5 year term deposits

If you’re looking to put your money away for the long term, a 5-year term deposit might be a good choice. These longer term deposits help to reduce risk because you’re not likely to withdraw the money and spend it, while also allowing it to grow with interest. You’ll want the highest return you can find over five years, so the knowing interest rates available to you is crucial to your decision. Start comparing now!

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5 year term deposits

5 year term deposit comparisons on Mozo - last updated 2 July 2022

Search promoted term deposits below or do a full Mozo database search . Advertiser disclosure
  • Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    -
    -
    Yes up to $250,000

    Earn higher interest if you deposit $5,000 or more. Choose the length of your term, from just one month. Choose how and when you receive interest payments – reinvest or transfer to another bank account. Use internet or mobile banking to check your balance. $1,000 minimum investment amount. All deposits up to $250,000 are protected by the Federal Government’s deposit guarantee

    Compare
    Details
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^See information about the Mozo Experts Choice Term deposits Awards

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Compare other savings options - last updated 2 July 2022

Search promoted savings accounts below or do a full Mozo database search . Advertiser disclosure
  • Save Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.85% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Deposit at least $200 to either Spend or Save account from an external source each month.

    Earn up to 1.85% p.a in interest. No monthly fee to pay. Split your money in up to 10 Save accounts. Track your progress on each of your save accounts. Instant access to cash via PayID and Osko. Deposits guaranteed up to $250k per customer.

    Details
  • Future Saver Account - 14 to 35 years
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    3.00% p.a. (for $0 to $50,001)
    0.05% p.a.(for $0 and over)
    Yes up to $250,000

    Transfer a minimum of $1,000 into your linked Everyday Account and make 5 eligible transactions. Bonus interest criteria waived for account holders 14-17 years of age.

    Enjoy bonus interest each month when you meet the criteria. No monthly fees. Open an account in minutes. Open up to 9 accounts. Transaction round-up for faster saving. Personalised insights and goal tracking. For customers aged 14-35 years.

    Details
  • Youth eSaver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    No Current Offer
    3.25% p.a.(for $0 to $5,001)
    Yes up to $250,000

    3.25% p.a. interest rate on balances up to $5,000; 1.00% p.a. interest rate on balance over $5,000. $0 monthly account fees to pay. Add and withdraw your savings without affecting your interest rate. Comes with an Everyday Youth Account. Available to applicants aged 10 to 17 only.

    Details
  • Mozo Expert Choice Badge
    High Interest Savings Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.10% p.a. (for $0 to $250,001)
    1.00% p.a.(for $0 to $250,001)
    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Kick start your savings with the 4 month introductory variable rate. No fees, no minimum balance, no minimum monthly deposit and no minimum term.

    Details
  • Mozo Expert Choice Badge
    Boost Saver with Go Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.00% p.a. (for $0 to $250,000)
    0.05% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate of 2.00%. Deposit $2,000 each month, make 5 eligible payments from your Go Account and enable the Lock Saver feature. If you are between 18 and 25 deposit $1,000. 32 days notice for withdrawal and T&C's apply.

    Enjoy a high interest savings account bundled with an everyday spending account. No monthly fees. And new customers can get a welcome bonus of 5,000 bonus Virgin Money Points (ends 31/8/22. Offer criteria & T&Cs apply).

    Details
  • Smart Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.00% p.a. (for $0 to $250,001)
    0.05% p.a.(for $0 and over)
    Yes up to $250,000

    Transfer a minimum of $1,000 into your linked Everyday Account and make 5 eligible transactions.

    BOQ’s high interest savings account lets you enjoy bonus interest each month when you meet the criteria. No monthly fees. Link up to 9 eligible transaction accounts. Round up your transactions. For customers aged 36 years and over. Apply in minutes.

    Details

^See information about the Mozo Experts Choice Savings accounts Awards

Term deposit resources

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

Investing in a term deposit for the long term

Term deposits are a safe investment option if you’ve got a lump sum of money that you can put away for a set period of time and let the interest pile up.

There are many benefits of a term deposit over other forms of investments such as knowing exactly how much your return will be. With a term deposit you will lock in the interest rate for the duration of the whole term, so if you’re investing for the long term, like 5 years, you’ll want to make sure that you are getting a good return on that money, not only today but in 5 years time.

Of course, one of the only downsides to a term deposit is that no-one can predict the future so there are a few things you need to consider before you lock your money away for the long term. The first thing is interest rates. Are they likely to go up or down over the term? This can be difficult to predict but if you do think it’s more likely up then down, then it might be a more lucrative for you to choose a shorter term, like a 2 year term deposit. The second key thing to ask yourself if whether you can safely say that you won’t need to access the money in the time that its locked up. Unfortunately, there are break fees with term deposits so by not keeping your money in a term deposit for the full duration could see you pay hefty bank fees.

Comparing term deposits

Term deposits are considered to be a safe investment option and when you are
comparing your options you want to make sure that your investment will be safe.

All of the term deposit providers that are listed on Mozo are covered under the Australian Government’s Deposit Guarantee which guarantees deposits of up to $250,000. This includes online providers like Rabobank, UBank and ING all the way to big banks like NAB, ANZ and the Commonwealth.

You’ll want the best return on your money, so when you are comparing term deposits the interest rate that’s going to be offered should be a big factor in your decision. Mozo’s comparison table above let’s you to compare side by side the interest rate of different term deposit providers so that you can find one that suits you best.

Of course, banks will have different rates depending on the length that you want to invest your money for. If you want to see what rates are offered for different terms other than 5 years, check out our term deposit hub.

