Today's 3-month deposit options

Have extended financial goals like buying a house? Opt for a three month term deposit to increase your savings with an attractive interest rate. Check out and compare three-year term deposits below!

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3 month term deposits

3 month term deposit comparisons on Mozo

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Last updated 2 November 2024 Important disclosures
  • Term Deposit

    5.00% p.a.
    3 months

    $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

    5.00% p.a.
    3 months

    $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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^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 3 month term deposit?

A 3 month term deposit is a short term deposit, offered by many banks. This short term can be a great place to keep your funds and accumulate interest at the same time. It could be a great option if you want to access your money fairly soon, or feel you can’t commit to a longer term.

Why choose a 3 month term deposit?

A three month term deposit allows you to lock funds away for 90 days and earns you a nice bonus in the form of interest. Before you know it your investment will have grown! 

Plus, while shorter terms tend to come with slightly lower interest rates, you can still find a fairly competitive rate with the likes of Judo Bank, Bank of Sydney and Citi. On top of this, a number of providers often offer special offers on three month terms. Finally, all providers listed on Mozo’s website are backed by the Australian government’s financial claims guarantee scheme. This scheme provides support in the event that your bank fails. Deposits are covered up to $250,000 with authorised deposit-taking institutions.

What are the pros and cons of a 3 month term deposit?

There are two main types of term deposits: short and long. This refers to the duration of time that you will invest your savings. Neither are necessarily better than the other. It really comes down to your financial goals and aspirations, as to which type of term deposit works well for you.With that in mind, let’s have a look at the pros and cons of both. 

Short term deposits: A three month term deposit sits under the shorter term umbrella. You can also lock your money away for as little as six, or even twelve months.

  • Pros: You’ll be able to access your money fairly quickly, after which you can hunt around for another special or short term deposit to reinvest your money into.

  • Cons: Shorter term deposits often come with lower interest rates than longer term deposits.

Long term deposits: With a longer term you can keep your money locked away for one to five years.

  • Pros: Longer terms often come with the highest and most competitive term deposit interest rates. Compare longer term deposits here.

  • Cons: You won’t be able to access your money for a year or longer. If you do need to withdraw your funds early, you may be hit with a penalty fee and a reduced interest rate.

What are the interest rates like on 3 month term deposits?

As a shorter term, it’s unlikely that you’ll be able to find a very high interest rate with a three month term deposit. That is compared with a two or three year term deposit, for example. However, there are of course other perks to a shorter term, e.g. being able to access your money sooner. Plus, if you shop around, there are still a number of competitive rates to choose from. Head to Mozo’s term deposits interest rates information page to review rates available right now.

What is the difference between a 3 month term deposit and a savings account?

Here’s a quick comparison between term deposits and savings accounts, including fees, access, interest rates and payments.


Three Month Term Deposit

Savings Account

Fees

Usually no fees (Penalties may apply for early withdrawals)

Can include setup and ongoing or annual fees (will vary from bank to bank)

Access

It is not ideal to access funds until the term has matured (early withdrawal fees may apply, if you have to access your month before the term ends)

Can withdraw money when you like (although some banks may charge to transfer money out of your savings)

Interest Rates

Fixed

Variable

Payments

Can't make additional payments to term deposits

Deposits can be made when you like

Picture of JP Pelosi
JP Pelosi
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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.

More FAQs about 3 month term deposits

Who is a 3 month term deposit best for?

There are a number of people who a three month term deposit might work for, these include:

  • A rate surfer. Someone who likes to hunt down the most competitive interest rates on the market and surf between providers. 

  • A newbie investor. If you’re new to investing in general, a term deposit could be a fairly low risk way to dip your toe in the water. A three month term deposit especially isn’t too long a commitment to start with. 

  • A goal setter. A three month term deposit could be an option for someone saving for something specific. For example, you might have an event coming up in a few months time, or there might be something specific that you want to buy. Either way a short term could be one way to make sure you don’t dip into your savings beforetime.

When is a good time to invest in a 3 month term deposit?

When to invest in a three month term deposit will really come down to your personal, financial situation. For instance, you might suddenly receive a windfall of cash from a payout, an inheritance from a long lost relative or a lottery win. In this instance you may want to stash your money in a shorter term deposit, while you figure out what to do with it.

Another instance where you may want to lock your money away is when you’ve just reached a savings goal. You may have been saving for a wedding or a holiday and want to make sure that you don’t dip into your hard earned stash. In this case a three month term deposit may be an option to hide your money away until you actually want to use it.

What do I look for in a 3 month term deposit?

Features to look for when choosing a three month term deposit are:

  • The interest rate. A competitive interest is definitely a bonus for any term deposit. Plus, nowadays all that’s needed to compare term deposit interest rates is a quick online search! Scroll up to compare term deposit interest rates on Mozo.

  • The minimum deposit. Most banks will require a minimum amount to put in a term deposit. This could be $1,000, $5,000 or even $10,000.

  • The maximum deposit. Banks will also often put a cap on how much you can deposit. This could be $250,000 or as much as $1 million. Just remember that the Australian government financial claims scheme only guarantees deposits up to $250,000.

  • Interest rate payment options. Can interest payments be made to another bank? Or will you have to set up a transaction account with the bank in question?

  • Early withdrawal fees. In the event that you need to withdraw your funds early, most banks will charge an early withdrawal fee and/or reduce your interest rate. Make sure you read up on the penalties that apply, before depositing your money in a three month term deposit.

Use the Mozo term deposit calculator, to help you crunch the numbers on how much interest you could earn with a three month term deposit

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 won't 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 a 0.70% p.a interest rate paid at maturity the Smiths could earn around $438. 

How can I work out the interest I might earn on a three month term deposit?

Got a particular three month term deposit in mind? Use Mozo’s term deposits calculator to work out how much interest you might earn overall. Just plug in the interest rate and the amount you want to deposit, plus whether you’ll be collecting the interest monthly or at maturity. Bearing in mind that most three month term deposits will probably only give you the option to collect the interest on maturity.

Term Deposit Reviews

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 4 days ago
HSBC Term Deposit
Overall 10/10
Exactly what I want

I love my term deposit accounts. They're easy to manage online, I can choose how long I want to park my money and what to do on expiry. The website is super easy to use and the interest rates are great.

Read full review

I love my term deposit accounts. They're easy to manage online, I can choose how long I want to park my money and what to do on expiry. The website is super easy to use and the interest rates are great.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Julie, Victoria, reviewed 4 days ago
Defence Bank Term Deposit
Overall 9/10
Best bank I have ever dealt with

I have been banking with Defence Bank for over 30 years. They have been fantastic to deal with and always friendly and helpful. Their service is excellent and every interaction I have had with them has been positive. I’m so glad I switched to Defence Bank.

Read full review

I have been banking with Defence Bank for over 30 years. They have been fantastic to deal with and always friendly and helpful. Their service is excellent and every interaction I have had with them has been positive. I’m so glad I switched to Defence Bank.

Price
9/10
Features
9/10
Customer service
9/10
Convenience
9/10
Trust
9/10
Less
Carolyn, New South Wales, reviewed 4 days ago

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