How are term deposits rates doing in September?

By Cameron Thomson · · 3 min read
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Recently, term deposit providers have turned away from higher interest rates for longer terms and are instead focusing on shorter term rates. Unfortunately, this also means that rates in the 5% range are no longer really on offer for long term deposits. So, if you’re looking to lock your cash up for a short while, then some of the current term deposit rates on the market could be worth considering.

For much of last year, Judo Bank led the way in offering the best rates across most terms. However, as of September 2024, no one provider is offering leading rates across all terms. 

Most providers are probably predicting that the RBA will cut rates sometime late next year, so shorter rates are where banks are focusing their attention. However, as we get closer to those rate cuts, it’s likely that these short term rates will also be revised down. So if you're considering locking your cash up for a short period, now might be a good time to explore some of the current rates available.

Let’s look at some short-term options: Illawarra Credit Union currently leads with a 5.10% p.a. rate for 12 months while the Australian Unity Term Deposit leads with a 5.10% p.a. rate for 6 months.

On the longer end, Judo Bank currently offers the highest rates for 4 and 5 year terms at 4.60% p.a. while Credit Community First Bank offers 4.75% p.a. for 3 year terms.

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

**Top Term Deposit leaders

Judobank - Highest 4 and 5 year rates

Term Length
Interest Rate  (p.a.)
1-year term
4.90%
2-year term
4.70%
3-year term
4.60%
4-year term
4.60%
5-year term
4.60%
Minimum deposit: $1,000

Illawarra Credit Union - Highest 1 year rate

Term Length
Interest Rate (p.a.)
1-year term
5.10%
10-month term
4.50%
8-month term
4.50%
6-month term
5.00%
3-month term
4.20%
Minimum deposit: $1,000

Credit Union SA - Highest 2 year term rates 

Term Length
Interest Rate (p.a.)
1-year term
4.80%
2-year term
4.80%
3-year term
3.50%
4-year term
3.50%
5-year term
3.50%
Minimum deposit: $1,000

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

**Top refers to the leading rate on the Mozo database

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

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 102 term deposits.
Last updated 14 September 2024 Important disclosures
  • Mozo Expert Choice Badge
    Term Deposit

    5.00% p.a.
    6 months

    $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.

    Compare
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    Details
  • SMSF Term Deposit

    4.95% p.a.
    11 months

    $100,000

    Yes up to $250,000

    Invest your funds in a Beyond Bank Self-Managed Super Fund (SMSF) Term Deposit. Competitive fixed rates. Keep your savings securely locked away and backed by the Government Guarantee. Only available for balances greater than $100,000.

    Compare
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    Details
  • Mozo Expert Choice Badge
    Term Deposit

    4.65% p.a.
    7 months

    $10,000

    Yes up to $250,000

    Minimum $10,000 deposit. No account keeping fees. Terms from 3 months up to 2 years. Interest can be paid into a different bank. Balances up to $250,000 are guaranteed by the Australian Government. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

    Compare
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    Details
  • SMSF Term Deposit

    5.00% p.a.
    6 months

    $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.

    Compare
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    Details
  • Term Deposit

    4.90% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Invest as little as $1,000 on terms from 21 days to 5 years. Open an online account in just 5 minutes. No annual or monthly account keeping fees. Flexible term options to choose from. Interest paid periodically or at maturity. Access to view your account 24/7.

    Compare
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    Details

* 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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Today's term deposit rates