Finder Score assigns Term Deposit products a score out of 10, comparing interest rates and features, to make comparison easier. We assess over 150 products from more than 90 providers, assessing products across different terms to determine an average score per product.
A business term deposit works in the same way as a standard term deposit - it's just for business customers instead of personal use. A term deposit is a type of bank account that allows you to earn a fixed rate of interest on your money for a set period of time. For example, you might invest $10,000 to earn interest at a rate of 4% p.a. for a period of 12 months. Once 1 year has passed, you will have access to your initial deposit again plus the interest earned.
Here are some of the best business term deposit rates this month.
6 month business term deposits
12 month business term deposits
2 year business term deposits
Whether you opt for a business term deposit or business savings account will depend on how hands-on you want to be, and how much access you want to the account. A term deposit is locked away for the life of the term (you can choose a length between 1 month and 5 years) and there are no ongoing deposit requirements to meet during this time.
A business savings account isn't locked, so you can access the money at short notice whenever you need. However, it's not always a set-and-forget option like a term deposit, as savings accounts often have monthly conditions to meet.
When you put money in a term deposit, you know what you are getting upfront. A fixed interest rate and a set investment period means you know exactly how much interest your term deposit will earn and can therefore include that amount in future financial calculations.
Deposits are protected under the Financial Claims Scheme up to $250,000 per account holder per banking licence (ADI). The cap applies across all deposits you hold with that licence, so a business depositing more than $250,000 is not covered for the excess. Check whether your bank brands share an ADI licence on APRA's register.
Business term deposits offer a simple way to make your money work harder for you, allowing you to safely improve the overall financial standing of your business.
Term deposits offer a higher interest rate than many other types of bank accounts, including many online savings accounts. And because the interest rate is fixed, you’ll be protected against any interest rate drops that may occur.
In order to maximise the savings for your business, it’s important to shop around and find the best business term deposit rates. However, there are several factors that can impact the interest rate on offer on different term deposit accounts, including:
The interest rate that applies to term deposits varies depending on the investment term you choose, with terms ranging from 30 days up to 5 years. Usually you'll find a higher rate on a longer term.
Different interest rates also apply based on the amount you invest. For example, your bank may offer higher interest rates if you deposit an amount greater than $25,000, as opposed to if you park a smaller sum of maybe $5,000 in a term deposit.
To encourage you to remain a loyal customer, when a term deposit matures, some banks may offer you a “loyalty bonus” in the form of a bonus interest rate if you rollover your funds into a new term deposit.
You can choose when you want to get paid your interest, usually as frequently as each month or simply in one lump sum at the end of your term (at maturity). Often by choosing to receive the interest at maturity you'll get a slightly better rate.
Just like with home loans and savings accounts, the specific interest rates on offer vary depending on the bank, building society or credit union you choose.
Taking all these factors into account, it’s clear that the most effective way to find the best business term deposit rates is to compare a range of options. This will help you find the highest interest rate for your desired investment amount and term.
"The Big Four banks don't often offer the best business term deposit rates in the market on a day-to-day basis. However, something that they often do have is special offer term deposit rates. These include higher rates on particular term lengths for a limited time, usually if you apply online, and these rates are often among the best in the market.
So before you settle on a business term deposit, check if the Big Four have any special offers running on a different term length."
Small differences in the interest rate offered may not seem to be too significant, but depending on the size of your investment the difference can really add up.
Let's pretend your business had $50,000 to invest in a term deposit, and you're considering two different options with slightly different interest rates. As the table below shows, by choosing the higher interest rate of Account 2, you can earn an extra $1,000 in interest over 2 years.
| Account 1 | Account 2 | |
|---|---|---|
| Interest rate | 4.00% p.a. | 5.00% p.a. |
| Deposit amount | $50,000 | $50,000 |
| Investment term | 2 years | 2 years |
| Interest earned | $4,000 | $5,000 |
| Balance at maturity | $44,000 | $45,000 |
* This is a fictional, but realistic, example.
The Auswide Bank Business Access Account is a business transaction account that lets you earn interest. This account has no minimum balance requirement and a low monthly fee.
PayNuts offers a range of EFTPOS solutions, with some charging no transaction fees and no terminal rental fees.
Zeller payment terminals accept a large range of payment types including EFTPOS, debit, credit and contactless transactions and can be counter-top based or used as a portable terminal. See the fees and features here.
Your business can get paid in multiple currencies, and spend directly in those currencies to save on currency conversion fees.
The Great Southern Bank Everyday Business Account is a convenient transaction account for your day-to-day business spending with no account-keeping fees.
Manage your business payments seamlessly with Tyro's EFTPOS terminals and business finance solutions.
If business banking fees are having a negative impact on your business’s bottom line, we have everything you need to know to avoid those unnecessary costs.
You can compare a large range of business bank accounts here and open one online in less than 10 minutes. Here's how.
If you're looking for the best business bank account, the first step is to compare your options. Take a look at a range of business bank accounts here to suit your small business and help with cashflow.
I have a Pty Ltd Company can I open a term deposit
Hi Joe,
Yes, absolutely, your Pty Ltd company can open a term deposit to earn fixed interest on its savings, just like an individual would. You’ll need to share your ABN, ACN and director/signatory details. Any of the banks listed in the table on this page provide business term deposits for this purpose. Hope this helps!
Can you get $250000 government guarantee more than once through different banks ?
Hi Peter, yes you can. The guarantee is per person, per ADI.