6 month term deposits

Diligent savers deserve to be rewarded and in this climate there are plenty of great places to stash your cash and super-size your interest. If you won’t need to access your savings in the short to medium term, a six month term deposit could be right for you.

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How much interest will I earn?

The interest you earn on your term deposit will depend on the interest rate of the banking provider you choose, the length of your term deposit and the frequency of interest payments. 

Is there a penalty for accessing my term deposit before the full term is up?

Unfortunately yes If you want to take your money out early you’ll typically face a ’break fee’ and a deduction of some, or all of the interest you earned. If you need ready access to your cash, a high interest savings account could be a better choice or look at shorter fixed terms like 3 month or 1 month term deposits.

Should I make additional savings during the term deposit time?

It will depend on your provider whether you’re able to make additional contributions to your term deposit, but typically not. Keeping up the savings habit is a good idea, but you’d be better off with a high interest savings account where some providers reward you for making regular extra contributions.

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6 month 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.
    6 months

    $10,000

    Yesup to $250,000

      Compare
    Details
  • In partnership with AFSL 459645
    Term Deposit

    1.10% p.a.
    6 months

    $25,000

    Yesup to $250,000

      Compare
    Details
  • mozo-experts-choice-2020
    In partnership with AFSL 459645
    Term Deposit

    0.70% p.a.
    6 months

    $25,000

    Yesup to $250,000

      Compare
    Details
  • In partnership with AFSL 459645
    Term Deposit

    1.40% p.a.
    6 months

    $150,000

    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.

Other savings options

Promoted

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

Promoted

Citi

Citi

Online Saver

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

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

Yesup to $250,000

Promoted

Bankwest

Bankwest

Hero Saver

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

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

Yesup to $250,000

Promoted

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)

Yesup to $250,000

Promoted

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

Promoted

HSBC

HSBC

Flexi Saver

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

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

Yesup to $250,000

Promoted

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

Promoted

Citi

Citi

Online Saver

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

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

Yesup to $250,000

Promoted

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)

Yesup to $250,000

Promoted

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

Promoted

Bankwest

Bankwest

Hero Saver

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

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

Yesup to $250,000

Term deposit resources

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

Why invest in a six month term deposit?

A six month term deposit is ideal for those with a large amount of cash who aren't too sure what to do with it.

With a term deposit the interest rate is fixed on your investment therefore you can sit back, relax and watch your funds grow for half a year. Most big banks and credit unions offer six month term deposits, but be sure to shop around for the best rate on the amount you are investing.

What kind of interest rate can I get with a six month term deposit?

Generally the longer the term you opt for, the higher the interest rate you'll benefit from. That said, it is still possible to get a higher interest rate with a six month term. Check out our Term Deposits Interest Rates information page, to keep on top of the latest term deposit rates.

Term Deposits v Savings Account

Features

Short-Term Deposits

Long-Term Deposits

Savings Account

Interest Rates

Fixed – lower rates than long term

Fixed – higher rates than short-term

Variable

Term

Three, six or twelve months

One to five years

Indefinite

Fees

No fees

No fees

Set up, monthly and or annual fees

Access

Can't access funds until term has matured

Can't access funds until term has matured

Withdrawal money when you want

What are the advantages of six month term deposits?

The Australian Government guarantees term deposits of up to $250,000 with Authorised Deposit-taking Institutions (ADIs) such as your bank, credit union or building society. So your pennies up to this amount are safe if anything unexpected happens to your ADI

  • You can make realistic financial goals, as a fixed interest rate allows you to calculate exactly how much you will earn by the end of the six months. Plug some figures into the Mozo savings goal calculator to see for yourself
  • No work required, sit back and watch your funds grow
  • Ability to re-invest at the end of the term, so you don't miss out on a rise in interest rates unlike a long- term deposit
  • No risks of seeing your funds decrease such as with investments in shares or property.

Disadvantages to six month term deposits, what are they?

  • Be aware hefty penalties apply for withdrawing the funds before the six months is up
  • Lower interest rates than for a long-term deposit

You can't top up the funds until the term has matured

When is interest paid on a TD?

It is important to discuss with your financial institution or credit union how often or when interest will be paid on your six month term deposit. Interest can be paid monthly, quarterly, semi-annually, annually or on maturity. With a six month term deposit it is likely to be calculated monthly or at the end of the term.

  • Remember: When you are investing for only half of the year with a 4% p.a interest rate, you will earn 2% on your deposit. E.g. If Mrs Jones invests $10,000 in a six month term deposit with a 4% interest rate paid at maturity, she will earn $200.
  • You don't need to be a mathematician to work out how much interest you will earn! Let the Mozo term deposit calculator do all the hard work.
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 on 6 month term deposits

What happens to a six month term deposit at maturity?

  • Withdrawal: By all means you can withdrawal your money when the term has ended and go out and spend up big!
  • Rollover: Some banks offer the option to automatically rollover your investment with them for another term
  • Reinvest: Grow your funds even further. The market may have changed since you first opened up the term deposit so shop around online and find a high interest rate and reinvest those savings. Check out the best term deposits here!

What you need to apply for a six month term deposit?

  • Name, address, phone number
  • Proof of identification e.g. driver's licence plus Medicare card
  • Your tax file number
  • BSB and account number of the bank account from where the funds will be transferred from
  • Details (if any, such as your partner) of any other people who will be noted on the Term Deposit.

Term Deposit Case Study

Sadly for Mr Jones his great grandmother from Italy, who he's never met, has passed away. To the 30 year olds surprise, he has been fortunate enough to inherit a whopping $100,000! With mixed emotions he heads to the pub and shouts his mates a few rounds of drinks and over beers they discuss what he should do with his inheritance.

Being a sensible and conservative man when it comes to money, Mr Jones learns that the best place for this big wad of cash is a term deposit. He plans on popping the question to his girlfriend in the next few months so he knows a wedding is on the cards and they aren't cheap. If all goes to plan he'll need to access the money in six months.

Looking online Mr Jones learns that he can secure a high interest rate of 3.75% with a six month term deposit, therefore maximising his wealth before the 'big day'. When the deposit matures Mr Jones would have earned $1,875 in interest that can go towards a beautiful diamond ring.

Helpful Tools:

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