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Best Term Deposit Rates

Term deposits are a safe, easy way to earn a guaranteed return on your cash. Right now the best term deposit rates in Australia are as high as 5%.

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By

Alison Banney

Reviewed by

Serina Bird

Updated

Fact checked
1 - 8 of 179
Updated regularly
Name 3 Mths p.a. 4 Mths p.a. 5 Mths p.a. 6 Mths p.a. 7 Mths p.a. 12 Mths p.a. 24 Mths p.a. More info
MyState Bank Online Term Deposit
$5,000 min. deposit$50,000,000 max. deposit
3 Mths p.a.
2.50%
4 Mths p.a.
4.20%
5 Mths p.a.
4.40%
6 Mths p.a.
4.60%
7 Mths p.a.
5.00%
12 Mths p.a.
4.80%
24 Mths p.a.
3.95%
Go to siteMore Info
MyState Bank Online Term Deposit
$5,000 min. deposit$50,000,000 max. deposit
Go to site
Product NameMyState Bank Online Term Deposit
3 month interest rate2.5%
6 month interest rate4.6%
9 month interest rate4.85%
12 month interest rate4.8%
24 month interest rate3.95%
The rates displayed above are interest rates paid at maturity only. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide.
ING Term Deposit
$10,000 min. deposit
3 Mths p.a.
4.75%
4 Mths p.a.
4.75%
5 Mths p.a.
-
6 Mths p.a.
4.85%
7 Mths p.a.
4.65%
12 Mths p.a.
4.90%
24 Mths p.a.
4.50%
Go to siteMore Info
ING Term Deposit
$10,000 min. deposit
Go to site
Product NameING Term Deposit
3 month interest rate4.75%
6 month interest rate4.85%
9 month interest rate4.65%
12 month interest rate4.9%
24 month interest rate4.5%
The rates displayed above are interest rates paid at maturity only. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide.
Judo Bank Term Deposit
Finder Award$1,000 min. deposit
3 Mths p.a.
4.85%
4 Mths p.a.
-
5 Mths p.a.
-
6 Mths p.a.
5.10%
7 Mths p.a.
-
12 Mths p.a.
5.10%
24 Mths p.a.
4.85%
Go to siteMore Info
Judo Bank Term Deposit
Finder Award
$1,000 min. deposit
Go to site
Product NameJudo Bank Term Deposit
3 month interest rate4.85%
6 month interest rate5.1%
9 month interest rate5.1%
12 month interest rate5.1%
24 month interest rate4.85%
36 month interest rate4.85%
48 month interest rate4.85%
60 month interest rate4.85%
The rates displayed above are interest rates paid at maturity only. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide.
Newcastle Permanent Term Deposit
$1,000 min. deposit
3 Mths p.a.
3.50%
4 Mths p.a.
3.50%
5 Mths p.a.
3.50%
6 Mths p.a.
4.60%
7 Mths p.a.
3.80%
12 Mths p.a.
4.50%
24 Mths p.a.
4.00%
Go to siteMore Info
Newcastle Permanent Term Deposit
$1,000 min. deposit
Go to site
Product NameNewcastle Permanent Term Deposit
3 month interest rate3.5%
6 month interest rate4.6%
9 month interest rate4%
12 month interest rate4.5%
24 month interest rate4%
36 month interest rate4%
48 month interest rate4%
60 month interest rate4%
The rates displayed above are interest rates paid at maturity only. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide.
BCU Term Deposit
$1,000 min. deposit$999,999 max. deposit
3 Mths p.a.
4.40%
4 Mths p.a.
3.70%
5 Mths p.a.
3.40%
6 Mths p.a.
4.70%
7 Mths p.a.
4.00%
12 Mths p.a.
4.50%
24 Mths p.a.
4.40%
Go to siteMore Info
BCU Term Deposit
$1,000 min. deposit$999,999 max. deposit
Go to site
Product NameBCU Term Deposit
3 month interest rate4.4%
6 month interest rate4.7%
9 month interest rate4.4%
12 month interest rate4.5%
24 month interest rate4.4%
36 month interest rate4%
The rates displayed above are interest rates paid at maturity only. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide.
Community First Bank Term Deposit
$5,000 min. deposit$99,999 max. deposit
3 Mths p.a.
4.20%
4 Mths p.a.
4.20%
5 Mths p.a.
4.20%
6 Mths p.a.
4.45%
7 Mths p.a.
4.45%
12 Mths p.a.
4.70%
24 Mths p.a.
4.75%
Go to siteMore Info
Community First Bank Term Deposit
$5,000 min. deposit$99,999 max. deposit
Go to site
Product NameCommunity First Bank Term Deposit
3 month interest rate4.2%
6 month interest rate4.45%
9 month interest rate4.45%
12 month interest rate4.7%
24 month interest rate4.75%
36 month interest rate4.75%
The rates displayed above are interest rates paid at maturity only. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide.
Bankwest Term Deposit
$1,000 min. deposit$10,000,000 max. deposit
3 Mths p.a.
3.75%
4 Mths p.a.
3.00%
5 Mths p.a.
3.00%
6 Mths p.a.
4.25%
7 Mths p.a.
4.00%
12 Mths p.a.
4.75%
24 Mths p.a.
4.40%
Go to siteMore Info
Bankwest Term Deposit
$1,000 min. deposit$10,000,000 max. deposit
Go to site
Product NameBankwest Term Deposit
3 month interest rate3.75%
6 month interest rate4.25%
9 month interest rate4.8%
12 month interest rate4.75%
24 month interest rate4.4%
36 month interest rate4%
48 month interest rate4%
60 month interest rate4%
The rates displayed above are interest rates paid at maturity only. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide.
Community First Bank Term Deposit - $100,000+
$100,000 min. deposit$1,000,000 max. deposit
3 Mths p.a.
4.25%
4 Mths p.a.
4.25%
5 Mths p.a.
4.25%
6 Mths p.a.
4.50%
7 Mths p.a.
4.50%
12 Mths p.a.
4.75%
24 Mths p.a.
4.80%
Go to siteMore Info
Community First Bank Term Deposit - $100,000+
$100,000 min. deposit$1,000,000 max. deposit
Go to site
Product NameCommunity First Bank Term Deposit - $100,000+
3 month interest rate4.25%
6 month interest rate4.5%
9 month interest rate4.5%
12 month interest rate4.75%
24 month interest rate4.8%
36 month interest rate4.8%
The rates displayed above are interest rates paid at maturity only. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide.
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Is 2024 a good time to lock in a term deposit rate?

