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 9 December 2023
Search promoted term deposits below or do a full Mozo database search . Advertiser disclosure
Featured Product
Mozo experts choice awards won:
Term Deposit - 2023
SMSF Term Deposit - 2023
For more information about these awards go to the link at the bottom of this table.
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 2023^ 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 2023^ for Term Deposits.
Enjoy the certainty of a fixed interest rate combined with the convenience of online banking to set up and manage your term deposit at maturity. You can start investing from as little as $1,000 or up to $5,000,000.
Enjoy the certainty of a fixed interest rate combined with the convenience of online banking to set up and manage your term deposit at maturity. You can start investing from as little as $1,000 or up to $5,000,000.
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Compare other savings options
- last updated 9 December 2023
Search promoted savings accounts below or do a full Mozo database search . Advertiser disclosure
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.
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.
Maximum rate
5.25% p.a.(for $0 to $1,000,000)
standard interest rate
0% p.a.(for $0 and over)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
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.
Access
ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
For more information about these awards go to the link at the bottom of this table.
Savings Account
5.50% 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 four months.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
Maximum rate
5.50% p.a.(for $0 to $250,000)
standard interest rate
4.75% p.a.(for $0 to $1,000,000)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
Bonus variable rate is available for the first four months.
Access
BPay, Branch access, Phone banking, Internet banking
Minimum balance
$0.00
Other restrictions
Must have a Macquarie Transaction Account to link with.
Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.
Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.
Maximum rate
5.25% p.a.(for $0 to $100,000)
standard interest rate
0.30% p.a.(for $0 and over)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
Grow your balance each month and must have linked Bendigo Everyday or Student Account to be eligible.
Deposit at least $200 to either Spend or Save account from an external source each month.
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
Maximum rate
5.10% 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.
For more information about these awards go to the link at the bottom of this table.
High Interest Savings Account
5.75% p.a.(for $0 to $250,001)
4.40% p.a.(for $0 to $250,001)
Yes up to $250,000
Bonus rate for the first 4 months from account opening
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
Maximum rate
5.75% p.a.(for $0 to $250,001)
standard interest rate
4.40% p.a.(for $0 to $250,001)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
Reviews, news, tips and guides to help find the best term deposit for you.
Term deposits monthly snapshot: December 2023
Updated by: Jack Dona, Term Deposit writer, 1 December 2023.
Term deposit rates are relatively high right now, compared to the last few years.
The recovery we've witnessed over the past year and a half comes on the heels of the RBA's efforts to tame the beast (inflation), and has largely followed the official cash rate's upward trajectory.
Interest rates for deposit products, including savings accounts, generally stagnated during the five-month freeze of the cash rate between June and October 2023.
However, as you'll see here, the RBA's November rate rise thawed out some term deposit products, giving rates the room to grow.
If the RBA raises rates once more on 5 December, term deposit customers may get an extra boost on locked-away savings to end the year on a high.
For now, here's a breakdown of who has increased rates and where you'll find some of the top term deposit rates:
Which banks have increased 1 year term deposit rates by the full November RBA cash rate rise?
According to the Mozo database, these 1-year term deposit providers have either beat the RBA's latest cash rate hike of 25 basis-points, or passed on a higher rate to their customers (as of 1 December 2023):
Coastline Credit Union at 4.65% p.a. (+0.25%)
MOVE Bank at 5.15% p.a. (+0.25%)
NAB at 5.00% p.a. (+0.25%)
Commonwealth Bank at 5.05% p.a. (+0.30%)
Community First Bank at 4.60% p.a. (+0.30%)
ING at 5.30% p.a. (+0.30%)
Bank of Melbourne at 5.10% p.a. (+0.35%)
BankSA at 5.10% p.a. (+0.35%)
St.George at 5.10% p.a. (+0.35%)
Westpac at 5.10% p.a. (+0.35%)
Orange Credit Union at 5.00% p.a. (+1.00%)
Top term deposit interest rates in December 2023
Currently, the Mozo database lists several rate leaders depending on the length of the term.
Judo Bank leads in the 3 to 5-year terms at 5.30% p.a., while Bank of Sydney, ING, Alex Bank and Judo Bank grapple for the top 1-year term deposit: also at 5.30% p.a.
Highest term deposit interest rates
The highest term deposit rates in our database, at 1 December 2023, are:
1 month: Firstmac & Goldfields Money at 4.25% p.a.
3 months: Credit Union SA at 5.10% p.a.
6 months: Firstmac & Goldfields Money at 5.15% p.a.
9 months: Alex Bank, Judo Bank & Goldfields Money at 5.15% p.a.
1 year: ING, Bank of Sydney, Alex Bank & Judo Bank at 5.30% p.a.
2 years: Alex Bank at 5.35% p.a.
3 years: G&C Mutual Bank & Judo Bank at 5.30% p.a.
5 years: Judo Bank at 5.30% p.a.
While these are the highest, at the time of writing, many other providers are offering similar rates if you’re keen to compare.
Scroll up to see what term deposits are available in Australia right now. Or, to find the cream of the crop in this category, check out Mozo Experts Choice Award Term Deposit winners.
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.
Also depending on your location, you may be able to find better rates if you go in and talk to your local bank. Having the right solution tailed for your needs in important. Check out the below locations for term deposits.
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.
Recently had two term deposits redeemed before maturity without my authority. This resulted in a loss of interest to me of $694.36 Contacted amp on two occasions and both times experienced bad lines and incoherent staff. I am now taking action with AFCA and cannot wait for my other term deposits to mature so as i can leave this mob.. Is it any wonder that AMP shares are a disaster.
Recently had two term deposits redeemed before maturity without my authority. This resulted in a loss of interest to me of $694.36 Contacted amp on two occasions and both times experienced bad lines and incoherent staff. I am now taking action with AFCA and cannot wait for my other term deposits to mature so as i can leave this mob.. Is it any wonder that AMP shares are a disaster.
Signed up for a term deposit with BA due to their competitive rates. The account works fine as it is an uncomplicated product, however getting it set up was quite a large headache.
After setting up online access, I had continual issues trying to transfer money into the account, with little useful information provided by the website/online portal.
Calling customer support was helpful - no issues at all with their service, but this was quite frustrating as it was the result of a fundamental part of their service being unusable and unintuitive from the outset.
I had no further issues after that point, however - but that is hardly surprising for an account that is intended to be left alone anyway.
Signed up for a term deposit with BA due to their competitive rates. The account works fine as it is an uncomplicated product, however getting it set up was quite a large headache.
After setting up online access, I had continual issues trying to transfer money into the account, with little useful information provided by the website/online portal.
Calling customer support was helpful - no issues at all with their service, but this was quite frustrating as it was the result of a fundamental part of their service being unusable and unintuitive from the outset.
I had no further issues after that point, however - but that is hardly surprising for an account that is intended to be left alone anyway.
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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.
