Term deposit rates January 2022

Term deposits are a safe, easy way to earn a guaranteed return on your money. Right now, the best term deposit rates are above 1%.

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If you're looking for somewhere risk-free to boost your savings balance, a term deposit offers a guaranteed return. Just set, forget and let it do the hard, interest-earning work.

Compare term deposit rates

Name Product 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.
Citibank Term Deposit $10,000
0.40%
-
-
0.40%
-
0.40%
-
Suited to customers with deposits between $10,000 and $249,999.
This term deposit is for new Citibank customers only
MyState Bank Online Term Deposit
0.30%
0.30%
0.25%
0.70%
0.35%
0.80%
1.20%
Single or joint account-holders can apply online with MyState's online application process.
Pay no account setup or ongoing fees and choose a term length between 3 months and 2 years, with interest paid at maturity.
Rabobank Term Deposit
0.45%
-
-
0.75%
-
0.75%
0.50%
Suited to customers with deposits between $1,000 and $2,000,000.
With a Rabobank Term Deposit you will receive a competitive rate on your deposits and the choice of a 1, 3, 6, 9 or 12 month term.
Judo Bank Term Deposit
0.88%
-
-
0.97%
-
1.12%
1.20%
Earn a 0.10% p.a. loyalty bonus when you roll over your term.
The Judo Bank Term Deposit term lengths range from three months to five years. Minimum opening deposit is $1,000. No account-keeping or set-up fees to pay.
ME Term Deposit
0.35%
0.35%
0.40%
0.50%
0.50%
0.60%
1.10%
You can link the ME Term Deposit with the transaction account of your choice, at any other Australian financial institution.
Choose whether to have interest paid annually, monthly or at maturity.
Bank of Queensland Term Deposit ($5,000 - $249,999)
0.20%
0.15%
0.15%
0.35%
0.20%
0.50%
1.00%
ING Term Deposit
0.05%
0.05%
-
0.07%
0.10%
0.22%
0.25%
Pay no fees for your term deposit, and choose a term length from three months to two years.
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How to get the best term deposit rate

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

  • Consider smaller lenders, credit unions and digital banks
  • Compare term lengths: 6-month rates are often better than 3-month rates
  • 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

6-month term deposit rates

In comparison, take a look at the 6-month term deposit rates offered by the Big Four: ANZ, CBA, NAB and Westpac.

ProductInterest rateMin. deposit
ANZ term deposit 0.1% p.a. for 6 months$5,000
CBA term deposit0.1% p.a. for 6 months$5,000
NAB term deposit0.15% p.a. for 6 months$5,000
Westpac term deposit0.15% p.a. for 6 months$5,000

Is a term deposit a good idea at the moment?

It's true that interest rates on term deposits and savings accounts are quite low at the moment. This is because the official RBA cash rate is at an all-time low. Home loans rates are at historic lows too.

However, that doesn't mean that term deposits are a bad idea right now. In fact, with increased volatility in the share market and a recession officially declared for Australia, a term deposit is one of the safest places for your cash.

What is a term deposit and why should you invest in one?

A term deposit is a type of savings account opened for a certain period of time. During this period your money is locked, so you won't be able to access it (penalties apply if you do). In exchange, your money earns interest according to the interest rate offered by the financial institution when opening the account. This interest rate is fixed and won't change throughout the life of the term. After the period has ended, you can choose to reinvest a portion or all of the funds at the interest rate stated by your bank, or you can withdraw the funds.

Term deposits are widely considered to be a safe, low-risk investment as, unlike savings accounts, they offer a guaranteed return through a fixed interest rate. Because your money is locked away, banks often offer a higher interest rate on some term deposits than they do on regular savings accounts.

If you have a chunk of money you know you won't need for a while, a term deposit could be a good option. It removes the temptation to spend the money as you'll need to pay a fee if you wish to withdraw before the term is finished.

Term deposit interest calculator

Use our term deposit calculator to find out how much interest you could earn over 12 months.

