Which low minimum balance term deposits have the highest rates?

By Cameron Thomson · · 2 min read
Fact Checked

Term deposits are a great way of locking up some cash and getting a guaranteed interest rate. However, high interest rates accounts can often have high deposit requirements.  

For instance, the current rate leader for 1 year and 2 year terms on the Mozo database is Heartland bank at 4.90% p.a. and 4.50% p.a, but it comes at a minimum deposit of $25,000!So are there any low minimum balance term deposits, and can you get a good rate from them?    

Term deposits with low minimums of $1,000 or less 

If you’re looking at a middle ground between $0 deposit and $5,000 deposits, then $500 to $1000 is a good range to look at.

These are essentially on the lower end of minimum balances.

We’ve dug through the data and found the following low deposit accounts as examples that don’t skimp on high interest rates:  

6 Months

  • Bank of Sydney: 4.85% p.a.($1,000 min)
  • Credit Union SA: 4.85% p.a.($1,000 min) 
  • Gateway Bank: 4.85% p.a.($1,000 min)  

9 Months:

  • Credit Union SA: 4.75% p.a.($1,000 min) 
  • Gateway Bank: 4.75% p.a.($1,000 min)  
  • G&C Mutual Bank: 4.65% p.a.($1000 min)  

1 Year:

  • G&C Mutual Bank: 4.65% p.a. ($1,000 min)  
  • Gateway Bank: 4.65% p.a. ($1,000 min)  
  • Unity Bank: 4.65% p.a. ($1,000 min)  

2 Years:

  • Central West Credit Union: 4.40% ($500 min)  
  • Judo Bank: 4.30% ($1000 min)  
  • Bank Australia: 4.25% ($500 min)  

$0 deposit options

If you’ve got a small amount you’re looking to lock your cash up for, there are options which require no minimum deposit which can offer a lot of flexibility to commit as little as you feel comfortable with.

6 Months: 

  • Abel Bank: 4.70% p.a.
  • Bendigo Bank: 4.10% p.a.
  • Suncorp: 4.45% p.a.    

9 Month

  • Abel Bank: 4.40% p.a.
  • Bendigo Bank: 4.20% p.a.
  • Suncorp: 3.95% p.a.

1 Year: 

  • Abel Bank: 4.20% p.a.
  • Bendigo Bank: 4.00% p.a.
  • Suncorp: 3.70%  p.a.    

2 Year: 

  • Abel Bank: 3.75%  p.a.
  • Bendigo Bank: 3.30% p.a.
  • Suncorp: 3.60% p.a.

Getting started with term deposits

There are plenty of options to choose from. In fact, as of writing, Mozo currently tracks 93 term deposits on our database. This can make deciding between options difficult.

At Mozo, you can compare term deposit options on our hub pages or check out some of the providers below...