Compare Term Deposits in Australia

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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Term deposit comparisons on Mozo - page last updated September 23, 2020

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

  • Online Term Deposit

    1.00% p.a.
    1 year

    $5,000

    Yesup to $250,000

      Compare
    Details

*Different interest rates apply to different amounts or different interest payment frequencies.

^See information about the Mozo Experts Choice Term deposits Awards

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Compare other savings options

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.

  • 3.00% p.a. (for $0 to $30,000)

    0.40% p.a.(for $0 and over)

    Yesup to $250,000

    Make 5 transactions/month on linked Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.

    Details
  • mozo-experts-choice-2020

    1.65% p.a. (for $0 to $250,000)

    0.15% p.a.(for $0 and over)

    Yesup to $250,000

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

    Details
  • 1.15% p.a. (for $0 to $250,000)

    0.01% p.a.(for $0 to $5,000,000)

    Yesup to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Details
  • 0.85% p.a. (for $0 and over)

    0.01% p.a.(for $0 and over)

    Yesup to $250,000

    Bonus interest when you make a single deposit of $10 or more in a month and no withdrawals

    Details
  • mozo-experts-choice-2020

    1.50% p.a. (for $1 to $250,000)

    0.20% p.a.(for $1 and over)

    Yesup to $250,000

    Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.

    Details
  • 1.55% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yesup to $250,000

    Ongoing bonus rate if you make at least four tap & go™ payments per month with your Everyday Transaction Account debit card. Purchases must be processed in calendar month to be eligible for bonus interest.

    Details
  • 0.80% p.a. (for $0 and over)

    0.05% p.a.(for $0 and over)

    Yesup to $250,000

    Bonus rate for the first 3 months from account opening. The bonus rate offer is only available to new ANZ Online Saver customers who have not held an ANZ Online Saver account during the last 6 months, and apply online.

    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.

What is a term deposit?

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.

How to find the best term deposit for you

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.  

How do I compare term deposits? 

How to compare term deposits

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. 

  • The interest rate column 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. 
  • The minimum deposit column 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. 
  • 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? 

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.

Which banks have the best term deposit rates in Australia?

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:

  • Your deposit amount
  • Investment term 

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.

Term deposit key features to look for

To make sure that you’ll get the best possible return on your investment, the main features to compare term deposits on include:

  • Interest rate. The higher the interest rate the better. Term deposit interest rates are fixed so no matter what happens in the market, the rate that you locked into at the start of your investment will remain for the entire term.
  • Interest payments. If you choose a short term deposit usually interest is paid at the end of the term. For longer terms, interest is usually paid annually.    
  • Investment term. These range anywhere from 1 month to 5 years depending on the financial institution. Most banks have a range of terms to choose from.
  • Minimum deposit. All term deposits require a minimum lump sum investment. $1000 is generally the minimum investment needed to open a term deposit.
  • Automatic rollover at maturity. Your banking provider will notify you close to the end date of the term and list out the options for what you can do at maturity. If you do nothing, your money could automatically get rolled over to a new term

Is money safe in a term deposit? 

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.

What are the pros of term deposits?

  • Bad spending habits and temptations are restricted as your savings are untouchable.
  • A fixed interest rate provides security on your investment.
  • No need to stress if Reserve Bank rates fall.
  • Financial goals can be reached without the risks associated with other investments like shares and property.
  • There are usually no set up or account management fees attached to term deposit accounts.
Pros and cons of term deposits

What are the cons of term deposits?

  • A term deposit can't be topped up until it matures.
  • As tempting as it may be, there's no dipping into the deposit until the end of the term.
  • Penalty fees apply if you have to withdraw your savings early.
  • If interest rates rise during the term you won’t benefit.


Term Deposits vs Savings Accounts

is a term deposit or savings account better

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.

