How are term deposits rates doing? AMP Bank offers highest 5-year term

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Since the start of the year, term deposits have been increasing with several banks raising their rates on a weekly basis. 

In the last month, we saw 202 rate changes with only 13 of them being cuts - among them Judo Bank’s increase to 4.05% for five years, and AMP Bank increased to 4.15%. Now AMP leads the pack.

Mozo’s bank expert Peter Marshall says that for now most of the high interest rate competition will be in term deposits instead of savings accounts. 

“Term deposit rates are rising rapidly, following quickly in the footsteps of fixed rate home loans,” he says.

Below we’ve kept track of the top three financial institutions offering some of the highest interest rates found in the Mozo database.

Top 3 Term Deposit leaders

Judo Bank

Term LengthInterest rate  (p.a.)
1-year term2.70%
2-year term3.50%
3-year term3.80%
4-year term3.85%
5-year term4.05%

AMP Bank

Term LengthInterest Rate (p.a.)
1-year term2.90%
2-year term3.65%
3-year term3.90%
4-year term4.05%
5-year term4.15%

MyLife MyFinance

Term LengthInterest Rate (p.a.)
1-year term2.70%
2-year term3.00%
3-year term3.35%
4-year term3.65%
5-year term3.75%

To learn more about term deposits check out Mozo’s tips and guide page.

Term Deposit FAQs

What is a term deposit?

A term deposit is a low-risk investment option offered by many banks, mutual banks and credit unions. The deposit lets you earn interest on a large sum of money at a fixed rate for a specified period of time. That can be anywhere from one month to five years. After you put money in a term deposit you can choose how to have your interest paid: monthly or at maturity.

What are some of the best term deposits?

You’re in luck! Every year we announce the Mozo Expert Choice Awards^ where we crown the best of the best as winners. Some of the banks with the highest rates above have actually won awards for best term deposits.

Do I pay tax on the interest earned from my term deposit?

Yes, any interest earned is considered income and you’ll need to include this on your tax return for the financial year in which it was paid.

What’s the difference between a savings account and a term deposit?

Term deposits have fixed interest rates so you’ll always know how much you’ll earn over the determined term period, but the trade off is that to earn that interest you won't be able to access that money (without penalty). On the other hand, savings accounts have variable interest rates which can be changed by your bank (up or down) at any time and you’ll also have easier access to your money.

Compare term deposits - last updated 18 May 2022

Search promoted term deposits below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.40% p.a.
    2 years
    $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 2021^ for Term Deposits.

    Details
  • Mozo Expert Choice Badge
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.00% p.a.
    2 years
    $5,000
    Yes up to $250,000

    Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity. MyLife MyFinance is part of the Challenger Group.

    Details
  • Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    0.65% p.a.
    3 months
    $10,000
    Yes up to $250,000

    $0 Set up and no ongoing account-keeping fees. Interest rate depends on balance amount. Optional 3,6,9 or 12 month terms. Balances from $10,000.

    Details
  • Mozo Expert Choice Badge
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    2.70% 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 2021^ for Term Deposits.

    Details
  • Mozo Expert Choice Badge
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    2.70% p.a.
    1 year
    $5,000
    Yes up to $250,000

    Competitive rates and fast online application for one year term deposit. Start investing with as little as $5,000 up to $500,000. No account keeping or set up fees to pay. Option to have interest paid at maturity. MyLife MyFinance is part of the Challenger Group.

    Details