2 year term deposits

If you’ve got long term goals (like buying a house) and you’re starting to accumulate some serious cash, a two year high interest earning term deposit can help you grow your savings faster and keep your nest egg safely out of temptations reach.

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What happens if I need to get my money out sooner?

Think carefully before pulling your money out of a term deposit prematurely and subjecting yourself to term deposit ’break fees’ they could cost you between 40% and all of your interest earnings. Don’t do it unless it’s a real emergency. Before you lock in a two year term, check out popular rates for 1 year and 6 month term deposits.

Does the interest payment frequency really matter?

Absolutely! Generally, being paid more frequently is better, as once the interest is yours you can then earn interest on that interest (this is called compounding interest.) The more frequently your interest is paid, the faster it will grow. Let us do the math for you with our handy term deposit calculator.

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Page last updated March 29, 2020

2 year term deposit comparisons on Mozo - rates updated daily Mozo has robust processes to ensure our site is updated to reflect the latest information from providers. There may be the odd occasion where updates are delayed, so please confirm information before purchasing.

  • Promoted

    Online Term Deposit

    1.30% p.a.
    2 years

    $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

    Details Close

Want more? Compare all 87 term deposits in the Mozo comparison engine.

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

^See information about the Mozo Experts Choice Term Deposits Awards

Other savings options

Promoted

AMP

AMP

Saver Account

2.65% p.a. (for $0 to $500,000)

1.05% p.a.(for $0 to $5,000,000)

$0.00

Promoted

MyState Bank

MyState Bank

Bonus Saver Account

2.00% p.a. (for $0 to $150,000)

0.30% p.a.(for $0 and over)

$0.00

Promoted

HSBC

HSBC

Serious Saver

2.10% p.a. (for $0 to $1,000,000)

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

$0.00

Promoted

UBank

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

Citi

Citi

Online Saver

2.05% p.a. (for $0 to $500,000)

0.35% p.a.(for $0 and over)

$0.00

Promoted

ING

ING

Savings Maximiser

1.95% p.a. (for $0 to $100,000)

0.25% p.a.(for $0 and over)

$0.00

Promoted

Bankwest

Bankwest

Hero Saver

1.50% p.a. (for $0 to $250,000)

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

$0.00

Promoted

HSBC

HSBC

Flexi Saver

1.50% p.a. (for $0 to $5,000,000)

0.15% p.a.(for $0 to $5,000,000)

$0.00

Promoted

AMP

AMP

Saver Account

2.65% p.a. (for $0 to $500,000)

1.05% p.a.(for $0 to $5,000,000)

$0.00

Promoted

MyState Bank

MyState Bank

Bonus Saver Account

2.00% p.a. (for $0 to $150,000)

0.30% p.a.(for $0 and over)

$0.00

Promoted

Suncorp

Suncorp

Growth Saver Account

1.90% p.a. (for $0 and over)

0.20% p.a.(for $0 and over)

$0.00

Promoted

ING

ING

Savings Maximiser

1.95% p.a. (for $0 to $100,000)

0.25% p.a.(for $0 and over)

$0.00

Promoted

Bankwest

Bankwest

Hero Saver

1.50% p.a. (for $0 to $250,000)

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

$0.00

Promoted

HSBC

HSBC

Serious Saver

2.10% p.a. (for $0 to $1,000,000)

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

$0.00

Promoted

UBank

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

Citi

Citi

Online Saver

2.05% p.a. (for $0 to $500,000)

0.35% p.a.(for $0 and over)

$0.00

Term deposit resources

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

What is a 2 year term deposit?

A 2 year term deposit is a long term deposit and an ideal way to stash your funds while you earn interest on it for an extended period of time. It’s a good option for people looking to lock their money away and watch their balance grow, while they save for something big like a home deposit or renovation.  

How much can I deposit?

Deposit limits vary from bank to bank but the minimum deposit is usually $1,000. All balance limits are indicated in our 2 year term deposit comparison table or find specific providers limits using our Term Deposits Search Engine.

What will the interest rate be like?

Two year term deposits are usually considered 'long' term deposits, meaning you will generally receive a higher interest rate than you might with a shorter, six month term deposit. Of course, with that in mind, it is still a good idea to shop around to make sure you get a competitive two year term deposit interest rate. Check out Mozo's Term Deposits Interest Rates information page for more information on current term deposit rates.

When will I receive my interest payment?

Depending on which bank you are with, you may receive interest payments monthly, quarterly, six monthly, annually or at maturity. In most cases, receiving your interest more often is beneficial because once you are paid your interest you can start making compound interest on those earnings. Alternatively, most banks give you the option to receive your interest payments in a separate bank account, so that you can use your earnings right away. Read our term deposit reviews to see different providers’ interest rates and features.

Can I access my money before my 2 year term deposit matures?

Like with all other term deposits, accessing your funds before your term matures is not recommended as there are potential heavy early withdrawal costs. If you feel that you will need access to your money over the two-year period, it may be worth considering a high interest savings account instead as they have minimal restrictions and no fees when it comes to withdrawal.

Am I able to deposit more money over the 2 years?

Because a term deposit is designed to accumulate interest on your initial deposit, you can’t keep adding funds to your balance. Once the deal is sealed, you are locked in to the same amount of money (plus your interest earnings) until your term deposit has matured.

What fees will I pay?

When you set up a 2 year term deposit you won’t be slapped with any initial or ongoing account-handling fees. Keep in mind that if you opt to withdraw your money early, you could be hit with a huge penalty fee and cut your interest rate. Similarly, be aware that some banks allow partial withdrawal while others require a full withdrawal of your deposited amount.

Term Deposit Reviews

Westpac Term Deposit review
Overall 9/10
I will be staying with them.

Always had very good service. Helped with a scam problem. Staff are very efficient and friendly.

Read full review

Always had very good service. Helped with a scam problem. Staff are very efficient and friendly.

Price
10/10
Features
9/10
Customer service
9/10
Convenience
9/10
Trust
9/10
Less
Liene, Victoria reviewed 4 days ago
Commonwealth Bank Term Deposit review
Overall 7/10
Could be a little more competitive.

Great online app. Have to have a bit better customer support, but overall not bad. Have been with worse.

Read full review

Great online app. Have to have a bit better customer support, but overall not bad. Have been with worse.

Price
7/10
Features
9/10
Customer service
10/10
Convenience
9/10
Trust
7/10
Less
Rita, South Australia reviewed 5 days ago
ING Term Deposit review
Overall 10/10
Brillant.

Will happily stay with ING, they are a great bank with awesome rates.

Read full review

Will happily stay with ING, they are a great bank with awesome rates.

Price
10/10
Features
7/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Nicki, Queensland reviewed about 1 month ago