Why term deposits aren’t just for boomers

By Kylie Moss · · 1 min read
Fact Checked
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If you’re not in the financial comparison game like we are here at Mozo, you may be unaware that it’s a lot harder to get a high interest rate on your savings account without some kind of ‘condition’ attached.

Now, don’t get us wrong. Sometimes those conditions are a great incentive to stick to your savings guns because if you don’t, you won’t earn extra interest, but other times they can be burdensome. 

A Retail Deposits Inquiry Report in 2023 by the Australian Competition and Consumer Commission (ACCC) actually found that 71% of bonus interest savings accounts did not receive bonus interest in any given month, which points to the complexity of how hard it can be to keep track of. 

And this is why a term deposit is worth considering if you want a hassle-free way to grow your savings.  

The idea that term deposits are “just for boomers” is outdated, says Peter Marshall, Mozo’s banking expert. He points out that many term deposits are less restrictive than high interest savings accounts, are easy to set up and manage 100% online and can be fine-tuned to meet your savings goals.

"One of the biggest added benefits of a term deposit is that you are guaranteed a fixed rate of return,” he said.

"The minimum investment depending on the provider is usually between $500-$5000 and there is flexibility to choose the  investment window that suits you best whether that’s 1 month or 5 years.” 

Here are the Mozo money editor’s top term deposit picks for this month, along with some hassle-free savings accounts to consider.

Compare term deposits

  • Term Deposit

    Best rate
    4.45 % p.a.
    for 1 year
    ($1,000 to $2,000,000)
    Next best option
    4.40 % p.a.
    for 5 years
    ($1,000 to $2,000,000)
    Go to site
    • 0.05% added loyalty bonus at renewal
    • Option to have interest paid to another bank
    • Winner of the Mozo Experts Choice Awards 2025^ for Term Deposits.

  • Term Deposit

    Best rate
    4.30 % p.a.
    for 4 months
    ($5,000 to $1,000,000)
    Next best option
    4.15 % p.a.
    for 11 months
    ($5,000 to $1,000,000)
    Go to site
    • Terms range from 2 months to 5 years
    • Interest paid at maturity or regularly (monthly, quarterly, or annually)
    • No monthly account fees

  • Term Deposit

    Best rate
    4.00 % p.a.
    for 5 years
    ($5,000 to $100,000)
    Next best option
    4.00 % p.a.
    for 4 years
    ($5,000 to $100,000)
    Go to site
    • Term deposits available for 3, 6 or 12 months
    • No monthly account fees
    • Minimum deposit of $5,000

Compare savings accounts

  • High Interest Savings Account

    Maximum rate
    5.00 % p.a.
    (for $0 to $250,001)
    Bonus rate for the first 4 months from account opening
    Standard rate
    3.45 % p.a.
    (for $0 to $250,001)
    Go to site
    • Easy set up, online and mobile banking app
    • No fees, no minimum balance, no minimum monthly deposit and no minimum term
    • Kick start your savings with the 4 month introductory variable rate

  • Reward Saver Kick Start Account - Up to 30 years old

    Maximum rate
    4.75 % p.a.
    (for $5,000 to $100,000)
    Minimum deposit of $20 and no withdrawals in the month.
    Standard rate
    0.00 % p.a.
    (for $0 and over)
    Go to site
    • Earn bonus rates by depositing $20 a month and making no withdrawals
    • Mozo Experts Choice Awards winner for Teen High Interest Savings in 2025
    • No monthly account fees

  • Reward Saver Account

    Maximum rate
    4.50 % p.a.
    (for $0 to $1,000,000)
    Intro bonus rate of 4.50% for balances up to $1,000,000 for the first 4 months, reverting to 2.50%. Minimum deposit of $50 and no withdrawals.
    Standard rate
    0.00 % p.a.
    (for $0 and over)
    Go to site
    • Earn bonus rate by depositing $50 a month and making no withdrawals
    • Introductory rate for first 4 months
    • No monthly account fees

* 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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Today's term deposit rates