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Best Term Deposit Rates in Australia

Sean Callery Editor Money.com.au

Written By Sean Callery

Shaun McGowan Money.com.au founder

Reviewed by Shaun McGowan

Last updated15 July 2024

Compare term deposit rates up to 5.35% p.a. from authorised deposit-taking institutions (ADIs), with terms from one month to five years.

Best Term Deposit Rates in Australia

Sean Callery Editor Money.com.au

Written By Sean Callery

Shaun McGowan Money.com.au founder

Reviewed by Shaun McGowan

Last updated15 July 2024

Compare term deposit rates up to 5.35% p.a. from authorised deposit-taking institutions (ADIs), with terms from one month to five years.

Compare Term Desposit Accounts

See the highest term deposit rates currently available based on the deposit amount, duration and interest payment frequency that suit.

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Rates updated 15 July 2024

Deposit amount

Duration

Interest Frequency

Top term deposit rates in July 2024

Compare the top term deposit rates right now across the most popular term durations:

Term durationTop rateInterest paid

3 months

5.00% p.a. from Heartland Bank, Judo Bank and Move Bank

At maturity

6 months

5.30% p.a. from Heartland Bank

At maturity

9 months

5.25% p.a. from Heartland Bank, Judo Bank and Move Bank

At maturity

12 month

5.35% p.a. from Heartland Bank

At maturity

2 years

5.00% p.a. from Judo Bank

At maturity

3 years

5.00% p.a. from Judo Bank

At maturity

4 years

5.00% p.a. from Judo Bank/Rabobank

At maturity/annually

5 years

5.10% p.a. from Rabobank

Annually

Rates correct as at 15 July 2024 among providers on Money's database.

Highest term deposit rates for interest paid monthly

If you're looking for a regular income stream through a term deposit with monthly interest payments, these are the top rates currently available:

  • 5.20% p.a. on a 12-month term from Great Southern Bank (Platinum Plus 55+); Heartland Bank or Move Bank.
  • 5.15% p.a. on a 9- or 12-month term from Judo Bank; or a 6-month term from G&C Mutual Bank.
  • 5.10% p.a. on a 6-, 9- or 12-month term from Great Southern Bank.
  • 5.05% p.a. on a 6-month term from G&C Mutual Bank or ME Bank.

Rates correct as at 15 July 2024 among providers on Money's database.

How to choose the best term deposit option

Term deposits are a pretty straightforward product, but virtually every bank in Australia offers one. Here are some factors to consider when comparing your many options.

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Interest rate

The interest rate on a term deposit dictates what return you’ll get from your money. A lot of people simply prioritise finding the highest rate available, but there can be situations where a term deposit with a lower rate could be more suitable, based on other factors explained here.

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The term

The interest rate you earn on a term deposit can vary massively based on the term duration – even on accounts from the same provider. Remember, you won’t be able to access the money in a term deposit during the term (without penalties applying) so choosing a suitable term is key.

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Interest payment frequency

For some savers, how often you receive interest payments is particularly important. An example could be if you will rely on the interest payments as income for day-to-day living. Just bear in mind that term deposits paying interest more frequently often have a reduced interest rate.

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Min and max deposit

Check how much the provider actually allows you to deposit, and whether the top interest rate only applies to deposits above a certain amount. Where there is a maximum deposit amount, check if that applies per customer or per account. You may be able to spread funds across multiple term deposit accounts.

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Rules (and penalties) for early withdrawal

Ideally you will choose a term that matches your plans for the money deposited, but it’s worth checking what happens (and what it will cost you) if you need to withdraw the money early for any reason. A reduced interest rate and/or fees usually apply.

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Authorised deposit-taking institutions

Make sure the term deposit you choose is offered by an authorised deposit-taking institution (ADI). Only deposits with these providers (up to $250k per customer per provider) are guaranteed by the Australian Government’s Financial Claim Scheme.

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Reinvestment options

Some term deposits allow you to build on your savings by reinvesting the interest earned. Also consider what happens when the term ends and what options the provider offers. Some banks offer a loyalty bonus if you roll your deposit over into a new term.

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Get advice if you’re unsure

Term deposits are generally considered to be lower risk than other investments, but you may still benefit from getting financial advice before deciding if investing in a term deposit is the right approach for you and which type of account will be best.

Term deposit versus savings account

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Term deposit

  • Fixed interest rate
  • Options of fixed interest terms between between 1 month - 5 years
  • Penalties apply if you withdraw your money before the end of the term

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High interest savings account

  • Variable interest rate
  • No set time frame on the account and you can top up your savings
  • You can withdraw your money at any time

How to open a term deposit

You can usually open a new term deposit account online through the provider’s website. This should only take a few minutes, assuming you’re eligible and have your ID handy.

