How are term deposits rates doing? AMP Bank leads the pack

By Maria Gil · · 2 min read
Fact Checked
Advertiser disclosure
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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 582 rate changes with only 9 of them being cuts - among them Judo Bank’s increase to 4.35% for five years, and AMP Bank increased to 4.40%. Now AMP leads the pack.

However, recently Challenger Bank earned back its 3rd place seat, pushing Great Southern Bank off the top three.

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 term3.45%
2-year term3.85%
3-year term4.10%
4-year term4.25%
5-year term4.35%

AMP Bank

Term LengthInterest Rate (p.a.)
1-year term3.50%
2-year term3.90%
3-year term4.15%
4-year term4.30%
5-year term4.40%

Challenger Bank

Term LengthInterest Rate (p.a.)
1-year term3.15%
2-year term3.40%
3-year term3.80%
4-year term4.00%
5-year term4.05%

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 11 August 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
    3.25% p.a.
    1 year
    $5,000
    Yes up to $250,000

    Competitive rates for one year term deposits. Start investing with as little as $5,000 to $1,000,000. For personal customers who want to invest above $500,000, or for non-personal customers, contact Challenger’s call centre to discuss account application options.

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    Details
  • Hot Deal Earn a competitive rate of 3.24% half yearly or 3.25% annually on an 18 month term
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.10% p.a.
    1 year
    $5,000
    Yes up to $250,000

    Deposit of $5,000 up to $5 million. Choose a term from 1 month to 5 years. Select a range of convenient interest payment options. $0 establishment or ongoing fees. Easy tracking using the mobile banking app.

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    Details
  • Mozo Expert Choice Badge
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.25% p.a.
    1 year
    $1,000
    Yes up to $250,000

    Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly (Terms and Conditions apply)

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    Details
  • Mozo Expert Choice Badge
    Online Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.35% p.a.
    2 years
    $5,000
    Yes up to $250,000

    No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.

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    Details
  • Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.30% p.a.
    1 year
    $5,000
    Yes up to $250,000

    Competitive interest rates available. Terms ranging from 1 month to 5 years. No account fees to be paid. Interest can be paid to another account. Option to choose when interest is paid. Minimum deposit of $5,000 required.

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    Details