term-deposit-rates

Compare some of Australia’s best term deposit rates

A term deposit is a safe and secure way to grow your savings balance.

If you’re looking for a guaranteed return on the money you invest, a term deposit offers a secure and reliable solution. But if you want to make your money work as hard as possible and build a larger savings balance, you’ll need to find the financial institution with the best term deposit rates. The higher the interest rate that applies to your funds, the more money you will receive when your deposit matures.

But in order to find the best term deposit rates in Australia, you’ll need to compare a range of account options and shop around for the best deal.

Term Deposit Offer

Citibank Term Deposit

2.75 % p.a.

fixed for 6 months

Term Deposit Offer

Enjoy a competitive interest rate and guaranteed returns on balances from $100,000 with a Citibank Term Deposit Account. Plus, pay no account keeping fees.

  • Minimum investment: $100,000.00
  • Monthly fees: $0.00
  • Interest payment options: annually or at maturity
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Compare some of the best term deposit interest rates in Australia below

Rates last updated December 13th, 2018
$
Name Product 3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. Min Deposit Interest Earned
Citibank Term Deposit
2.60%
-
2.75%
2.45%
-
-
$100,000
ME Term Deposit
2.60%
2.60%
2.80%
2.80%
2.85%
3.00%
$1,000
AMP Term Deposit $100,000+
2.50%
2.40%
2.75%
2.75%
2.75%
2.85%
$100,000
RACQ Bank Term Deposit
2.35%
2.35%
2.60%
2.70%
2.80%
3.00%
$1,000
MyState Bank Online Term Deposit
2.50%
2.35%
2.70%
2.75%
2.80%
-
$5,000
Firstmac Term Deposit
2.55%
-
2.75%
2.65%
2.75%
-
$5,000
AMP Term Deposit $25,000+
2.50%
2.40%
2.75%
2.75%
2.75%
2.85%
$25,000
AMP Term Deposit $5000+
2.30%
2.20%
2.55%
2.55%
2.55%
2.65%
$5,000

Compare up to 4 providers

The importance of high term deposit interest rates

As they are specifically designed to help you save money, term deposits offer a higher rate of fixed interest than you would find on an everyday transaction account. The interest rate is locked in for the entire term, offering the consistency of earning a fixed interest rate and protecting you against any interest rate falls like the one that occurred in May 2016.

But while a fixed interest rate offers security, it also means you will miss out on taking advantage of any interest rate rises that may occur. Even if the official cash rate goes up, the fixed rate on your account will stay the same until the deposit matures.

It’s important to find the best term deposit rates because the higher the interest rate that applies to your account, the more interest you will earn and the more your savings balance will grow. Let’s take a look at a case study to demonstrate just how much difference a slightly higher interest rate can make.

Use our calculator below to see how much you can earn on your term deposit

George’s Term Deposit

george-case-study

George has $10,000 he would like to invest in a term deposit account for a maximum period of two years. He knows this will guarantee him a fixed return on his investment and he likes the security that term deposits offer, so George decides to compare term deposit accounts between his current bank and one of its main competitors to see which one offers the best interest rates.

George’s current bank offers an interest rate of 2.25% p.a. and compounds interest monthly, which means at the end of 24 months George’s $10,000 deposit will have earned $459.84 of interest.

Meanwhile, the competitor bank offers an interest rate of 3% p.a. on term deposits of $10,000 or more, which will allow George to earn $617.57 interest. Simply by choosing the second account with the better interest rate, George can save an extra $157.73.

FeatureTerm Deposit ATerm Deposit B
Term24 months24 months
Minimum deposit amount$5,000$10,000
Interest rate2.25% p.a.3% p.a.
Amount invested$10,000$10,000
Interest earned$459.84$617.57
Total balance at end of term$10,459.84$10,617.57

The pros and cons of investing in a term deposit

The pros

  • You can look forward to a guaranteed return. When you invest your money in a term deposit account, you can be sure that you will get a guaranteed return when the deposit matures. You are also protected against any interest rate drops because your account’s rate is locked in.
  • The interest rates are fairly attractive. Term deposits allow you to earn a much better interest rate on your savings balance than transaction accounts do.
  • There’s plenty of choice. Term deposits are offered by banks, credit unions and building societies across Australia, giving you the ability to compare a wide range of options before choosing an account.

The cons

  • Interest rates could rise, which means you lose out. If interest rates rise while your money is locked away in a term deposit, the interest rate on your account will stay the same.
  • It’s hard to access your funds. If you want to access your funds before the end of the term, you will need to give your bank 31 days’ notice and also pay a fee.

