Look beyond the big banks for best term deposit rates

With interest rates stuck at record lows, savers are facing tougher choices than ever when it comes to deciding where to park their hard earned cash. 

Australia’s big four banks have always been a popular choice for term deposits, but choosing the security of a big bank can come at the expense of a competitive interest rate.

Only 12 months ago, the average 2-year term deposit rate offered by the big four banks was 3.13%. Fast-forward to present day and savers are facing a return of just 2.48%. 

“In the current low rate market, savers need to look beyond the big banks to ensure they’re getting the best return on their money, says Mozo’s Head of Data, Peter Marshall.

“Savers should definitely be shopping around and considering some of the smaller banks and mutuals that have the better rates in the market”, he said.

Time to review where to put your savings? Check out our term deposit comparison table below.

Term deposit comparisons on Mozo - last updated 15 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
    3.85% 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
    3.25% 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.

    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.

    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.

    Details
  • Mozo Expert Choice Badge
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.55% 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
  • Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.50% 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.

    Details
  • Boost Saver Account with The Lock Saver Feature
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    2.60% p.a.
    1 month
    $0
    Yes up to $250,000

    Get all the perks of a term deposit but even more flexibility with the Virgin Money Boost Saver. Get up to 2.6%* variable interest when you switch on the Lock Saver Feature to lock your hard-earned savings away. Add money at any time, pay $0 fees and get access to your money with just 32 days’ notice*. Comes bundled with the everyday Virgin Money Go Account. (*Monthly criteria, T&Cs apply)

    Details
  • Mozo Expert Choice Badge
    Online Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.05% p.a.
    1 year
    $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.

    Details
  • Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    2.70% p.a.
    6 months
    $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.

    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.