Are smaller banks offering the best 1-year Term Deposits?
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Getting the best interest rate for your cash often means shopping around for providers who are offering the best rates. While it can be tempting to lock in the longest rate possible with a Alex.Bank - Term Deposit (invitation only)5. 10% p.a.10,000Judo Bank - Term Deposit5. 10% p.a.1,000
You can find out more about how the big four term deposits compare here.
The benefits of choosing smaller banks for term deposits
There are a couple of benefits to signing up for smaller providers, most stemming from the very smallness (and sometimes more customer-focused if the provider is a credit union or mutual bank).
- Competitive rates: As shown, smaller banks are presently offering some of the most competitive interest rates in the market. This is done to attract new customers as they don’t have the same trust that most consumers have in bigger banks.
- Customer-focused approach: Smaller banks are often customer-owned banks that prioritise customer satisfaction over shareholder profits. This can lead to more advantageous terms, personalised service, and a community-centric banking experience.
- Usually safer than you think: The Australian banking sector is a well-regulated machine, so smaller banks aren’t as risky as they would be in other countries. Since most smaller banks in the Mozo database are Authorised-Deposit-taking institutions (ADIs), a deposit of up to $250,000 is guaranteed in case of collapse by the government. However, a banking collapse is very unlikely to happen.
You can check out more about term deposit providers beyond or below just 1-year on our main hub page. We track up to 81 term deposit providers on our database so you’ll have plenty to compare between. Alternatively, you can check out some providers in the tables below.
Term deposit comparisons on Mozo
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Term Deposit
4.75% p.a.
1 year$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.
CompareCompareTerm Deposit
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.
- interest rate
- 4.75% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read reviews and learn more about Judo Bank term deposits
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SMSF Term Deposit
4.75% p.a.
1 year$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.
CompareCompareSMSF Term Deposit
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.
- interest rate
- 4.75% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read reviews and learn more about Judo Bank term deposits
-
Term Deposit
4.40% p.a.
1 year$1,000
Yes up to $250,000
Looking for returns that return? Invest as little as $1,000 or as much as $1,000,000. Apply online today in as little as 5 minutes. Protected by the Australian Government’s Financial Claims Scheme up to $250,000.
CompareCompareTerm Deposit
Looking for returns that return? Invest as little as $1,000 or as much as $1,000,000. Apply online today in as little as 5 minutes. Protected by the Australian Government’s Financial Claims Scheme up to $250,000.
- interest rate
- 4.40% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $1,000,000.00
- Can interest be paid to another bank?
- no
- Automatic rollover
- yes
Read reviews and learn more about Bank of Sydney term deposits
Your selected term deposits
Your selected term deposits
Your selected term deposits
* Different interest rates apply to different amounts or different interest payment frequencies.
^See information about the Mozo Experts Choice Term Deposit Awards
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