12 Month Term Deposit Rates Compared

Longer term deposits mean there’s no good reason to put your cash under the mattress. Lock your interest rate in for a 12 month period and boost your savings balance. Minimum investment amounts apply with a term deposit and some banks will also give you the option of automatic rollovers after one year is up. Start comparing term deposits now.

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12 month term deposit comparisons on Mozo - page last updated September 27, 2020

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

  • Online Term Deposit

    0.90% 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.

About 12 month term deposits

A year might seem like a very long time but rest assured, if you've done your homework, investing in a 12 month term deposit can work in your favour to maximise your wealth. A term deposit is where the interest rate is guaranteed not to change therefore your savings grow over the year. If you have a long term savings goal perhaps for a house or an overseas holiday, a 12 month term deposit is a good way to achieve those financial ambitions.

The key features of a 12 month term deposit?

Locking your savings away for a whole year may seem a little daunting, as a lot can happen in 12 months with the market and your personal financial situation. So take the time to consider the following features before taking the leap into the world of term deposits.

  • Interest Rate: Unlike a home loan where you choose between a variable or fixed interest rate, a term deposit is always locked in and guaranteed not to change. The interest rate offered on a 12 month term deposit is generally higher than a three or six month term deposit. Also, the more money you're going to invest the better the rate. For the best one year term deposit interest rates in Australia, search the Mozo database right here.
  • Terms: This refers to the duration of your term deposit, how long you will invest the funds. A 12 month term deposit is regarded as a short-term deposit. Anything longer than a year is considered long-term. Have a look at Mozo's in-depth list of long-term deposits.
  • Amount: The banks want your money! The minimum deposit amount is $1000 and there's no upper limit.
  • Fees: Believe it or not, it doesn't cost a cent to open a term deposit. But if you break the term deposit before the end of the fixed term, you might have to pay break cost fees.

What interest rates can you get with a 12 month term deposit?

If you shop around, you can generally find a higher interest rate with twelve month term deposits. While the rates on offer for a twelve month term deposit may not be quite as high as what is offered with a five year term deposit, you will, more often than not, be able to find a rate higher than what is offered with a shorter, three or six month term. So it's really up to you and your individual needs, as to whether you want to opt for a shorter term deposit with a lower interest rate, where you can access your funds sooner, or a longer term deposit where your money will be locked away for a considerable period of time, but will most probably benefit from a higher interest rate. Check out Mozo's Term Deposits Interest Rates information page for more information on term deposit rates available right now.

Is a 12 month term deposit right for you?

Do you have a large amount of cash you're not sure what to do with? Are you someone that doesn't like taking risks and would rather take a conservative approach when it comes to money? If so, a 1 year term deposit may just suit you and your savings.

Fair enough though if you feel a little scared at the thought of opening up a one year term deposit, especially given you can't access the funds over the term without penalties. So it's important to do a budget that ensures you can survive a year without the funds in your term deposit. Also make sure you have an emergency stash of cash to avoid penalties for dipping into the deposit before maturity.

Crunch some numbers in the Mozo savings goal calculator.

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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 FAQs about 1 year term deposits 

When will interest be paid on a one year term deposit?

Interest can be paid monthly, quarterly, bi-annually, annually or on maturity. Discuss the options with your bank.

How is the interest paid?

Usually 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.

How many term deposits can I have?

As many as you like, there's no limit.

How much money do I need to open a 12 month term deposit?

A minimum of $1000.

How much does it cost to open a term deposit?

It's free!

How do you deposit money into a term deposit account?

The financial institution can debit funds directly from your nominated bank account or you can transfer funds into a new term deposit

Can I open a twelve month term deposit online or will I need to go into a bank? 

In most cases, the beauty of the online world allows you to open a term deposit with the click of a few buttons but you may have to visit branch

Can I deposit money into my account during the term?

You can't make additional deposits until the term has ended

Can I dip into my account before maturity?

Yes but it will come at a cost! Do everything you can to avoid the early withdrawal penalty.

Is my money safe in a term deposit?

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 your pennies up to this amount are safe if anything unexpected happens to your ADI.

What happens at the end of the 12 months?

Withdrawal your money and go on a shopping spree, rollover your funds for another term or reinvest your funds once you've found a higher interest rate.

Useful Tools

Term Deposit Reviews

MyState Bank Term Deposit review
Overall 9/10
Friendly and professional service.

Friendly and professional care and advice given when face to face in branch (Launceston). Easy to navigate their online services - in particular when setting up an online term deposit.

Read full review

Friendly and professional care and advice given when face to face in branch (Launceston). Easy to navigate their online services - in particular when setting up an online term deposit.

Price
9/10
Features
8/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Christopher, Tasmania reviewed 3 days ago
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 12 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 25 days ago