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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2 year term deposit comparisons on Mozo - page last updated July 02, 2020

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

  • Term Deposit

    1.05% p.a.
    2 years

    $10,000

    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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Other savings options

Promoted

Rabobank

Rabobank

High Interest Savings Account

2.25% p.a. (for $0 to $250,001)

0.80% p.a.(for $0 to $250,001)

Yesup to $250,000

Promoted

Bank of Queensland

Bank of Queensland

Fast Track Saver Account

1.85% p.a. (for $1 to $250,000)

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

Yesup to $250,000

Promoted

ME

ME

Online Savings Account

1.80% p.a. (for $0 to $250,000)

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

Yesup to $250,000

Promoted

HSBC

HSBC

Serious Saver

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

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

Yesup to $250,000

Promoted

Citi

Citi

Online Saver

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

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

Yesup to $250,000

Promoted

Bank of Queensland

Bank of Queensland

Fast Track Saver Account

1.85% p.a. (for $1 to $250,000)

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

Yesup to $250,000

Promoted

Rabobank

Rabobank

High Interest Savings Account

2.25% p.a. (for $0 to $250,001)

0.80% p.a.(for $0 to $250,001)

Yesup to $250,000

Promoted

ME

ME

Online Savings Account

1.80% p.a. (for $0 to $250,000)

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

Yesup to $250,000

Promoted

HSBC

HSBC

Serious Saver

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

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

Yesup to $250,000

Promoted

Citi

Citi

Online Saver

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

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

Yesup to $250,000

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.

Picture of Kelly Emmerton
Kelly Emmerton
Money editor

Kelly Emmerton was the Money Editor at Mozo until March 2020. With over 4 years experience writing exclusively in the Australian finance space her in-depth knowledge spans all areas of personal finance, from home loans to travel money. Kelly has a background in communications and when she’s not delving into finance industry stats and product disclosure statements, you’ll find her on the beach reading classic sci-fi.

Term Deposit Reviews

Bank of us Term Deposit review
Overall 10/10
BEST bank in Tassie.

They are just easy to deal with in store and over the phone.

Read full review

They are just easy to deal with in store and over the phone.

Price
9/10
Features
9/10
Customer service
9/10
Convenience
8/10
Trust
8/10
Less
Daniel, Tasmania reviewed 6 days ago
St.George Term Deposit review
Overall 6/10
Ease of use but noncompetitive interest rates

Pros are that it's simple to use and understand. They do give loyalty interest rate bonus. However, interest rates are too low.

Read full review

Pros are that it's simple to use and understand. They do give loyalty interest rate bonus. However, interest rates are too low.

Price
4/10
Features
4/10
Customer service
5/10
Convenience
7/10
Trust
8/10
Less
Phillip, New South Wales reviewed 8 days ago
Rabobank Term Deposit review
Overall 10/10
Simply the best all round banking.

Online banking with easy to follow instructions, Secure log on. Always easy to contact if help is needed. Best interest rates I have found.

Read full review

Online banking with easy to follow instructions, Secure log on. Always easy to contact if help is needed. Best interest rates I have found.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Rosemary, Victoria reviewed 8 days ago