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.
Read moreUnderstanding how term deposits work is the first step to finding the right bank term deposit for you. Term deposits work much like a savings account, in that you earn interest on the money you put in the account. The catch is, you can’t access the money for a set ‘term’. In return, you often receive a better interest rate than if you were to put the money in a savings account.
There are short term or long term options for locking your money away in a term deposit here in Australia. Most banks offer term deposits which range between 1 month and five years. The longer the term, the higher your interest rate will likely be, and the more you’ll earn on your deposit. Once you’ve chosen your term length and amount, head below to compare bank interest rates for term deposits in Australia.
There are many different factors that can affect the interest rate you receive. Everything from your term duration and deposit amount, to the bank you choose will play some part.
Use our table below to compare the latest term deposit rates from popular banks and institutions. For a customised listing based on your deposit amount and desired investment term, check out our comprehensive term deposit comparison engine. We’ll compare all the Australian banking providers in our database and show you a listing of the interest rates available.
Term deposit interest rates tend to go up and down, depending on how the market is doing and whether or not the Reserve Bank of Australia has made any recent cuts to the official cash rate. Head to Mozo's Term Deposits Interest Rates page for up-to-date information on term deposit interest rates.
Term deposits and savings accounts are both great ways to save some extra cash for the future.
Term deposits are suited for those who know they won’t need access to their money for a set time period. Interest is generally higher than that of a savings account, but be aware that if you do need to take out your money before the end of the term you could be made to pay break fees.
A high interest savings account is a great option for those that need regular access to their money. These accounts are more flexible than term deposits, allowing you to add and withdraw money at any time. Some savings accounts have interest rates that are similar to term deposits so depending on your savings goal they could be a good option.
Page last updated April 6, 2020
Promoted
2.05% p.a.
6 months
$1,000
Safe & Rewarding: Great rates and incentives incl. 0.10% added loyalty bonus and while Judo Bank Term Deposits work for you, they work for Aussie businesses too. All eligible deposits you have with Judo Bank up to $250,000, are guaranteed by the Australian Government under the Financial Claims Scheme.
$1,000,000.00
yes
yes
Read our Mozo Review to learn more about the Judo Bank Term Deposit
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Promoted
1.85% p.a.
6 months
$25,000
Interest payable every one, three or six months (special conditions or reduced rates apply)
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Promoted
2.10% p.a.
11 months
$1,000
Anyone can apply for a Term Deposit with Defence Bank. Lock away your money with a highly competitive rate, starting a with as little as $1,000 deposit. Part of the Government Deposit Guarantee (Financial Claims Scheme) of $250,000 per person.
$1,000,000.00
yes
yes
Read our Mozo Review to learn more about the Defence Bank Term Deposit
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Promoted
1.80% p.a.
6 months
$5,000
Deposits up to $250,000 per customer are guaranteed by the Australian Government.
$5,000,000.00
yes
yes
Read our Mozo Review to learn more about the MyState Bank Online Term Deposit
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Promoted
1.70% p.a.
6 months
$5,000
Option to receive your interest payments either monthly, annually or at maturity so you can make plans. No monthly account or application fees.
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Promoted
1.95% p.a.
6 months
$10,000
Lock away your funds with a special fixed Term Deposit rate of 1.95% for a term of 6 months on deposit amounts of $10,000 or more.
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Read our Mozo Review to learn more about the Transport Mutual Credit Union Term Deposit Special
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Promoted
1.70% p.a.
3 months
$5,000
Competitive rates & no upfront or ongoing fees. Flexible interest payments and investment terms rate payments
$1,000,000.00
yes
yes
Read our Mozo Review to learn more about the Macquarie Term Deposit
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Promoted
1.80% p.a.
3 months
$5,000
Deposits up to $250,000 per customer are guaranteed by the Australian Government.
$5,000,000.00
yes
yes
Read our Mozo Review to learn more about the MyState Bank Online Term Deposit
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Promoted
1.90% p.a.
3 months
$250,000
Highly competitive rates for new to bank funds & a $0 Setup and account-keeping fees. This special offer is exclusive to the 3 month term.
$2,000,000.00
no
yes
Read our Mozo Review to learn more about the Citi Term Deposit Special
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Promoted
1.60% p.a.
