Shorter term deposits now offer interest rates starting at a ‘5’

term deposit graphs

Commitment-phobes rejoice! Lenders have begun offering higher term deposit interest for shorter terms.

Term deposits, notably known as long-term savings products, might be scary to some. After all, the future is unpredictable and having a large lump sum of money stored away for a couple of years seems a bit of a gamble in today’s world.

But listen, you don’t have to lock your money away quite that long for a beneficial return.

What if we told you that many banks and providers have started offering smaller term lengths with better rates than some savings accounts

That’s right. Shorter commitments for interest rates starting with a ‘5’.

Below we’ve documented several short term deposits that are less than 12 months and have at least a 5.00% interest rate.

Term LengthBankInterest rate (p.a.)
5 monthsAuswide Bank Term Deposit5.05%
6-9 monthsAustralian Military Bank
Investment Plus Term Deposit
5.15%
10 & 11 monthsAustralian Military Bank
Investment Plus Term Deposit
5.25%
1 YearChallenger Term Deposit5.35%
18 MonthsBank of Queensland Term Deposit5.10%

As you can see, there are plenty of good options for short term deposits right now, 

Stay updated with the latest term deposit news by checking out Mozo’s term deposit news and advice page. Alternatively, compare how the term deposits above compete with other banks by using the term deposit comparison table below.

Term deposit comparisons on Mozo - last updated 22 June 2024

Search promoted term deposits below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Term Deposit

    5.25% 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
    Details
  • Mozo Expert Choice Badge
    Term Deposit

    5.00% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)

    Compare
    Details
  • Online Term Deposit

    4.60% p.a.
    6 months

    $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.

    Compare
    Details
  • Mozo Expert Choice Badge
    Term Deposit

    5.05% p.a.
    6 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
    Details
  • 6 Months Term Deposit Special

    5.00% p.a.
    6 months

    $50,000

    Yes up to $250,000

    Boost your savings with a 6 month Illawarra Credit Union term deposit. Minimum deposit of $50,000. Deposits up to $250,000 per account holder are secured by the Government’s Financial Claims Scheme.

    Compare
    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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