term deposits

Compare Term Deposits in Australia

Mozo compares term deposit interest rates from 70 banks, mutual banks and credit unions in Australia, to help you find the right account for your investment needs.

A term deposit is a cash investment made with a financial institution for a fixed period of time. This fixed period of time is known as a term. Providers offer shorter and longer terms, lasting anywhere from one month to five years. A fixed interest rate is applied to the deposit over the length of the term, meaning your return at the end should be substantially more - as long as you don’t withdraw it early!

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Term deposit comparisons on Mozo - last updated 24 January 2022

Search promoted term deposits below or do a full Mozo database search. Advertiser disclosure.
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    Personal Term Deposit

    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    1.20% p.a.
    2 years
    $5,000
    Yes up to $250,000

    Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity.

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    Term Deposit

    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    0.40% p.a.
    3 months
    $10,000
    Yes up to $250,000

    $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.

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    Details
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    Personal Term Deposit

    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    1.10% p.a.
    1 year
    $5,000
    Yes up to $250,000

    Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity.

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    Mozo Experts Choice 2021
    Term Deposit Special

    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    1.10% p.a.
    8 months
    $250,000
    Yes up to $250,000

    8 Month Term Deposit special. Minimum $250,000 deposits with no setup or monthly fees. Awarded Australia’s Best Credit Union in the 2021 Mozo Experts Choice Awards for Australia’s Best Banking.

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  • Featured Product
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    Online Term Deposit

    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    1.20% 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

    Compare
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    Details
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    Term Deposit

    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    0.40% p.a.
    3 months
    $10,000
    Yes up to $250,000

    $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.

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    Details
  • Featured Product
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    Online Term Deposit

    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    0.80% 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

    Compare
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    Details
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^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.

Compare other savings options

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    AMP Saver Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.35% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 to $5,000,000)
    Yes up to $250,000

    From 1 Feb 2022, minimum deposit of at least $250 in the previous month.

    An ongoing total variable bonus rate of up to 1.35% per annum will apply each month from 1 Feb 2022 if you deposit $250 in the previous month. Available only on balances up to $250,000. AMP Bank, winner of the Mozo Experts Choice Awards 2021 in the Savings category.^

    Go to site
    Details
  • placeholder
    Boost Saver with Go Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.20% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate of 1.20%. Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.

    Enjoy a savings account bundled with a spending account. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

    Go to site
    Details
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    Grow Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.65% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.

    Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.

    Go to site
    Details

^See information about the Mozo Experts Choice Savings accounts Awards

Term deposit resources

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

FAQ

January term deposits market update

As we head into 2022, things are starting to look up for term deposit interest rates. Our Mozo research team noted a number of interest rate increases from banks including Macquarie, Bank of Sydney and ME Bank in the past month.

In fact, the average interest rate for a $25,000, 1 year term has actually increased marginally since the beginning of December 202from 0.48% p.a. on 1 December 2021 to 0.50% p.a. in early January 2022.*

Term deposit interest rate increases in January 2022

A number of term deposit providers have increased interest rates including Macquarie, Bank of Sydney and Hume Bank. These banks increased rates by as much as 50, 55 and 60 basis points. 

AMP Bank also made a number of interest rate increases putting a number of its term deposits in the top spots in the Mozo database. Some of its current competitive rates are:

  • 1.00% p.a. for a six month term

  • 1.00% p.a. for a 9 month term

  • 1.35% p.a. for a 2 year term

  • 1.45% p.a. for a 3 year term

  • 1.75% p.a. for a 4 year term

  • 1.85% p.a. for a 5 year term

AMP Bank’s recent increases saw it take top spots previously held by Judo Bank for a number of longer terms. Judo Bank’s 3 month and 1 year term deposits are currently sitting in the top spots in the Mozo database for their respective terms. They offer a 0.88% p.a. interest rate and 1.12% p.a. interest rate.

Scroll up to see what other term deposits are available in Australia right now.

Updated by: Tara McCabe, 6 January 2022.

*Averages calculated using data available in the Mozo database, correct as of 6 January 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? 

How to 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. 

  • The term deposit provider: All term deposit providers that are listed on our site are covered under the Australian government deposit guarantee scheme up to $250,000.


Is now a good time to invest in a term deposit? 

In 2021 Mozo has noted a number of providers actually increasing term deposit interest rates. This is despite interest rates still being fairly low across the board. Read more about this in Mozo’s monthly update above.

As well as interest rates potentially creeping upwards, right now due to the Covid-19 pandemic, 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.

Pros and cons of term deposits

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

Is a term deposit or savings account better

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.
Show transcript

Term deposits vs savings accounts

Pros of a term deposit:

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

Picture of JP Pelosi
JP Pelosi
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

How much can I put into a term deposit? 

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.  

Will I pay fees on a term deposit?

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:

  •  Reduced interest on your deposit 
  • Early withdrawal penalty fees

How long do I need to keep my money in a term deposit for?  

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. 

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.  

Will I need a linked account from the same bank as my term deposit?

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.     

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.   

Are interest rates on term deposits negotiable? 

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.   

What does a term deposit automatic rollover or renewal mean?

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.

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. 

Will I need to go to a bank branch or can I apply online?  

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.  

Where can I find other useful tools to help me? 

Mozo has a range of resources and term deposit guides available to help you better understand the ins and outs of term deposits.

Term Deposit Reviews

AMP Bank Term Deposit
Overall 1/10
Useless customer service. Avoid

I had trouble with AMP when as a lawyer I was after the held up the payment of superannuation to a deceased estate. I thought that the AMP bank may give better service. They will transfer money to themselves within hours of your application but then you cease to exist. Won’t answer your phone calls. No call back and an email response to phone them. Totally useless.

Read full review

I had trouble with AMP when as a lawyer I was after the held up the payment of superannuation to a deceased estate. I thought that the AMP bank may give better service. They will transfer money to themselves within hours of your application but then you cease to exist. Won’t answer your phone calls. No call back and an email response to phone them. Totally useless.

Price
7/10
Features
5/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Greg, Victoria, reviewed 12 days ago
Bendigo Bank Term Deposit
Overall 7/10
These rates are poor

Initially all of these products were excellent but with the change of rates we now don’t receive a good return as a loyal customer.

Read full review

Initially all of these products were excellent but with the change of rates we now don’t receive a good return as a loyal customer.

Price
3/10
Features
6/10
Customer service
9/10
Convenience
9/10
Trust
9/10
Less
Grahame, Victoria, reviewed 19 days ago
Rabobank Term Deposit
Overall 1/10
A bank that I would never trust again

Rabo threatened to block my account which I had for over 12 years if I did not provide a significant amount of extra information. The forms and requirements were onerous. I was left with no choice but to cancel my term deposit and pay an early termination fee. And withdraw all my funds before they froze my account. This bank is outrageous. They were happy with all the information I supplied 12 years ago but now they required significant additional information.

Read full review

Rabo threatened to block my account which I had for over 12 years if I did not provide a significant amount of extra information. The forms and requirements were onerous. I was left with no choice but to cancel my term deposit and pay an early termination fee. And withdraw all my funds before they froze my account. This bank is outrageous. They were happy with all the information I supplied 12 years ago but now they required significant additional information.

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Mark, New South Wales, reviewed 20 days ago

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