  • If you're a 'commitment phobe' then a long term deposit may not be for you. Therefore, opt for a high interest savings account which is much more flexible and accessible.
  • Penalties apply if you withdraw money from a term deposit before the term has ended. There are no fees for taking out money from a savings account, though you may get reduced interest for a period of time when you withdraw depending on the account’s conditions. 
  • You can't make additional payments to your term deposit. Savings accounts can be topped up when you like i.e. daily, weekly, monthly etc
  • Term deposit rates are fixed whereas the bank has the potential to change interest rates on savings accounts, including offering less or more interest depending on what’s happening in the market. 
  • Guaranteed rate of return. With a term deposit, you are guaranteed to receive the interest rate that you locked in when you opened your account for the full term. Savings accounts are based on variable interest rates which means that your interest earned while you have money in the account can also change.

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 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.

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.

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:

  • Withdrawing all of the money
  • Withdrawing a portion and reinvesting the balance
  • Topping up the balance with additional funds and reinvesting
  • Reinvesting for the same term, and the same lump sum.
  • Reinvesting the same lump sum over a different time period

Checklist for opening a term deposit

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: 

  • Name, address, phone number
  • Proof of identification e.g driver's licence plus Medicare card
  • Your tax file number
  • Details of your nominated bank account from where the funds will be transferred
  • Details (if any) of any other people who will be noted on the Term Deposi
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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 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 be likely 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

BOQ Specialist Term Deposit review
Overall 4/10
Used to be a great bank

I've banked with BOQ specialist bank in Sydney for decades. When they were owned and operated as Investec they were excellent, efficient and responsive to customer requirements. However over the past couple of years they seem to have no management control. Simple maturing fixed deposit transfer requests are ignored or misplaced. The Manager dealing with my accounts for multiple years advised last month he was too busy to handle my account and instead of allocating another relationship manager suggested that I should send future requests to their client service department. Sadly, upon requesting transfer of the next maturing deposit it took several international phone calls and 3 secure messages before anyone paid attention and resolved their internal issues. It seems the bank is in a shambles -

Read full review

I've banked with BOQ specialist bank in Sydney for decades. When they were owned and operated as Investec they were excellent, efficient and responsive to customer requirements. However over the past couple of years they seem to have no management control. Simple maturing fixed deposit transfer requests are ignored or misplaced. The Manager dealing with my accounts for multiple years advised last month he was too busy to handle my account and instead of allocating another relationship manager suggested that I should send future requests to their client service department. Sadly, upon requesting transfer of the next maturing deposit it took several international phone calls and 3 secure messages before anyone paid attention and resolved their internal issues. It seems the bank is in a shambles -

Price
3/10
Features
4/10
Customer service
1/10
Convenience
1/10
Trust
3/10
Less
Jon, Western Australia reviewed 7 days ago
ING Term Deposit review
Overall 8/10
Go orange with ING.

Have been with ING for a while. They started off with very competitive rates for savings accounts however have cut the rates a few times as time goes on, still giving them the edge over other banks but making them slightly less appealing. They don't have a physical store and the wait times can be frustrating when you are on the phone trying to get something sorted so I normally just use the 'contact us' on the app and send an email query. The card is great to have for rebates when travelling as any fees you get charged will be credited back. Overall a good bank.

Read full review

Have been with ING for a while. They started off with very competitive rates for savings accounts however have cut the rates a few times as time goes on, still giving them the edge over other banks but making them slightly less appealing. They don't have a physical store and the wait times can be frustrating when you are on the phone trying to get something sorted so I normally just use the 'contact us' on the app and send an email query. The card is great to have for rebates when travelling as any fees you get charged will be credited back. Overall a good bank.

Price
8/10
Features
7/10
Customer service
8/10
Convenience
6/10
Trust
8/10
Less
Renee, Victoria reviewed 21 days ago
Bendigo Bank Term Deposit review
Overall 1/10
Half a star only

The teller's are giving wrong information out and rude.

Read full review

The teller's are giving wrong information out and rude.

Price
1/10
Features
1/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Ryan, Victoria reviewed 22 days ago