5 year term deposits

If you’re looking to put your money away for the long term, a high interest earning 5 year term deposit might be a good choice. As a cash investment, term deposits are a useful addition to balance risk and diversify your portfolio or keep money for your children’s education but just beware of putting all your eggs in one basket.

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Why should I invest 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. 

How do I know which provider is good for my term deposit?

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. 

You’ll want the highest 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. With Mozo’s comparison table below you can compare side by side the interest rate of different term deposit providers so that you can find one that suits you.

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.

Is a 5 year term deposit the right investment for me?

Isn’t that a million dollar question? Term deposits are certainly a good place to stash your cash but higher returns (and more tax effective investments) may be available in property, shares and managed funds or a number of other asset classes. If you’re talking about large sums it may be worth speaking to a financial planner about diversifying your portfolio.

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5 year term deposit comparisons on Mozo - page last updated July 13, 2020

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

  • Term Deposit

    1.05% p.a.
    5 years

    $10,000

    Yesup to $250,000

      Compare
    Details
  • mozo-experts-choice-2020
    Term Deposit

    1.65% p.a.
    5 years

    $1,000

    Yesup to $250,000

      Compare
    Details
  • Term Deposit

    1.35% p.a.
    5 years

    $1,000

    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.

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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

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Rabobank

Rabobank

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

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

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Citi

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

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Hero Saver

1.25% p.a. (for $0 to $250,000)

0.01% p.a.(for $0 to $5,000,000)

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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)

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HSBC

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Flexi Saver

1.25% p.a. (for $0 to $5,000,000)

0.01% p.a.(for $0 to $5,000,000)

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Westpac

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HSBC

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

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

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Citi

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

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

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

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

Yesup to $250,000

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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

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Heritage Bank

Heritage Bank

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2.20% p.a. (for $1 to $100,000)

0.80% p.a.(for $1 to $250,000)

Yesup to $250,000

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Bankwest

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1.25% p.a. (for $0 to $250,000)

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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.

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.

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

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 17 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 19 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 19 days ago