How do interest rates for 5 year term deposits compare?

The good news is, as 5 years is generally the longest term you can get with a term deposit, 5 year term deposits, more often than not, come with the highest interest rates around. When it comes to term deposits, usually the longer your term, the higher your interest rate will be. Check out our Term Deposits Interest Rates information page to keep on top of the latest term deposit rates.

Term deposits for self managed super funds (SMSF)

If you've got a SMSF you'll need to take out a business term deposit. If you're looking for the best term deposit options for SMSFs, head over to the Mozo Experts Choice Awards SMSF accounts section to see which providers and terms ranked best according to our money experts.

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JP Pelosi
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

More FAQs about 5 year term deposits

What’s the benefit of choosing a 5 year term?

A 5 year term deposit can be an effective method to put away your money and continually earn interest for the long term. If you have a lump sum of cash that you want to spend on something specific in the future, like say your child’s high school fees, a 5 year term deposit locks away your savings and ensures you won’t dip into them before it matures. Similarly, if you like the security of knowing exactly how much interest you will make on your money, you can lock in an interest rate that lasts the entire term. Because 5 years is on the longer side of term deposits, make sure that you are getting the best return on your funds not only when you make your deposit, but also in the future. 

When can I access my money?

To access your money from your term deposit, you need to wait till the full term of your term deposit is complete - so in this case 5 years. Break fees are a penalty for accessing your money before the full term of your term deposit contract is complete. The exact penalty is at the discretion of your lender but you can expect to be penalised between 40% and all of your interest earnings. (Ouch!) We understand that 5 years is a big commitment, so if there is any reason you may need to access your money before the full term is up, you may be better off with say 2 year term deposit or even just a short term deposit

How often will I receive interest payments?

For a long term deposit, you usually have options for when you receive your payment of your interest earnings. You can choose to receive interest monthly, quarterly, annually or at your term deposits maturity. While you must be patient when it comes to accessing your initial sum put down at the beginning of your term deposit, some banks give customers the option to receive their interest payments in a separate bank account. This means that you can see and use your earnings while the bulk of your money is still locked away. Have a read of our term deposit reviews to see different providers’ interest rates and features.

Can I top up a 5 year term deposit?

Unfortunately, unlike a savings account, there is no ‘top-up’ feature on a term deposit, as it is designed to accumulate interest on the one deposited amount. Once you have made your deposit, your funds are locked away and the key is hidden until your term deposit reaches maturity. To put it simply, nothing goes in or comes outs for 5 years, so if your someone who likes to stash cash on a regular basis, a high interest savings account may be better instead.
Is choosing a longer term deposit always better?

It’s true, you’re more likely to get a higher rate on a longer term deposit and for someone who spends whenever they have extra cash, it could be better to lock those savings away for longer so that they stay savings.

But, one of the downsides to a term deposit is that no-one can predict the future so there are a few things you need to consider. The first thing is interest rates. Are they likely to go up or down over the term? This can be difficult to predict but if you do think it’s more likely up then down, then it might be a more lucrative for you to choose a shorter term.

The second key thing to ask yourself if whether you can safely say that you won’t need to access the money in the time that its locked up. By not keeping your money in a term deposit for the full duration could see you pay hefty bank fees. For other term deposit options and to weigh up different providers, head to our term deposit comparison table.

Are there any extra fees with longer term investment deposit options?

A major benefit of term deposits, is that you are unlikely to encounter extra costs, like set up, annual or ongoing fees. You should always double check with your provider before you make your deposit, just to make sure you’re not paying more for no reason. Do keep in mind though, if you decide to withdraw your money before the end of the 5 year term deposit period, you should expect to be hit with break fees and see your interest rate decreased.

Term Deposit Reviews

Judo Bank Term Deposit
Overall 10/10
Judo Bank has the best Term Deposit offers

Judo Bank has the best Term Deposit rates plus an additional 0.10% loyalty bonus automatically added when the principle is rolled over to a new Term Deposit at maturity.

Read full review

Judo Bank has the best Term Deposit rates plus an additional 0.10% loyalty bonus automatically added when the principle is rolled over to a new Term Deposit at maturity.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Glenda, Tasmania, reviewed about 12 hours ago
ME Term Deposit
Overall 10/10
Staff were extremely patient with all my Q&A

Creating a term deposit with ME Bank required a couple of phone calls but the service was AAAA rated! Very helpful and patient, the staff walked me through the process and was a delightful to work with!

Read full review

Creating a term deposit with ME Bank required a couple of phone calls but the service was AAAA rated! Very helpful and patient, the staff walked me through the process and was a delightful to work with!

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Nigel, Western Australia, reviewed 5 days ago
AMP Bank Term Deposit
Overall 10/10
Great customer service easy process

Just set up a term deposit online. The process was very easy. The only hitch was they didn’t explain welcome letter would be posted even though I requested electronic communication which means you have to wait for it to get your account number to set up online access. I rang them and they were most helpful in providing the account number and stepping me through the setup for online access. A 20-minute wait on the phone but that is the same as all banks now. A very pleasant customer service person who was very patient and helpful.

Read full review

Just set up a term deposit online. The process was very easy. The only hitch was they didn’t explain welcome letter would be posted even though I requested electronic communication which means you have to wait for it to get your account number to set up online access. I rang them and they were most helpful in providing the account number and stepping me through the setup for online access. A 20-minute wait on the phone but that is the same as all banks now. A very pleasant customer service person who was very patient and helpful.

Price
10/10
Features
8/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Robyn, New South Wales, reviewed 18 days ago

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