How are term deposits rates doing in April?
In bad news for savers, April term deposit rates in the 5% range are now rare for longer terms. This trend has accelerated following the RBA's recent decisions to reduce the cash rate, which is now feeding through to deposit products.
Generally speaking, rates on terms at 1 year or under look as good or even better than longer term rates. This can work if you're happy to lock your cash up for just a short while.
For context, inflation pressures have eased slightly but remain a concern. Currently, the latest ABS stats show the monthly CPI indicator rose 2.4% in the 12 months to February, following a 2.5% rise in the 12 months to January.
The monthly CPI indicator, excluding volatile items and holiday travel fell to 2.7% in February, down from 2.9% in January. This provides some hope that inflation is trending in the right direction, although it still remains outside the RBA's target band.
When inflation eases it’s typically good news for savers, as their buying power increases.
How term deposits are tracking
For much of last year, Judo Bank led the way by offering the best rates across most terms. But as of April 1, 2025, no one provider that we track is offering leading rates across all terms. Currently, Judo Bank is leading rates between 2 and 5 years while Heartland bank has the highest 1 year term.
Most providers are probably anticipating further RBA rate cuts this year, so the focus remains on shorter rates. However, as potential rate cuts loom, these short term rates may also be revised down further. Keep an eye on this.
Top Term Deposit leaders
- Judo Bank - Highest 2-5 year rates
- Heartland bank - Highest 1 year rate
- Move Bank - Highest 4 month rate
|
Judo Bank |
Heartland Bank |
||
|
Term Length |
Interest Rate (p.a.) |
Term Length |
Interest Rate (p.a.) |
| 1-year term |
4.75% |
1-year term |
4.90% |
| 2-year term |
4.55% |
2-year term |
4.50% |
| 3-year term |
4.45% |
3-year term |
4.25% |
| 4-year term |
4.55% |
4-year term |
4.15% |
| 5-year term |
4.55% |
5-year term |
4.15% |
|
Minimum deposit: $1,000 |
Minimum deposit: $25,000 |
||
MOVE Bank - Highest 4 month term rates
|
Term Length |
Interest Rate (p.a.) |
|
3 month |
4.70% |
|
4 month |
4.85% |
|
5 month |
4.50% |
|
6 month |
4.65% |
|
7 month |
4.50% |
|
Minimum deposit: 5,000 | |
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.