3 months
$1,000
No fees whatsoever. Choice of a 1, 3, 4, 6, 9 or 12-month term for deposits from $1,000 - $2 million
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Promoted
1.80% p.a.
3 months
$10,000
Highly competitive rates for new to bank funds & a $0 Setup and account-keeping fees. This special offer is exclusive to the 3 month term.
$2,000,000.00
no
yes
Read our Mozo Review to learn more about the Citi Term Deposit Special
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Promoted
1.55% p.a.
5 months
$1,000
Your savings will be matched to a portfolio of renewable energy projects like wind, solar energy and low carbon buildings. No fees whatsoever. Quick and easy account opening process
$2,000,000.00
Yes
Yes
Read our Mozo Review to learn more about the UBank Green Term Deposit
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Want more? Compare all 86 term deposits in the Mozo comparison engine.
Search now^See information about the Mozo Experts Choice Term Deposits Awards
Promoted
MyState Bank
Bonus Saver Account
2.00% p.a. (for $0 to $250,000)
0.30% p.a.(for $0 and over)
$0.00
Promoted
IMB Bank
Reward Saver Account
1.75% p.a. (for $5,000 and over)
0% p.a.(for $0 and over)
$0.00
Promoted
UBank
USaver with Ultra Transaction Account
1.85% p.a. (for $0 to $200,000)
0.79% p.a.(for $0 to $5,000,000)
$0.00
Promoted
Suncorp
Growth Saver Account
1.90% p.a. (for $0 and over)
0.20% p.a.(for $0 and over)
$0.00
Promoted
Defence Bank
iSaver
1.70% p.a. (for $0 to $1,000,000)
0.05% p.a.(for $0 to $1,000,000)
$0.00
Promoted
Bank of Queensland
Fast Track Saver Account
2.00% p.a. (for $1 to $250,000)
0.20% p.a.(for $1 and over)
$0.00
Promoted
Bankwest
Hero Saver
1.25% p.a. (for $0 to $250,000)
0.01% p.a.(for $0 to $5,000,000)
$0.00
Promoted
Macquarie
Savings Account
2.65% p.a. (for $0 to $250,000)
1.35% p.a.(for $0 to $25,000)
$0.00
Promoted
Defence Bank
iSaver
1.70% p.a. (for $0 to $1,000,000)
0.05% p.a.(for $0 to $1,000,000)
$0.00
Promoted
IMB Bank
Reward Saver Account
1.75% p.a. (for $5,000 and over)
0% p.a.(for $0 and over)
$0.00
Promoted
Suncorp
Growth Saver Account
1.90% p.a. (for $0 and over)
0.20% p.a.(for $0 and over)
$0.00
Promoted
MyState Bank
Bonus Saver Account
2.00% p.a. (for $0 to $250,000)
0.30% p.a.(for $0 and over)
$0.00
Promoted
Macquarie
Savings Account
2.65% p.a. (for $0 to $250,000)
1.35% p.a.(for $0 to $25,000)
$0.00
Promoted
Bank of Queensland
Fast Track Saver Account
2.00% p.a. (for $1 to $250,000)
0.20% p.a.(for $1 and over)
$0.00
Promoted
UBank
USaver with Ultra Transaction Account
1.85% p.a. (for $0 to $200,000)
0.79% p.a.(for $0 to $5,000,000)
$0.00
Promoted
HSBC
Serious Saver
1.85% p.a. (for $0 to $1,000,000)
0% p.a.(for $0 and over)
$0.00
Reviews, news, tips and guides to help find the best term deposit for you.
Are you looking for more bang for your buck? If you're not a risk taker and would rather take a conservative approach when it comes to your money, a term deposit might just be your answer.
With your money locked away for a set period of time at a fixed interest rate, a term deposit will allow your savings to grow without lifting a finger. A term deposit works especially well for those who often dip into their savings. It's hands off until the term has ended! Let's take a look at all the things you need to know when choosing a term deposit.
This page is about personal term deposits, head over to our business banking section if you're after business deposits.
Term refers to the duration of the investment. There are two main types of term deposits that banks offer, Short-term and Long-term. Take the time to consider your financial goals and this will help you decide which term is best for you. For example, are you looking to purchase a car sometime in the next 12 months or are you planning an overseas holiday?
