New to term deposits? Here’s the reason why you should try one
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Knowing what kind of savings vehicle to park your cash in can be overwhelming , especially for those who are just getting started. However, term deposits are one kind of savings vehicle that should be on your radar.
What is a Term Deposit?
A term deposit is a fixed-term investment held at a financial institution. You invest a lump sum of money for a predetermined period, which could range from a month and up to 5 years. During this term, your money earns interest at a fixed rate, which is usually higher than a regular savings account.
One of the main draws of a term deposit is its predictability. The interest rate is fixed, meaning you know exactly how much your investment will earn over its term. This can be particularly appealing in times of economic uncertainty, where other investments might be subject to market fluctuations.
Why is now a good time for Term Deposits?
At the moment, some of the best term deposit rates on offer are sitting at or above 5%. However, the financial conditions that led to these rates are beginning to cool, with recent CPI data showing a slowing rate of inflation.
So why is this important? Basically, the Reserve Bank is likely to hold rates for the next few meetings. This means that many savings and term deposit providers are likely to adjust rates downward. By locking in a good rate now, you’re ensuring that your money is earning a guaranteed fixed rate for however long you need it to.
How to find a good term deposit rate
There are a couple of ways of finding good term deposit rates, however there are many providers. So, to make the process easy, you can use our term deposit comparison tools to find a provider with the features and rates you’re looking for.
Next up, getting a good idea about the average market rates can help you contextualise rates on offer. Using our database, the Mozo data team has put together some handy averages for all the term deposit rates we compare by term length.
| Term | Rate | Term | Rate |
| 3 month | 3.76% | 2 years | 4.09% |
| 6 month | 4.27% | 3 years | 3.93% |
| 9 month | 4.26% | 4 years | 3.81% |
| 1 year | 4.60% | 5 years | 3.85% |
If you’re looking to get started now, you can head over to our term deposit hub page. Alternatively, you can check out some of the providers in the tables below…
Term deposit comparisons on Mozo
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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.
CompareCompareStandard Term Deposit
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.
- interest rate
- 4.70% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $999,999.00
- Can interest be paid to another bank?
- Yes
- Automatic rollover
- Yes
Read reviews and learn more about BCU Bank term deposits
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Term Deposit
5.15% 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.
CompareCompareTerm Deposit
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.
- interest rate
- 5.00% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read reviews and learn more about Judo Bank term deposits
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Term Deposit
4.00% p.a.
6 months$5,000
Yes up to $250,000
CompareCompareTerm Deposit
- interest rate
- 4.50% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $5,000,000.00
- Can interest be paid to another bank?
- no
- Automatic rollover
- yes
Read reviews and learn more about Bendigo Bank term deposits
-
Term Deposit
3.60% p.a.
6 months$5,000
Yes up to $250,000
No set up, monthly service or management fees & choose to invest from $5,000 or more
CompareCompareTerm Deposit
No set up, monthly service or management fees & choose to invest from $5,000 or more
- interest rate
- 4.00% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read reviews and learn more about Westpac term deposits
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Term Deposit
3.60% p.a.
6 months$1,000
Yes up to $250,000
CompareCompareTerm Deposit
- interest rate
- 4.00% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read reviews and learn more about BankSA term deposits
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Advance Notice Term Deposit
3.50% p.a.
6 months$5,000
Yes up to $250,000
A higher competitive fixed interest rate than comparable ANZ Term Deposits. You will need to give ANZ 31 days notice if you wish to withdraw the money prior to maturity. With a minimum investment of $5,000 you can enjoy the certainty of fixed returns over your investment term
CompareCompareAdvance Notice Term Deposit
A higher competitive fixed interest rate than comparable ANZ Term Deposits. You will need to give ANZ 31 days notice if you wish to withdraw the money prior to maturity. With a minimum investment of $5,000 you can enjoy the certainty of fixed returns over your investment term
- interest rate
- 4.20% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $199,999.00
- Can interest be paid to another bank?
- no
- Automatic rollover
- yes
Read reviews and learn more about ANZ term deposits
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Term Deposit
2.60% p.a.
6 months$25,000
Yes up to $250,000
CompareCompareTerm Deposit
- interest rate
- 3.00% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $1,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read reviews and learn more about BankWAW term deposits
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* 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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