Looking to lock away some cash for the short or long term? Mozo can help you get a top return on your money. We compare term deposit interest rates from 70 banks to help you find the right term deposit for your investment needs.
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Search promoted term deposits below or do a full Mozo database search. Advertiser disclosure.
0.90% p.a.
3 months
$10,000
Yesup to $250,000
AFSL 459645 AFSL 4596450.70% p.a.
6 months
$25,000
Yesup to $250,000
AFSL 459645 AFSL 4596451.15% p.a.
1 year
$10,000
Yesup to $250,000
AFSL 459645 AFSL 4596451.05% p.a.
6 months
$25,000
Yesup to $250,000
AFSL 459645 AFSL 4596450.90% p.a.
1 year
$25,000
Yesup to $250,000
^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.
Promoted
HSBC
Serious Saver
2.10% p.a. (for $0 to $1,000,000)
0% p.a.(for $0 and over)
Yesup to $250,000
Promoted
Citi
Online Saver
2.05% p.a. (for $0 to $500,000)
0.35% p.a.(for $0 and over)
Yesup to $250,000
Promoted
Bankwest
Hero Saver
1.25% p.a. (for $0 to $250,000)
0.01% p.a.(for $0 to $5,000,000)
Yesup to $250,000
Promoted
Bank of Queensland
Fast Track Saver Account
1.85% p.a. (for $1 to $250,000)
0.20% p.a.(for $1 and over)
Yesup to $250,000
Promoted
HSBC
Flexi Saver
1.25% p.a. (for $0 to $5,000,000)
0.01% p.a.(for $0 to $5,000,000)
Yesup to $250,000
Promoted
HSBC
Serious Saver
2.10% p.a. (for $0 to $1,000,000)
0% p.a.(for $0 and over)
Yesup to $250,000
Promoted
Citi
Online Saver
2.05% p.a. (for $0 to $500,000)
0.35% p.a.(for $0 and over)
Yesup to $250,000
Promoted
Bank of Queensland
Fast Track Saver Account
1.85% p.a. (for $1 to $250,000)
0.20% p.a.(for $1 and over)
Yesup to $250,000
Promoted
Bankwest
Hero Saver
1.25% p.a. (for $0 to $250,000)
0.01% p.a.(for $0 to $5,000,000)
Yesup to $250,000
Reviews, news, tips and guides to help find the best term deposit for you.
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.
They are just easy to deal with in store and over the phone.
Read full reviewThey are just easy to deal with in store and over the phone.
Pros are that it's simple to use and understand. They do give loyalty interest rate bonus. However, interest rates are too low.
Read full reviewPros are that it's simple to use and understand. They do give loyalty interest rate bonus. However, interest rates are too low.
Online banking with easy to follow instructions, Secure log on. Always easy to contact if help is needed. Best interest rates I have found.
Read full reviewOnline banking with easy to follow instructions, Secure log on. Always easy to contact if help is needed. Best interest rates I have found.
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