash via PayID and Osko. Deposits guaranteed up to $250k per customer.
Earn up to 1.85% p.a in interest. No monthly fee to pay. Split your money in up to 10 Save accounts. Track your progress on each of your save accounts. Instant access to cash via PayID and Osko. Deposits guaranteed up to $250k per customer.
Maximum rate
2.35% p.a.(for $0 to $250,000)
standard interest rate
0.10% p.a.(for $0 and over)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
Deposit at least $200 to either Spend or Save account from an external source each month.
Access
Internet banking
Minimum balance
$0.00
Other restrictions
Bank and saving account only accessible through iOS or Android app.
Reviews, news, tips and guides to help find the best term deposit for you.
Term deposits monthly snapshot: August 2022
Updated by:Maria Gil, Term Deposit Writer, 1 August 2022
The term deposit wars have begun and competition is heating up as several big banks now offer competitive rates for 11 to 14-month terms.
There were 630 increases recorded in Mozo’s database and now there are 8 term deposits offering interest rates above a ‘4’.
Many of the significant increases came from shorter term deposits and the big banks following the most recent RBA cash rate hike. This trend of increasing interest rates is expected to continue over the next couple of months and is good news for savers who want to invest their money in a secure fashion.
Amid the sea of changes, the term deposit leaders continue to be Judo Bank and AMP Bank, especially in the longer term space.
Term deposit interest rate increases in August 2022
AMP Bank is the current leader in the term deposit space, offering the highest rates in the Mozo database across 1 to 5-year terms:
3.50% p.a. for a 1-year term
3.90% p.a. for a 2-year term
4.15% p.a. for a 3-year term
4.30% p.a. for a 4-year term
4.40% p.a. for a 5-year term.
Other providers are offering similar rates if you’re keen to compare. Scroll up to see what other term deposits are available in Australia right now, or to find the cream of the crop, check out Mozo Experts Choice Award Term Deposit winners.
*Averages calculated using data available in the Mozo database, correct as of 1 August 2022.
What is a term deposit?
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.
How to find the best term deposit for you
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.
How do I compare term deposits?
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.
In 2022 Mozo has noted a rapid increase across all the term deposit interest rates in our database. Interest rates have been fairly high across the broad, where several rates starting with a ‘3’ and ‘4’. Read more about this in Mozo’s monthly update above.
Due to the recent RBA rate hikes, several banks have increased their term deposits to help customers to invest money in a secure fashion. 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.
Which banks have the best term deposit rates in Australia?
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!
Term deposit key features to look for
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.
Is money safe in a term deposit?
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.
What are the pros of term deposits?
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.
What are the cons of term deposits?
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.
Term deposits vs savings accounts
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.
Guaranteed rate of return. With a term deposit, you are guaranteed to receive the rate you locked in, when you first signed up to the term. The only way you might not receive this interest rate is if you have to withdraw your money early. As savings accounts come with variable interest rates, the rate of return is not guaranteed.
Put your savings under lock & key, reducing the urge to dip into them!
Fixed interest rates!
You can save up for an event happening in 3, 6 or even 12 months time.
Cons of a term deposit:
You won’t be able to access your money at a moment’s notice.
You won’t benefit from interest rate rises.
Pros of a savings account:
You can access your funds at any time.
You might benefit from interest rate rises.
Cons of a savings account:
Your interest rate may go down, if market interest rates go down.
You might be tempted to dip into your stash.
So happy to lock your funds away and watch the interest grow?
Well a term deposit could be for you!
Or, keen to grow your savings stash but need access to your funds at a moment’s notice?
Maybe consider a savings account!
Happy saving!
When is interest paid on a term deposit?
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.
What happens when a term deposit matures?
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
Checklist for opening a term deposit
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
Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.
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.
Bankwest provides fantastic, personalised service from real people who take the time to know their customers. Their products are competitive and secure.
Bankwest provides fantastic, personalised service from real people who take the time to know their customers. Their products are competitive and secure.
I have found that the commonwealth bank has gave me the best advice on term deposits in regards to the term length and interest rates to maximise my investment earnings
I have found that the commonwealth bank has gave me the best advice on term deposits in regards to the term length and interest rates to maximise my investment earnings
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Important information on terms, conditions and sub-limits
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
