How are term deposits rates doing in December?

By Cameron Thomson · · 3 min read
Fact Checked
Advertiser disclosure
a couple having a cuppa

In bad news for savers, term deposit rates in the 5% range are no longer as common for longer terms. Generally speaking, rates on terms of under two years look better at present. This can work if you’re happy to lock your cash up for just a short while.

For much of last year, Judo Bank led the way by offering the best rates across most terms. But as of December 2024, no one provider is offering leading rates across all terms. With that said, Judo Bank does currently have the highest rates on our database for terms between 2 and 5 years.

At the moment, most providers are probably predicting that the RBA will cut rates sometime next year, so the focus remains on shorter rates. However, as potential rate cuts loom closer, these short term rates may also be revised down. Keep an eye on this.

For now, let’s look at some short-term options: Heartland Bank's Term Deposit leads with a 5.10% p.a. rate for 12 months while Goldfields money leads 3 month terms at a 4.85% p.a. rate.

On the longer end, Judo Bank currently offers a rate of 4.50% p.a. for 5 and 4 year terms. Meanwhile, Judo’s 3 year term leads at 4.65% p.a. and leads 2 year terms at a 4.75% p.a. rate. 

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

Judo Bank - Highest 2-5 year rates

Term Length
Interest Rate  (p.a.)
1-year term
5.00%
2-year term
4.75%
3-year term
4.65% 
4-year term
4.50%
5-year term
4.50%
Minimum deposit: $1,000

Family First Bank (Special Term Deposit) - Highest 1 year rate

Currently, the highest 1 year term deposit rate is Heartland Bank's Term Deposit at 5.10% p.a. for a 12 month term.

Heartland Bank
Term Length
Interest Rate (p.a.)
1-year term
5.10%
2-year term
4.70%
3-year term
4.60%
4-year term
4.45%
5-year term
4.50%
Minimum deposit: $25,000

Goldfields Money - Highest 1 and 2 month term rates 

Term Length
Interest Rate (p.a.)
1 month
3.90%
2 month
4.30%
3-month
4.85%
6-month
4.90%
9-month
4.75%
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.

Compare term deposits

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 91 term deposits.
Last updated 16 December 2024 Important disclosures
  • Term Deposit

    5.05% 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
    Go to site
    Details
  • Term Deposit

    4.90% p.a.
    4 months

    $5,000

    Yes up to $250,000

    Grow your hard-earned savings with a P&N Bank Money Maker Term Deposit. Enjoy competitive, guaranteed fixed term rates. Interest paid at maturity for terms between 2 and 12 months. Interest rates may vary depending on the terms you select. Minimum amount of $5,000. Maximum amount of $1 million.

    Compare
    Go to site
    Details
  • Standard Term Deposit

    4.90% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Invest from as little as $1000. No monthly fees. Interest is paid at maturity. Range of terms available from 1 month to 3 years. Manage via online banking or via app.

    Compare
    Go to site
    Details
  • Term Deposit

    4.00% p.a.
    6 months

    $5,000

    Yes up to $250,000

    Compare
    Find out more
    Details

* Different interest rates apply to different amounts or different interest payment frequencies.

^See information about the Mozo Experts Choice Term Deposit Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Today's term deposit rates