Melbourne Term Deposits

Are you living in Melbourne and looking for a place to put your hard-earned money? Term deposits are an excellent way to park your savings as they offer high interest at competitive rates for a fixed term of your choosing. At Mozo, we compare term deposits from banks, mutual banks, and credit unions across Melbourne and Australia helping you to select the best term deposit for you

RG146
Fact Checked
melbourne term deposits

Melbourne term deposit comparisons on Mozo - last updated 31 May 2024

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

    5.00% p.a.
    1 year

    $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

    5.00% 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.

    Compare
    Details
  • Term Deposit

    4.90% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Competitive fixed rates across investment terms ranging from 1 month to 5 years. No set up or establishment fees. $1000 minimum investment.

    Compare
    Details
  • SMSF Term Deposit

    5.25% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Apply digitally in minutes and manage your SMSF Term Deposit. Flexible cash flow management with three interest payment frequencies that suit you: monthly, yearly, or at maturity. Choose from terms of 3 months up to 5 years. No application or monthly account fees but eligibility criteria and terms and conditions apply. Only accessible to SMSFs with two or up to four individual trustees or one corporate trustee.

    Compare
    Details
Search now

^See information about the Mozo Experts Choice Term deposits 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.

Term deposit resources

Reviews, news, tips and guides to help find the best term deposit for you.

How do term deposits work?

Term deposits in Melbourne work much the same across the rest of the country. By applying for a certain term—say, one year—you’ll be given a fixed interest rate that will apply to the deposit until its maturation date. 

Upon reaching maturity, you may choose to either roll over to a new term with the interest gained or instead choose to have your savings deposited into a bank account of your choosing. 

It may be tempting to apply for a 5-year term at a higher interest rate, but keep in mind that if you need to withdraw this cash at any point before the term deposit maturation, you’ll likely have some restrictions such as AMP term deposits requiring a 31-day prior notice for early withdrawal. 


Why might you need a term deposit in Melbourne?

With inflation on the rise, it’s becoming increasingly important for Melburnians to keep their savings stored away in high-interest accounts to offset inflationary pressures. 

Term deposits are a great way to keep money stashed away as they generally offer higher interest rates on average than savings accounts. However, to gain a higher interest rate, you’ll need to keep your cash stored away for longer terms which may not work for savers with limited cash flow. 

In addition, it’s important to note that term deposit providers will usually require a minimum deposit amount ranging from $1,000-$25,000 depending on the account. 


What banks offer good term deposit rates in Melbourne?

As Australia’s biggest city, Melbourne has wide access to a variety of term deposit providers giving a breadth of options. 

But Melburnians no longer need to restrict themselves to local branches anymore as more online term deposits are offered by banks who themselves find greater advantage in becoming increasingly digital.


Should I take a long or short-term deposit?

The length of your term deposit depends on your financial situation as well as the financial environment you find yourself in.

For instance, taking a longer term deposit will generally give you a higher interest rate which you can take advantage of well into a low interest rate environment due to the rate being fixed. 

However, if you were to take a 5-year term deposit and find yourself in a lower interest rate environment by the time of maturation, it would leave you with few options in terms of where to deposit your money. 

In turn, shorter term deposits can be more advantageous in long-term rising interest rate conditions as they allow you to roll over (with interest gained) into an even better interest rate. You can also use shorter periods to keep your money safe and growing for a later investment that they are planned for.


What are the cons of term deposits?

Whilst term deposits are classed as a safe investment, they do have some trade-offs in comparison to riskier investment types. 

  • Low returns: In comparison to other investments such as stocks and bonds, term deposits usually have lower rates of return

  • Lack of liquidity: Term deposits generally have to give 31 days notice if they wish to withdraw before the maturation date.

  • Inflation risk: The interest earned on a term deposit may not keep up with inflation, meaning that you could end up with overall less by the maturation date.

  • Limited diversification: Term deposits are simply a lump sum of money deposited in a particular bank account.


What’s the difference between a term deposit and a savings account?

So how are term deposits any different from a savings account? For one, one big difference that savings accounts have is that they generally have a variable interest rate. 

What this means is that if you open a savings account with an interest rate of 3%, you’re in no way guaranteed to keep this, especially if the economic situation deteriorates. 

On the other hand, term deposits usually have a fixed interest rate. This means that if you applied for a 3% term deposit for 2 years, you’ll keep that interest rate right up until the maturation date. 


How do I apply for a term deposit?

  1. Compare: Look around for term deposits with the best rates. At Mozo we compare term deposits with the best interest rates for comparison.

  2. Decide deposit amount: Depending on the term deposit provider, your minimum deposit amount will vary so make sure you have enough.

  3. Set up your deposit: Make sure you have all the necessary documents nearby to make the process as easy and quick as possible.

  4. Wait: for as long as you set your deposit term and watch your money grow until maturation.  


Picture of Cameron Thomson
Cameron Thomson
RG146
Money writer

Cameron recently earned a BA in Creative Writing and History, and also worked at 2SER Radio during his degree. He mainly writes across savings, banking, and insurance at Mozo. 

Term Deposit Reviews

ANZ Term Deposit
Overall 9/10
Excellent

I am extremely happy with my bank including service and products

Read full review

I am extremely happy with my bank including service and products

Price
9/10
Features
8/10
Customer service
8/10
Convenience
9/10
Trust
7/10
Less
Melissa, Victoria, reviewed 2 months ago
Commonwealth Bank Term Deposit
Overall 10/10
Best for customers service

I love this bank because of how l am treated

Read full review

I love this bank because of how l am treated

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Jonathan, Victoria, reviewed 2 months ago
Greater Bank Term Deposit
Overall 10/10
Reccommend this "Greater Bank" for overall service

I have always found this bank and its customer service to stand out. The staff I have dealt with have been knowladgeable,courteous and friendly and helpful. Very patient with all my many questions.

Read full review

I have always found this bank and its customer service to stand out. The staff I have dealt with have been knowladgeable,courteous and friendly and helpful. Very patient with all my many questions.

Price
9/10
Features
7/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Glynis, New South Wales, reviewed 2 months ago

More term deposit reviews