  1. Deposit amount: Enter your deposit amount.
  2. Interest: Enter the interest rate offered on your 12-month term deposit (for example, 3.00%).
  3. Saving term: Enter the number of months (12) your investment will be held.
*Whilst every effort has been made to ensure the accuracy of this calculator, the results should only be used as an indication. They are neither a recommendation nor an eligibility test for any product and should not be construed as financial advice, investment advice or any other sort of advice.

Term deposit versus savings account

The main difference between a savings account and a term deposit is the ability to access your money. The money in a savings account can be accessed whenever you need it and there are no costs for withdrawing or depositing money. Term deposits are locked and will charge you if you need to withdraw your money early. So if you want easy access to your money, then a term deposit might not be right for you.

Another key difference is the interest rate. Savings accounts have variable interest rates meaning they can change, while term deposits have fixed interest rates so the rate will not change until the term matures. Because they can change at any time, savings accounts often have higher rates than term deposits. So if you're looking for a higher interest rate on your money, a savings account might be a better option for you.

See how savings account rates compare to term deposit rates

Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Intro Period Government Guarantee
AMP Saver Account - 1.35% from 1 Feb 2022
1.35%
0.1%
Ongoing
Westpac Life (18-29 year olds only)
2.5%
0.15%
Ongoing
Virgin Money Boost Saver (25+ year olds)
1.2%
0.1%
Ongoing
Virgin Money Boost Saver (18-24 year olds)
1.2%
0.1%
Ongoing
Virgin Money Grow Saver
0.65%
0.1%
Ongoing
Westpac Life
0.25%
0.15%
Ongoing
MyState Bank Bonus Saver Account
1.1%
0.05%
Ongoing
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Term deposit vs high-interest savings: What's best for you?

How to compare term deposits to find the best one for you

Like most financial products, there is no best term deposit account. The account that best suits your needs and circumstances is the one you should choose. But what is best for you might not be best for someone else. You should look for:

  • A competitive interest rate
  • A term length that suits you
  • A minimum deposit amount you're comfortable with

Ask these questions when comparing term deposits:

  • How often interest is calculated? Is it compounded?
  • Do any ongoing fees apply?
  • What happens if you break the term of your deposit?
  • Can you withdraw a portion of the deposit without incurring a penalty?
  • How often will you receive statements?
  • Can you easily check on the balance in your account (such as with a mobile banking app)?
  • What happens to the deposit when it matures? For example, will it automatically roll over into another term deposit?

Do I have to pay tax on a term deposit?

Yes. If you've invested money in a term deposit, you will need to pay tax on the interest income you earn. The amount of tax you'll need to pay on your term deposit interest will depend on your overall taxable income. It will also depend on when you receive your interest payments.

More questions about term deposits

Read more on this topic

  • Gateway Bank term deposit

    Earn a fixed interest rate on a wide choice of terms with a Gateway Bank personal term deposit.

  • Citibank Term Deposit $10K

    Earn a competitive fixed interest rate on a 3 or 6 month Citibank term deposit when you invest $10,000 or more.

  • Judo Bank Term Deposit

    Earn a competitive interest rate plus bonus interest when you roll over your deposit into a new term deposit. Terms from 3 months to 5 years. No fees.

  • MyLife MyFinance Term Deposit

    Earn a competitive interest rate on terms between 1 month and 2 years with a MyLife MyFinance term deposit.

  • ANZ Business Notice Term Deposit

    This account offers fixed interest rates for terms ranging from one month to five years, so you can enjoy secure, guaranteed returns on your business funds.

  • RACQ Bank Term Deposit

    Choose a term from one month to five years and earn a competitive, fixed interest rate on your deposit. This account is for Queenslanders only.

  • Locked savings accounts

    If you struggle to save, you could benefit from a savings account that won’t allow you to withdraw funds.

  • Paying tax on term deposit interest

    Find out all about the tax treatment of term deposit interest payments.

  • AMP Bank term deposit $100,000+

    Earn a competitive interest rate on deposits over $100,000 and enjoy flexible term lengths with the AMP Bank term deposit.

  • AMP Bank term deposit $25,000+

    With high interest rates offered in a variety of different terms, the AMP term deposit could be ideal for both short and long term saving goals.

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