3 month term deposits

Is your spare cash working as hard for you as it should be? If you don’t need to draw on your savings for a few months, you could give it a boost with a 3 month term deposit.

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How can compound interest work for me?

A truly marvellous invention Albert Einstein once called compound interest ’the greatest mathematical discovery of all time.’ Compound interest is the accumulation of interest, on interest, meaning the more frequently you’re earning interest, the faster your money tree will grow. You can calculate how compounding term deposit interest will work in your favour with our handy term deposit calculator.

Can I access my money before the term deposit period is up?

Technically yes, but it’s not really a good idea to break a term deposit contract as you’ll face ’break fees’ that could cost you some or all of the interest you’ve earned. Banks offer a variety of fixed terms for term deposits so in addition to comparing 3 month terms also look at longer terms like 1 year or 2 year to compare interest rates.

I’ve just started to save, is a term deposit or a high interest savings account right for me?

If you’ve just landed your first job, or finally broken even on debt and want to know where to stash your savings, a high interest savings account or term deposit is a great place to start. Usually term deposits require a minimum of $1000 - $5000 so if you’re not at that stage yet, or you think you’ll need access to that money in the near future, then a savings account is a good place to start.

Page last updated November 14, 2018

3 month 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.

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

Term Deposit Resources

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

FAQs about three month term deposits

Keen to make money on your savings quickly and risk free? A three month term deposit locks away your money for 90 days and earns you a nice bonus at the end through interest. So before you know it your investment will have grown and you'll have more money to your name. Just what you like to hear! Despite choosing to invest your money for a short period of time you can still earn a substantial amount of interest once you've shopped around online for a high fixed rate. While there's often competitive specials on short term deposits they still provide security and safety for your money.

Short v Long Term Deposit, the pros and cons

When it comes to term deposits, there are two main types, short and long-term. This refers to the duration you will invest your savings. One is no better than the other! It all comes down to your financial goals and aspirations as to which type of term deposit best suits you.

Short term deposit: A three month term deposit sits under this banner. You can also lock away your cash for as little as six or even twelve months.

Pros: It matures quickly, then you can hunt around for another special on short-term deposits and re-invest to make even more money.

Cons: A lower interest rate than longer term deposits

Long-term deposit: Keep your savings locked away for one to up to five years.

Pros: The biggest and best interest rates going around. Compare the best long-term deposit rates here.

Cons: You can't dip into the deposit until the term is up, patience is a virtue. Penalties apply for early withdrawals.

3 Month Term Deposit v Savings Account

Three Month Term Deposit

Savings Account


No Fees (Penalties apply for early withdrawals)

Setup and ongoing or annual fees (will vary from bank to bank)


Can't touch funds until term has matured

Able to withdrawal money when you wish

Interest Rates




Can't make additional payments to term deposits

Deposits can be made when you like

Who is a three month term deposit best for?

  • A 'rate tart'! Someone who likes to hunt down the best interest rates on the market. Put your numbers in the Mozo term deposits calculator
  • New to term deposits? If it's all a little foreign to you, test the waters with a three month term deposit. Have a read of some term deposit reviews
  • Someone needing a level of liquidity within their assets.

When is a good time to invest in a three month term deposit?

  • If you're lucky enough to suddenly land yourself a big wad of cash; be it a payout, an inheritance or even a lucky win on lotto, a three month term deposit is a good option for investment. It is a place to store that money until you know exactly what you want to do with your new funds. Sit back and research your investment options for three months while earning interest.
  • It's also a good time to open up a three month term deposit once you've reached your savings goal e.g. for a wedding or a holiday. Keep your hard earned savings out of harm's way until you walk down the aisle or jump on that plane.

What features should I consider when choosing a 3 month term deposit?

Comparing term deposits has never been easier, there's no need to trek around the streets from bank to bank waiting to speak with a teller…now you can rest those legs and let all your fingers do the work by finding the best term deposit rates online. 

The key is to find the highest rate for the term and amount you are investing. A bank that offers John the best rate for his $250,000 three month term deposit will be different to the bank that offers Jan the best rate on her $20,000 three month term deposit. The rate can vary from anything between 1-2%... every bit counts!

Remember interest rates are advertised for a full year of investment (per annum), so when calculating how much interest you will earn over three months you will need to divide the rate by four. E.g. Investing $10,000 in a three month term deposit with 3% p.a. interest rate paid at maturity will earn you $75 in interest.

Use the Mozo term deposit calculator to help you crunch the numbers.

Case study:

The champagne has popped and is free flowing amongst family and friends. There are lots of high fives, a sense of relief and elation as Mr and Mrs Smith have sold their two bedroom unit, making a profit of $250,000 on when they bought it five years ago.

The Smiths haven't bought a new home yet so aren't too sure what to do with the money they've made. Being impulse buyers, the couple are concerned they might spend it all at once before purchasing a new place! So the Smiths start doing some research and realise they can snap up a high interest rate with a short term deposit and wont risk spending their profits before finding their dream home. A short term deposit also suits the Smiths as they know they will need to access the funds in the next couple of months.

With the benefits of the online world they search Mozo for the best interest rates on a three month term deposit with $250,000. Bang, they've hit a jackpot! With 2.7% p.a interest rate paid at maturity the Smiths can earn $1,688. That will cover the new BBQ and outdoor furniture for when they upsize!

Useful Tools

Term Deposit Reviews

Commonwealth Bank
Commonwealth Bank term deposit review
Great term deposit

CBA's term deposit is good. While the rates aren't the best , customer service is amazing and the...

CBA's term deposit is good. While the rates aren't the best , customer service is amazing and the are numerous features to help you.

Customer service

Rlratikah | New South Wales

reviewed about 19 hours ago

St.George term deposit review
Competitive rates and will review on request.

Always very helpful if you have an enquiry and will listen to your requests for better rates and...

Always very helpful if you have an enquiry and will listen to your requests for better rates and so forth.

Customer service

William | New South Wales

reviewed about 23 hours ago

Westpac term deposit review
Getting better deals with them is hard

I always have to ask to get the best rate. They never offer it.

I always have to ask to get the best rate. They never offer it.

Customer service

Mandy | Queensland

reviewed 6 days ago