2 year term deposits

Got long term goals like buying a house? A two-year term deposit can help you grow your savings with a better interest rate. Compare two-year term deposits below!

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2 year term deposits

2 year term deposit comparisons on Mozo

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Last updated 4 December 2024 Important disclosures
  • Term Deposit

    4.75% p.a.
    2 years

    $1,000

    Yes up to $250,000

    Great rates and incentives incl. 0.10% added loyalty bonus at renewal. Option to have interest paid to another bank. Winner of the Mozo Experts Choice Awards 2024^ for Term Deposits.

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  • SMSF Term Deposit

    4.75% p.a.
    2 years

    $1,000

    Yes up to $250,000

    Apply digitally in minutes and manage your SMSF Term Deposit. Flexible cash flow management with three interest payment frequencies that suit you: monthly, yearly, or at maturity. Choose from terms of 3 months up to 5 years. No application or monthly account fees but eligibility criteria and terms and conditions apply. Only accessible to SMSFs with two or up to four individual trustees or one corporate trustee.

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  • Term Deposit

    4.70% p.a.
    2 years

    $25,000

    Yes up to $250,000

    Enjoy flexible terms starting from 31 days up to 5 years with a Heartland Bank Term Deposit. Get your interest paid monthly (on selected terms). Your savings are protected by the Government guarantee. Minimum deposit amount of $25,000 up to $1,000,000.

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  • Term Deposit

    3.80% p.a.
    2 years

    $5,000

    Yes up to $250,000

    No set up, monthly service or management fees & choose to invest from $5,000 or more

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  • Advance Notice Term Deposit

    3.80% p.a.
    2 years

    $5,000

    Yes up to $250,000

    A higher competitive fixed interest rate than comparable ANZ Term Deposits. You will need to give ANZ 31 days notice if you wish to withdraw the money prior to maturity. With a minimum investment of $5,000 you can enjoy the certainty of fixed returns over your investment term

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  • Term Deposit

    3.10% p.a.
    2 years

    $25,000

    Yes up to $250,000

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  • Term Deposit

    3.80% p.a.
    2 years

    $1,000

    Yes up to $250,000

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  • Term Deposit

    3.30% p.a.
    2 years

    $5,000

    Yes up to $250,000

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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.

What is a 2 year term deposit?

A 2 year term deposit is a type of long term deposit that offers a great way to stash your funds and watch them grow. It's an ideal option if you're saving for something big, like a home deposit or a renovation project.

The key feature of a 2 year term deposit is its fixed interest rate. When you lock in your deposit, the interest rate is set for the entire 2 year period. This means that regardless of what happens to term deposit or cash rates, the interest rate on your deposit will remain the same for those 2 years.

How much can I deposit for 2 years?

The amount you can deposit varies between banks, but here are some general guidelines:

  • Minimum deposits usually range from $1,000 to $5,000.

  • Some providers cap the maximum initial deposit for certain rates.

  • Larger deposits may be open to negotiation, but often at a lower interest rate.

What are 2 year term deposit interest rates like?

Two year term deposits are usually considered 'longer' term deposits, which means they generally offer higher interest rates compared to shorter terms, like six month deposits. 

However, due to the RBA keeping the cash rate steady for 2024 and inflation remaining somewhat sticky, shorter terms have been offering the highest rates in our database.

For up-to-date information on current term deposit rates, visit our Term Deposits main page.

When will I receive my interest payment?

Generally, term deposit interest is paid monthly, annually, or at maturity—although this can vary depending on the bank.

In most cases, receiving interest more frequently (like monthly) can be beneficial as it allows you to start earning compound interest on those payments. However, keep in mind that opting for more frequent payments might result in a slightly lower interest rate to offset the compounding effect.

Some banks also offer the option to have your interest payments deposited into a separate bank account, allowing you to use your interest right away as supplemental income.

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

While you can access your funds before the 2 year term is up, it's generally not recommended. Early withdrawals often come with costs, such as:

  • Early withdrawal fees

  • Reduced interest rates

  • A notice period of 31 days.

If you think you might need to access your money during the 2 year period, it might be worth considering a high interest savings account instead. While these accounts have variable rates that can change when the provider sees fit, you’ll also have flexibility when it comes to withdrawals (although some account conditions may reduce your interest rate).

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

Term deposits are designed to accumulate interest on your initial balance, so you can't add more funds to your deposit once it's set up. Your initial deposit, plus any interest earnings, will usually be locked in until your term deposit reaches maturity.

What are the pros and cons of a 2 year term deposit?

Pros:

  1. Fixed interest rates provide certainty about your returns.

  2. Can lock in high rates before potential market decreases.

  3. Discourages withdrawals, helping you save more effectively.

  4. "Set and forget" nature makes saving easier.

Cons:

  1. Less flexible than savings accounts if you need to access your money.

  2. If interest rates rise, your locked-in rate might be lower than current market rates.

  3. Early withdrawal typically incurs fees and requires notice.

  4. Can't add more funds to take advantage of good rates.

Picture of JP Pelosi
JP Pelosi
RG146
Managing editor

Managing Editor Jean-Paul (JP) Pelosi leads the editorial team, with over 20 years of experience writing for top outlets like The Guardian, The Sydney Morning Herald and News.com.au. JP's expertise in home loans and property is complemented by his rich background at major financial firms including CommBank, Suncorp and Amex. Holding a Master's in Communications and international experience in journalism, JP combines passion with skill and has a unique ability to apply this editorial experience and financial knowledge to advise the team on how to create engaging financial content for Australian consumers.

2 Year Term Deposit FAQ

What is the difference between a term deposit and a savings account?

A term deposit locks your money away for a set period at a fixed interest rate, while a savings account allows more flexible access to your funds but usually with a variable interest rate.

Which is better, a term deposit or a savings account?

It depends on your financial goals. Term deposits can be better for set-and-forget saving with guaranteed returns, while savings accounts offer more flexibility for accessing your money.

What happens to your term deposit if your bank closes?

In Australia, deposits up to $250,000 per person per institution are protected by the government's Financial Claims Scheme, ensuring your money is safe even if the bank closes.

How and when do you pay tax on term deposit interest?

Interest earned on term deposits is considered income and must be declared on your tax return for the financial year in which you earned it, regardless of when you actually receive the payment.

Can you withdraw a term deposit before maturity?

Yes, but it's not recommended. Early withdrawals usually incur penalties, such as fees and reduced interest rates, and often require a notice period.

Term Deposit Reviews

ING Term Deposit
Overall 8/10
Convenience and performance

Range of accounts, convenience of savings accounts and day to day accounts together.Ease of using website

Read full review

Range of accounts, convenience of savings accounts and day to day accounts together.Ease of using website

Price
9/10
Features
9/10
Customer service
9/10
Convenience
9/10
Trust
9/10
Less
Jan, South Australia, reviewed 14 days ago
ING Term Deposit
Overall 10/10
Convenient and easy to make transactions

ING has a range of different accounts. The savings maximiser is great for short term goals and the term deposit for long term investment. The online site is so easy to use.

Read full review

ING has a range of different accounts. The savings maximiser is great for short term goals and the term deposit for long term investment. The online site is so easy to use.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Jan, South Australia, reviewed 14 days ago
Commonwealth Bank Term Deposit
Overall 8/10
Poor interest rates

I found products , services , very good the down side is there other places with slity higher interest rates other than that there excellent

Read full review

I found products , services , very good the down side is there other places with slity higher interest rates other than that there excellent

Price
6/10
Features
10/10
Customer service
10/10
Convenience
8/10
Trust
10/10
Less
Scott, Queensland, reviewed about 1 month ago

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