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 for you. 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 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. 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 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.

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.

Page last updated September 16, 2019

5 year 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.

^See information about the Mozo Experts Choice Awards for Term Deposits

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.

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.

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

NAB
NAB Term Deposit review
Overall
6/10
Questionable security

I have had a few security issues with my Term Deposit.

I have had a few security issues with my Term Deposit.

Price
6/10
Features
6/10
Customer service
6/10
Convenience
6/10
Trust
6/10

Fiona | Western Australia

reviewed 12 days ago

St.George
St.George Term Deposit review
Overall
9/10
Ok

St. George is ok.

St. George is ok.

Price
8/10
Features
10/10
Customer service
8/10
Convenience
9/10
Trust
8/10

Don | New South Wales

reviewed about 1 month ago

ME
ME Term Deposit review
Overall
10/10
Great customer service and competitive rates.

I like this bank because it offers great rates for a small investment. Setting up the term...

I like this bank because it offers great rates for a small investment. Setting up the term deposit was very straight forward and easy to organise, and if you need to make any alterations a simple phone call will suffice. I found the process easy and simple to complete.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10

Jill | New South Wales

reviewed 6 months ago