To open a term deposit, you’ll generally need to:

  • Be an Australian resident with an Australian postal address.
  • Be 18 years of age or older.
  • Provide information from your identity documents to prove your identity (Australian Passport, driver's licence, Medicare or Centrelink Card).
  • Provide a tax file number if you don’t want the bank to withhold tax on interest paid.

Term deposit FAQ

A term deposit is a savings product offered by most banks in Australia that pays a fixed rate of interest on money deposited for a set period of time.

During the term, savers cannot withdraw money from their term deposit without penalties applying (fees or interest deductions).

There are usually a few different options for when interest is paid on a term deposit:

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  • Monthly
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  • Quarterly (every three months)
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  • Semi-annually (every six months)
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  • Annually
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  • At maturity (at the end of the term)

For shorter terms (1-12 months) some providers only pay interest at the end of the term. Choosing to receive interest payments more frequently usually means you’ll be paid a lower rate of interest.

Most term deposit providers require a month’s notice is a customer needs to withdraw funds early. There may be exceptions for customers who need to access money because they are experiencing financial difficulty.

If you withdraw funds early, you may be charged a fee or, more likely, be paid a reduced rate of interest depending on how long is left until the term deposit matures.

If you are saving for a particular goal, such as a first home buyer saving for a deposit, it's particularly important to consider the term length and whether it suits your plans.

Here is an example of the interest rate deduction applied by term deposit provider, Rabobank.

% of term that elapsed when funds withdrawnInterest rate deduction

Less than 20%

80%

20-39%

60%

40-59%

40%

60-79%

20%

80-99%

10%

When your term deposit ends (matures), you generally have a few options depending on the provider:

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  • You can reinvest the money for a new term with the same provider (either the same term as the previous one or a different one).
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  • You can open a term deposit with another provider and transfer the funds there.
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  • You can withdraw the money and use it for a different purpose entirely (e.g. move it into a high interest savings account).
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  • If you don’t inform your bank what you want to happen at the end of your term deposit, you may be rolled into a new term deposit by default. This may not be the term deposit with the highest rate on offer from that provider.

Money saved in a term deposit with an authorised deposit-taking institution (ADI) is guaranteed by the Australian Government’s Financial Claim Scheme, up to a value of $250,000 per person per bank. That means no matter what happens to a bank, each customer with a term deposit will be protected up to $250,000.

If you have more than $250,000 to invest, you could spread your savings across multiple term deposit providers covered by the scheme to ensure you are protected. If you are investing a large amount, consider discussing your options with a financial advisor first.

You should also make sure that the product you’re investing in is in fact a term deposit. The Australian Securities and Investments Commission (ASIC) warns that there are cases where scammers advertise fake investments as being ‘like a term deposit’ with ‘guaranteed high returns’.

There may also be legitimate investment products (e.g. managed funds) that seem similar to what a term deposit offers, but these are much higher risk, ASIC warns.

The following providers are authorised deposit-taking institutions who can offer term deposits that will be covered by the government’s Financial Claims Scheme.