After a cycle of very rapid interest rate rises that began in 2022, Australians can now get term deposit rates of around 5% or just below that. These are the highest that rates have been in many years.

And at the moment it looks like rates are going to stay where they are. The main reason rates have risen is to combat inflation. But as inflation slows down it looks like rates could start to fall later in the year (or early next year).

Of course, it's impossible to "time the market" when it comes to things like interest rates.

Richard Whitten
Market update by Richard Whitten – Finder money editor

Which Australian banks have the best term deposit rates?

Term deposit rates are changing a lot at the moment - and for the better. Here are some of the highest rates for April 2024:

3 month term deposits

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Gateway Bank Term Deposit - 4.9%

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Great Southern Bank Term Deposit Account - 4.9%

6 month term deposits

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Challenger Term Deposit - 5.2%

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Gateway Bank Term Deposit - 5.15%

12 month term deposits

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Challenger Term Deposit - 5.15%

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Judo Bank Term Deposit - 5.1%

24 month term deposits

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State Bank of India Term Deposit- 5.1%

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Judo Bank Term Deposit - 4.85%

How we determine our best term deposit rates

At Finder, we maintain a database of term deposit interest rates that covers most of the market - from the Big 4 Banks to small community lenders.

At the start of each month we examine the rates in our database and determine the highest rates. The interest rate is the single most important factor when comparing term deposits: the higher the better.

