12 Month Term Deposit Rates Compared

Longer term deposits mean there’s no reason to put your cash under the mattress. Lock your interest rate in for a 12 month period and boost your savings balance. Compare rates below!

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12 month term deposits

12 month term deposit comparisons on Mozo - last updated 19 March 2024

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  • Term Deposit

    4.75% p.a.
    1 year

    $1,000

    Yes up to $250,000

    Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)

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  • Online Term Deposit

    4.75% 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. Mozo Experts Choice winner for Term Deposit 2022.

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^See information about the Mozo Experts Choice Term deposits Awards

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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 long time to lock away your savings but rest assured, if you've done your homework, investing in a 12 month term deposit can be a great way to maximise your wealth. With a term deposit, the interest rate is guaranteed as long as you don’t have to access your money before the end of the chosen time period.

If you have a long term savings goal, perhaps for a house or an overseas holiday, a 12 month term deposit is an efficient and easy way to help you get there.

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

Generally speaking, the longer the term deposit, the higher the interest rate. However the good news is that if you’re not prepared to lock your money away for more than 12 months, you should still be able to get a reasonable interest rate on a 12 month term deposit.

Who offers 12 month term deposits?:

Most banks and credit munitions offer 12 month term deposits, so be sure to shop around to ensure you get the best rate possible.

Pros and cons of a 12 month term deposit

Locking your savings away for a whole year may seem a little daunting. To make sure you're making the right decision, consider the pros and cons. 

Pros:

  • Although a 12 month term deposit is classified as a short term deposit,  you can still get quite impressive interest rates.
  • A term deposit is a safe and risk free way of making some extra money
  • Unlike with certain savings accounts, there is no criteria you have to meet every month to earn interest.
  • If you choose to, you can easily roll over your term deposit once it reaches maturity.

Cons:

  • It can be very daunting to lock your savings away for a whole year. 
  • You can’t access your money without risking losing the interest you would have otherwise earned.
  • You can’t add money to your term deposit until the term has matured.
  • If you put your money in a 12 month term deposit and the cash rate continues to climb, you won’t benefit from increasing interest rates because the interest rate on a term deposit is decided at the beginning of the term and will not change.

Is a 12 month term deposit right for you?

If you have a lump sum of cash that you won’t need to access for over a year, a 12 month term deposit is an effective and safe way to make some extra money. 

It is important that you are sure you won’t need to access your money for at least 12 months because if you have to withdraw your money before the term deposit reaches maturity, you will most likely have to pay a penalty and you may also lose some if not all of the interest you would have otherwise earned.

A good way to ensure you won’t need to access your term deposit early is to make a budget. If you need help making a budget, check out our free budget calculator!

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JP Pelosi
RG146
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.

What is the minimum and maximum amount I can invest in a term deposit?

The minimum and maximum amounts depend on the criteria set by each bank or financial institution. For example, a Commonwealth Bank term deposit has a minimum of $5,000 and a maximum of $1,999,999 and some banks allow you to open a term deposit with as little as $1,000. 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?

You can withdraw your money,  rollover your funds for another term or reinvest your funds once you've found a higher interest rate.

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