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  • Alex Bank Pty Limited
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  • AMP Bank Ltd
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  • Arab Bank Australia Limited
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  • Australia and New Zealand Banking Group Limited
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  • Australian Military Bank Ltd
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  • RSL Money
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  • Australian Mutual Bank Limited (trading as - Endeavour Mutual Bank and Sydney Mutual Bank)
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  • Australian Settlements Limited (provides industry services)
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  • Australian Unity Bank Limited
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  • Auswide Bank Ltd
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  • Queensland Professional Credit Union Ltd
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  • Avenue Bank Limited
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  • B&E Ltd (trading as Bank of us)
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  • Bank Australia Limited
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  • Bank of China (Australia) Limited
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  • Bank of Queensland Limited
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  • BOQ Specialist (BOQS)
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  • ME Bank
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  • Bank of Sydney Ltd
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  • Bendigo and Adelaide Bank Limited
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  • Adelaide Bank
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  • Alliance Bank
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  • AWA Alliance Bank
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  • BDCU Alliance Bank
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  • Bendigo Bank
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  • Circle Alliance Bank
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  • Community Sector Banking
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  • Delphi Bank
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  • Nova Alliance Bank
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  • Rural Bank
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  • Service One Alliance Bank
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  • Up Bank
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  • Beyond Bank Australia
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  • Nexus Mutual
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  • BNK Banking Corporation Limited (previously
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  • Goldfields Money Limited)
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  • Goldfields Money
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  • Cairns Penny Savings & Loans Limited (trading as Cairns Bank)
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  • Central Murray Credit Union Limited
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  • Central West Credit Union Limited
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  • Challenger Bank Limited (previously - MyLifeMyFinance Limited)
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  • Coastline Credit Union Limited
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  • Commonwealth Bank of Australia Bankwest
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  • Community First Credit Union Limited
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  • Community First Bank
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  • Easy Street Financial Services
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  • Credit Union Australia Ltd (trading as Great Southern Bank)
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  • Credit Union SA Ltd
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  • Cuscal Limited (provides industry services)
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  • Defence Bank Limited
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  • Dnister Ukrainian Credit Co-operative Limited
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  • Family First Credit Union Limited
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  • Family First Bank
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  • Fire Service Credit Union Limited
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  • First Choice Credit Union Ltd
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  • First Option Bank Ltd
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  • Ford Co-operative Credit Society Limited (trading as Geelong Bank)
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  • G&C Mutual Bank Limited
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  • Gateway Bank Ltd
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  • Goulburn Murray Credit Union Co-operative Limited
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  • Heritage and People’s Choice Limited
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  • Heritage Bank
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  • People’s Choice Credit Union
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  • Horizon Credit Union Ltd (trading as Horizon Bank)
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  • HSBC Bank Australia Limited
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  • Hume Bank Limited
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  • IMB Ltd (trading as IMB Bank)
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  • The Shire
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  • Illawarra Credit Union Limited
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  • in1bank Ltd
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  • Indue Ltd
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  • ING Bank (Australia) Limited (trading as ING)
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  • Judo Bank Pty Ltd
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  • Laboratories Credit Union Limited
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  • Lithuanian Co-operative Credit Society "Talka" - Limited
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  • Lutheran Laypeople's League of Australia
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  • MacArthur Credit Union Ltd (trading as The MAC)
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  • Macquarie Bank Limited
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  • Macquarie Credit Union Limited
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  • Maitland Mutual Limited (trading as The Mutual Bank)
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  • Members Banking Group Limited (trading as RACQ Bank)
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  • MyState Bank Limited
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  • National Australia Bank Limited
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  • Ubank
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  • Newcastle Greater Mutual Group Ltd
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  • Newcastle Permanent
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  • Greater Bank
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  • Northern Inland Credit Union Limited
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  • Orange Credit Union Limited
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  • Police Bank Ltd (trading as Border Bank)
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  • Police Credit Union Limited
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  • Police Financial Services Limited (trading as BankVic)
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  • Police & Nurses Limited (trading as P&N Bank, and BCU Bank)
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  • Pulse Credit Union Limited
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  • QPCU Limited (trading as QBANK)
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  • Qudos Mutual Ltd (trading as Qudos Bank)
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  • Queensland Country Bank Limited
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  • Rabobank Australia Limited
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  • Railways Credit Union Limited (trading as MOVE)
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  • Regional Australia Bank Ltd
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  • South West Slopes Credit Union Ltd
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  • Southern Cross Credit Union Ltd
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  • Summerland Financial Services Limited (trading as - Summerland Credit Union)
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  • Suncorp-Metway Limited
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  • Teachers Mutual Bank Limited (trading as - Firefighters Mutual Bank, Health Professionals Bank, Hiver Bank, Teachers Mutual Bank and UniBank)
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  • The Broken Hill Community Credit Union Ltd
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  • The Capricornian Ltd
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  • Traditional Credit Union Limited
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  • Transport Mutual Credit Union Limited
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  • Tyro Payments Limited
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  • Unity Bank Limited (trading as Reliance Bank, Bankstown City Unity Bank and Unity Bank)
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  • Victoria Teachers Limited (trading as Bank First)
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  • Warwick Credit Union Ltd
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  • Dalby Credit Union
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  • Gympie Credit Union
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  • WAW Credit Union Co-Operative Limited
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  • BankWAW
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  • Westpac Banking Corporation
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  • Bank of Melbourne
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  • BankSA
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  • St George Bank
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  • Woolworths Team Bank Limited
Sean Callery Editor Money.com.au

Written by

Sean Callery

Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.

Shaun McGowan Money.com.au founder

Reviewed by

Shaun McGowan

Shaun McGowan is the founder of Money.com.au. He's determined to help people and businesses pay as little as possible for financial products, through education and building world class technology. Previously Shaun co-founded CarLoans.com.au and Lend.

Important information

Rates and other product information are updated daily. Our term deposit interest rate comparison is based on products analysed by Money from banks covered by the Government’s Financial Claims Scheme. By default the table is sorted by highest interest rate, then provider name alphabetically. Check with the provider for full current account details, including rates, fees, eligibility and terms and conditions – and seek financial advice if necessary – to ensure the product is right for you. While this is an extensive list of the highest term deposit rates based on monthly interest payment available in Australia, we don’t guarantee that all products in the market are shown.

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Money Pty Ltd (trading as Money) Australian Credit Licence 528698 provides information about credit products and is authorised to do so as the holder of Australian Credit Licence 528698. Money does not compare every Lender all products or issuers available in Australia. We are not a broker or credit provider and when we provide information via this website, we are not providing you with a recommendation or suggestion about a particular credit product.

This material has been prepared by Money Pty Limited (ABN 40 664 954 536) (Money, ‘us’ or ‘we’). Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C). The material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Money, any of their related body corporates or any other person. To the maximum extent possible, 62C, Money, their related body corporates or any other person do not accept any liability for any statement in this material.

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