Promoted
MyState Bank Online Term Deposit
MyState Bank Online Term Deposit
Promoted
5.00 % p.a.
max rate
7
month term
  • Maximum rate: 5% p.a.
  • Minimum deposit: $5,000
  • Account fees: $0

MyState Bank Online Term Deposit

Go to site More info
Go to site More info

What is a term deposit?

A term deposit is a type of savings account that offers a fixed interest rate. But unlike a savings account, you lock the deposit away until the term deposit matures (that is, the end of the term).

It's a low-risk way of earning a guaranteed, fixed return on your cash. You can choose a term deposit length from just 1 month long up to 5 years, and you'll earn a set interest rate for the duration of your term length.

How do term deposits work?

Term deposits are a big source of funding for banks. A bank takes your money, pays you a fixed rate of interest and then uses this money to fund loans or other activities.

Banks set their term deposit rates based on several factors, including:

  • The official cash rate target. The Reserve Bank determines banks' short term borrowing costs. And this affects rates on term deposits.
  • Market competition. Banks also consider what their competitors are doing when setting term deposit rates. Some banks want to encourage customers to save via term deposits, and so they make their rates more competitive.
  • Maturity terms. Banks offer lower rates on shorter terms and higher rates on longer ones.

How to get the best term deposit interest rate

Here are a few ways to make sure you're getting a good rate:

  • Consider smaller lenders, credit unions and digital banks. Don't just look at the Big Four.
  • Compare term lengths: 6-month rates are often better than 3-month rates, and 24-month rates are often better again.
  • Look for providers that offer extra interest as a loyalty bonus.
  • Negotiate your rate with the bank to see if you can get a better deal.

How to compare term deposits

  • Choose the right term length. You can put away your money for 3 months or several years. It depends on the rate you can get and when you need the money. If you're saving for a short-term goal like a holiday you may only need a 6-month term.
  • Look for the highest interest rate. The higher the rate, the more you earn.
  • Check the conditions for breaking the term deposit. In an emergency you may need to access your money fast. Some term deposits charge a fee for this, while others require a month's notice first.
  • Look at how the term deposit pays interest. Some term deposits pay interest on a monthly basis, annually or at maturity (when the term ends). Getting interest paid at maturity often gets you a bigger interest payment.
  • Watch out for automatic rollover. Some term deposits automatically roll over at the end of the term, meaning your money will be locked up for a new term. This is a handy feature if you want to keep building up interest with zero effort. But if you need to access the money make sure you notify the bank and don't let it roll over.

Pros and cons of term deposits

Term deposits are a very low-risk way to earn some interest on your savings. They're less attractive while rates are low. The biggest risk is that you can't easily access money saved in a term deposit in an emergency.

If you think you'll need to access cash in a hurry consider a savings account.

Pros of term deposits

  • Term deposits offer a fixed rate, so you can guarantee your exact return.
  • Term deposits have no set up fees, account keeping fees or ongoing conditions to meet.
  • Term deposits are backed by the Australian government bank guarantee scheme.
  • You can choose between a large range of term deposit lengths, from 1 month to 5 years.

Cons of term deposits

  • Fixed rate means you won't benefit from rising interest rates until your term matures.
  • Term deposits offer simple interest, not compound interest.
  • Many term deposits offer rates that are equal to or even lower than savings accounts.
  • Withdrawing money early incurs penalty charge and/or forfeits interest.

Term deposits versus savings accounts

Here are some of the main differences between term deposits and savings accounts.

  • You can access money in your savings account at any time, but you can't access the money in your term deposit until it matures.
  • Term deposits offer fixed interest rates, while savings accounts offer variable rates (they can change at any time).
  • Compared to short term deposits, savings account rates are often higher. However compared to longer term deposits (3-5 years) term deposit rates are higher.
  • Savings accounts often have monthly deposit conditions to meet, while term deposits have no ongoing conditions to meet.
  • Term deposits pay simple interest, while savings accounts offer compound interest. Use a term deposit calculator to see how much you'll earn.