Short-term deposits: Stash your cash for as little as three, six or even twelve months. With shorter terms, the banks are more likely to offer a lower interest rate. If you need to access the money in the near future, a short term deposit may suit you better.
Long-term deposits: A long-term deposit is any period from one year up to say five years. It's likely to be the best interest rate going around. It's ideal for the sensible saver who's looking for continual growth in their savings with no risk. Have a look at Mozo's in-depth list of long-term deposits
Some financial institutions will offer rollover term deposits. This gives you the option of rolling over your investment for another term. So, sit back and watch your savings grow even more. Always check that on that particular term deposit at the time of rollover, you are being offered the best interest rate.
ALSO REMEMBER – There are penalties for early withdrawals from any term deposit!
Unlike a home loan where you choose between a fixed or variable interest rate, a term deposit is fixed i.e. the interest rate will not change. Therefore, if interest rates drop, you don't need to worry when you have a term deposit.
Take the time to work out what you want from your fixed term investment. For once in your life you are given permission to shop, shop, shop! Look around and find the best interest rate to suit the amount you are investing and the most suitable duration of your term deposit.
For the best term deposit interest rates in Australia, search the Mozo term deposits database. This includes Australia's major banks, credit unions and financial institutions.
It's the old age question… what should I do with my money? Is it best for those lifelong, hard earned savings to be invested in a term deposit or just sit in a savings account?
If you prefer not to lock your money away for a fixed term, then a high interest savings account might be better suited to your needs.
With all the financial institutions offering term deposits it can be a little overwhelming as to which one to hand your money over to. Read
some term deposit reviews!
Financial Goals: Have a good think about your financial goals and what you're hoping to achieve with that hard earned money. Throw some figures in the Mozo budget calculator!
Terms: When might you need to access all those savings? If it's in the near
future (three months to a year), go with a short-term deposit. Any
longer, opt for a long-term deposit. Have a play with our term deposit calculator to see how longer terms should increase your earnings.
Interest Rates: Shop around and find a good interest rate to suit your chosen term. To save time and avoid frustration Mozo has made things a lot easier for
you.
Unfortunately you're dreaming if you think the bank might pay interest weekly! Sadly, the banks were clever enough to change the headline interest rate according to the payment period, so you can't sneak in a better deal by choosing a shorter timeframe.
For short-term deposits, interest is usually paid at the end of the term. When it comes to long-term deposits, interest is likely to be paid annually.
The interest payment method is typically via direct credit into your nominated 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 your term deposit will be worth in a certain amount of time, use our Term Deposit Calculator.
When it comes to term deposits, banks like to work in round figures. You can invest in anything from a minimum of $1000 - $Infinity!!!
The balance limits are detailed in our term deposits comparison table above.
The good news is there are no set up, ongoing or annual fees with term deposits. Believe it or not the banks have actually set you free from fees! But always be sure to check the fee details with your bank before signing the dotted line.
There are however hefty penalties for withdrawing your savings before the term has matured. Do everything you can to avoid the EARLY WITHDRAWAL PENALTY.
Some accounts allow a partial withdrawal of your term deposit; others require a full withdrawal. In either case, the banks hit you with:
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. So if anything unforeseen happens to your ADI, you are covered.
So, having decided on your term, interest rate and bank, it's now time to set it all up, and watch as your savings increase without you lifting a finger. Here's what you need when applying for a term deposit:-
P&N Bank staff are some of the friendliest and most helpful that I have ever dealt with. Their products are super competitive and so easy to use.
Read full reviewP&N Bank staff are some of the friendliest and most helpful that I have ever dealt with. Their products are super competitive and so easy to use.
Online application can be confusing and telephone staff cannot always help with what appears to be a disjunctive office. They will however negotiate better interest rate if asked. THE WORST, ANNOYING THEATRE ADS IN THE CIVILISED WORLD.
Read full reviewOnline application can be confusing and telephone staff cannot always help with what appears to be a disjunctive office. They will however negotiate better interest rate if asked. THE WORST, ANNOYING THEATRE ADS IN THE CIVILISED WORLD.
Always had very good service. Helped with a scam problem. Staff are very efficient and friendly.
Read full reviewAlways had very good service. Helped with a scam problem. Staff are very efficient and friendly.
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