How do I compare term deposits?

Make sure to compare the following factors when comparing your term deposit account options.

The interest rate, which is your return

The interest rate payable on your term deposit balance is a critical factor when deciding which account offers the best deal. A high interest rate means better returns for you, so look for the account that exceeds the rate offered by the rest. However, remember that accounts with higher interest rates may have higher fees or may have special conditions attached, such as the need to exceed minimum opening balance requirements in order to receive the best term deposit rate.

When the interest is compounded

When interest is calculated on your term deposit will have an effect on the amount of interest you can earn. For example, an account that compounds interest monthly will end up paying more interest over time than one that compounds interest annually. For a demonstration of just how much this can affect your final balance when the deposit matures, check out the finder.com.au term deposit calculator.

Where the interest is paid

Next, look at where the interest your account earns will be paid when the deposit matures. For example, will you need to have a linked account with the same bank which the interest will be paid into, or will you be allowed to have the money sent to any other Australian financial institution?

Any minimum balance requirements (you’ll usually need $1,000)

Check to see what the minimum and maximum balance limits are for the term deposit. Are they suitable for the amount of money you are looking to invest? Make sure that you are comparing accounts that match your requirements — for example, term deposit accounts for balances of more than $10,000.

The terms available

Compare how long you are able to invest your money for with each account. Terms typically range from one year term deposits through to five year term deposits, so make sure the time period you choose suits your needs.


Term deposits provide a secure, convenient way to build a sizable savings balance, but it’s important to find the best term deposit rates to ensure that the money in your account is working as hard as possible. Start comparing term deposit interest rates and other account features at finder.com.au today.

Shirley Liu

Shirley Liu is a program manager at finder, formerly the publisher for Banking and Investments. She is passionate about helping people make an informed decision, save money and find the best deal for their needs.

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10 Responses

  1. Default Gravatar
    RudolphOctober 8, 2018

    We have over $100k for a term investement, please recommend top three opportunities, banks etc.

    • finder Customer Care
      JohnOctober 12, 2018Staff

      Hi Rudolph,

      Thank you for leaving a comment.

      Please know that while we do not provide specific product recommendations, we can help guide you through the process of comparing options. You are on the correct page to make a comparison for some of Australia’s best term deposit rates. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have. Hope this helps!

      Cheers,
      Reggie

  2. Default Gravatar
    BruceAugust 30, 2018

    Hi, Could you please advise the best financial institution to invest 50k in a 6 X 6 month term deposit that has monthly compounding interest.

    • finder Customer Care
      JoshuaAugust 30, 2018Staff

      Hi Bruce,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      The best financial institution for you would depend on your unique needs, preference, and situation. To help you make a better decision, it would be a good idea to compare your options by using our table above. You may specify your initial deposit as well as the number of months you intend to keep your money in a term deposit account. Click the “Calculate” button and the table will show you personalised result.

      Once you have decided the right product for you, please click the “Go to site” green button to be redirected to their website where you can initiate your online application or learn more about their products. Please review the criteria, details of the term deposit account and contact the provider directly to discuss your options and eligibility.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  3. Default Gravatar
    DaveAugust 1, 2018

    The best place to invest 300K for 12mths Term deposit?

    • finder Customer Care
      JhezelynAugust 1, 2018Staff

      Hello Dave,

      Thank you for your comment.

      You may want to compare term deposit rates for balances of $300,000 on this page. It looks like for the said amount, Citibank Term Deposit has 3% interest rate for a 12-month term, followed by CUA Term Deposit with 2.85%, then MyState Bank Online Term Deposit 2.70%.

      After comparing and you’ve decided to apply, please click the Go to Site button of your preferred account. I hope this helps.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  4. Default Gravatar
    BruceJuly 12, 2018

    Best place to invest $50k in a 6 month X 6 month term deposit.

    • finder Customer Care
      NikkiJuly 13, 2018Staff

      Hi Bruce!

      Thanks for leaving a question on our page.

      You may check out Firstmac Term Deposit or AMP Bank Term deposit, both offering 2.55%.

      Hope this helps!

      Regards,
      Nikki

    • Default Gravatar
      TobyJuly 25, 2018

      Hi Nikki, does the above relate to Commercial deposits also?

    • finder Customer Care
      NikkiJuly 26, 2018Staff

      Hi Toby,

      Great to hear from you again!

      The information above is savings term deposits. Here is a page for business term deposits for your easy viewing.

      Hope this helps!

      Nikki

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