Why you can trust Finder's banking experts

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Unlike other comparison sites, we're not owned by a bank or lender. That means our opinions are our own and you can compare nearly every bank account in Australia on Finder.
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We're here to help

Since 2015, we’ve helped over 1.3 million Australians find an account. We'll never ask for your personal information. We're here to help you make a decision.
Richard Whitten

I was helping a family member compare savings options recently. They started looking at high interest savings accounts, then term deposits from the Big Four banks and some smaller banks with slightly higher rates. In the end they chose a term deposit from a big bank. The rate was slightly lower than the best in market, but they liked the convenience of the bank's app (they were already a customer). They had considered a high interest savings account too, but the bonus rate had a few conditions they weren't confident they'd meet each month.
— Richard Whitten, money editor

FAQ: More questions about term deposits

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24 Responses

    Default Gravatar
    RhondaSeptember 13, 2017

    I have $70,000.00 to invest for 12 months…what is the highest interest rate I can get please…in a term deposit…or is there a risk free other deposit…thank you.

    Reply
      AvatarFinder
      DeeSeptember 13, 2017Finder

      Hi Rhonda,

      Thanks for your question.

      The highest interest rate for 12 months is 2.55% p.a. You can take advantage of our calculator on top of the comparison table to see which option can give you high “Interest Earned”.

      Alternatively, you can compare different high-interest savings account using our comparison table. Simply enter your initial and monthly deposit as well as your preferred term. When you are ready, you may then click on the “Go to site” button and you will be redirected to the bank’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you read through the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

      Cheers,
      Anndy

      Reply
    Default Gravatar
    bevJuly 31, 2017

    I have $23000 that I want to reinvest as a term deposit, what is the best interest rate I can get?

    Reply
      Default Gravatar
      LiezlJuly 31, 2017

      Hi Bev,

      Thanks for your question.

      The interest rate you’ll get will actually depend on the number of months you intend to invest your money for. You can make use the table calculator above to compare the potential interest you’ll earn for a given number of months. Simply enter the details to calculate then, click the sorter button to arrange the interest earned amounts.

      Cheers,
      Liezl

      Reply
    Default Gravatar
    CarolMay 23, 2017

    In the current interest rate environment is it better to lock in a good rate for 2 or 3 years (3.2 a 3.4%) or take a slightly lower rate (3%) for 12 months with the expectation that rates will rise before the longer term is matured.

    Reply
      AvatarFinder
      HaroldMay 24, 2017Finder

      Hi Carol,

      Thank you for your inquiry.

      Unfortunately, we cannot provide you our personal opinion regarding this matter. However, please feel free to compare the offers and review which provider will give you the highest interest rate based on the term duration here on this page.

      I hope this information has helped.

      Cheers,
      Harold

      Reply
    Default Gravatar
    badickoMay 16, 2017

    Can deposits be made in a Private Company name?

    Reply
      Default Gravatar
      LiezlMay 17, 2017

      Hi Badicko,

      Thanks for your question.

      Yes, you can place term deposits under a company’s name. Please feel free to compare business term deposits on our website.

      For company application, you have to provide your Australian Company Number (ACN), and all non-Bankwest customers who will be account signatories have to provide photo IDs by visiting a Bankwest store or at Australia Post outlet. You may or may not provide your ABN and TFN.

      I hope this has helped.

      Cheers,
      Liezl

      Reply
    Default Gravatar
    JegaMay 5, 2017

    Hi ,

    How safe is Me bank for deposits? Does the commonwealth Government guarantees all the deposit.

    Reply
      Default Gravatar
      LiezlMay 5, 2017

      Hi Jega,

      Thanks for getting in touch.

      Yes, ME is covered by the Government Guarantee for up to $250 000 per person, per institution. For further enquiries regarding the ME Term Deposit account or the security of your funds, it would be best that you contact ME directly.

      Cheers,
      Liezl

      Reply
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