Compare Term Deposits in Australia

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.

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Term deposit comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 101 term deposits.
Last updated 19 July 2024 Important disclosures
  • Mozo Expert Choice Badge
    Term Deposit

    5.25% 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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  • Online Term Deposit

    5.00% 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.

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  • SMSF Term Deposit

    5.25% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Apply digitally in minutes and manage your SMSF Term Deposit. Flexible cash flow management with three interest payment frequencies that suit you: monthly, yearly, or at maturity. Choose from terms of 3 months up to 5 years. No application or monthly account fees but eligibility criteria and terms and conditions apply. Only accessible to SMSFs with two or up to four individual trustees or one corporate trustee.

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  • Mozo Expert Choice Badge
    Term Deposit

    5.25% 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 2024^ for Term Deposits.

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    Details
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^See information about the Mozo Experts Choice Term deposits Awards

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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 the products below. We don’t compare the entire market, but you can search our database of 274 savings accounts.
Last updated 19 July 2024 Important disclosures
  • Savings Account

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

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first 4 months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2024 Mozo Experts Choice Award winner.

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  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

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

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

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    Details
  • Savings+Bonus

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

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

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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

    Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.

    Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.

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  • Mozo Expert Choice Badge
    Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account each month.

    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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Term deposit resources

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

Term deposits snapshot: July 2024

Judo Bank trimmed the interest rates on its leading 2- to 5-year term deposits late last month (now 5.00% p.a.), giving Rabobank some room to shine as the highest 5-year term deposit rate in the Mozo database†.

At 5.10% p.a., Rabobank’s 5-year term deposit is an attractive option. However, the catch is that you must open and maintain one of their High Interest Savings Accounts. While those come with a high introductory rate of 5.75% p.a. for the first four months, if you meet the eligibility criteria, the 4.40% p.a. savings rate you revert to isn’t the highest in our tables. 

Overall, term deposit interest rates are starting to decrease, as inflation tapers off and we get closer to a Reserve Bank of Australia (RBA) rate cut. 

Predictions around when interest rates will finally come down are for November 2024. However, ANZ and NAB disagree with CBA and Westpac, saying it could be as far away as February or May 2025. 

While it stands to reason that a cash rate cut would cause term deposit interest rates to decrease further, there are still plenty of options paying 5% or higher in our database, with a good chunk of those requiring minimum deposits of as little as $1,000, depending on the length of the term.

Average vs highest term deposit interest rates in July 2024† 

Term length

Average interest rate 17 July 2024

Change since 1 July 2024

Highest interest rate 17 July 2024

3 months

3.87% p.a. 

+0.03%

5.10% p.a. from Goldfields Money

6 months

4.36% p.a. 

+0.05%

5.30% p.a. from Heartland Bank

9 months

4.32% p.a. 

-0.01%

5.25% p.a. from Heartland Bank

1 year

4.68% p.a.

+0.05%

5.35% p.a. from Heartland Bank

2 years

4.07% p.a. 

+0.01%

5.00% p.a. from Alex.Bank & Judo Bank

3 years

3.89% p.a. 

5.00% p.a. from Alex.Bank & Judo Bank

4 years

3.76% p.a. 

5.00% p.a. from Alex.Bank, Judo Bank & Rabobank

5 years

3.79% p.a. 

-0.01%

5.10% p.a. from Rabobank

†Interest rates based on personal term deposits at $25,000 in the Mozo database. Correct as at 17 July 2024.

What are term deposits?

Term deposits are an alternative to savings accounts, and let you lock up your cash for a fixed amount of time to earn a guaranteed rate of return.

Typical term deposits range from 1 month up to 5 years, with all sorts of terms available in between. 

As your money is locked away in a term deposit, you can’t usually access your money without giving the bank advance notice (e.g. 31 days), and/or paying an early withdrawal fee. 

How to compare term deposits 

When you compare your options, keep in mind that it’s about more than just the interest rate. Make sure you take a look at:

  • 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. 

When you compare term deposits, ensure that you meet the eligibility requirements, that you’re getting the highest term deposit rate you can, and that the length of the term suits your needs. 

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) began pushing up the cash rate in May 2022, term deposit interest rates have gotten stronger. 

With the average 1-year term deposit rate up at 4.64% p.a. (for personal deposits at $25,000, correct at 17 June 2024), term deposits are a viable option for those looking for a good fixed rate of return.

Which banks have the highest term deposit rates in Australia?

For a long time, Judo Bank term deposits were consistently the highest in the Mozo database. However, in 2024 Judo Bank only takes the top spot on longer terms, from 2 to 5 years.  

A variety of banks have the highest term deposit rates, depending on the term, which means you can’t rely on the fact that the bank that used to offer the best term deposits still does. 

That’s why it’s important to compare term deposits each time you go to lock your cash away.

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

Pros 

  • You won’t be able to dip into your savings for as long as it’s locked away 

  • The interest you earn is virtually guaranteed 

  • It’s a low-risk investment 

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

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

Cons

  • You can’t add to your term deposit balance if you wish to top it up
  • You’ll have to pay a fee to withdraw your cash early (i.e. in case of emergency)
  • If interest rates rise during your term, your rate will stay the same.

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

Show transcript

When is interest paid on a term deposit?

Interest can be paid at different times throughout your term. For instance, interest can be paid at maturity (i.e. at the end of your term), monthly, or annually. 

Term deposit providers will often let you select how you want your interest paid. However, shorter terms (i.e. under 12 months) may only pay interest when your term deposit matures.

You will also have the option to choose where your term deposit will be sent to after it matures. You can choose to send it to a nominated bank account or reinvest it into a new term deposit. 

What happens when a term deposit matures?

When a term deposit reaches 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.

In some cases, the bank will contact you before your term deposit matures to ask how you’d like to proceed. This is a good time to compare term deposits to see if more competitive interest rates have become available. 

If you don’t contact the bank with your maturity instructions, they may automatically roll over your cash into a new term deposit, with the new interest rate for that term length, or put your cash into a low-interest holding facility, where it will sit until you’ve made a choice.

Compare award-winning term deposits 

It can be daunting to wade through all the term deposit options that are out there. That’s why the Mozo Experts Choice Term Deposit Awards exist. 

Mozo’s team of finance experts awarded the banks that consistently offer customers the highest term deposit interest rates across a range of terms, to find the best term deposits in Australia.

Picture of JP Pelosi
JP Pelosi
RG146
Managing editor

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.

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. 

Term Deposit Reviews

BCU Bank Term Deposit
Overall 9/10
Trustworthy and friendly.

I feel really safe with this bank. I love the way they phone if they think there’s been an inappropriate purchase. They are so helpful with fraud. They offer excellent interest in short term deposit.

Read full review

I feel really safe with this bank. I love the way they phone if they think there’s been an inappropriate purchase. They are so helpful with fraud. They offer excellent interest in short term deposit.

Price
9/10
Features
9/10
Customer service
9/10
Convenience
9/10
Trust
9/10
Less
Elisabeth, New South Wales, reviewed 10 days ago
ANZ Term Deposit
Overall 9/10
Excellent

I am extremely happy with my bank including service and products

Read full review

I am extremely happy with my bank including service and products

Price
9/10
Features
8/10
Customer service
8/10
Convenience
9/10
Trust
7/10
Less
Melissa, Victoria, reviewed 4 months ago
Commonwealth Bank Term Deposit
Overall 10/10
Best for customers service

I love this bank because of how l am treated

Read full review

I love this bank because of how l am treated

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Jonathan, Victoria, reviewed 4 months ago

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