Term deposit rates May 2021

Looking for somewhere safe to put your cash this year? A term deposit gives you a fixed return on your money. Just set, forget, and let it do the hard work.

Find a good rate and boost your savings with our handy table filled with over 90 term deposits.

Look to the future with our term deposit comparison

Term Deposit Offer

Judo Bank Term Deposit Offer

0.99 % p.a.

fixed for 6 months

Term Deposit Offer

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.

• Minimum investment: $1,000
• Monthly fees: $0

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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.
Judo Bank Term Deposit Finder Award		0.98%	-	-	0.99%	-	1.05%	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.	Go to site More Info	Compare	loading Fetching your data...
Citibank Term Deposit $10,000		0.75%	-	-	0.75%	-	0.75%	-	Suited to customers with deposits between $10,000 and $249,999. This term deposit is for new Citibank customers only	Go to site More Info	Compare	loading Fetching your data...

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How to get a good 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 for sticking with them
• Negotiate your rate with the bank to see if you can get a better deal

6-month term deposit interest rates

• Judo Bank Term deposit: Earn 0.99% p.a. for 6 months with a minimum deposit of $1,000
• RACQ bank term deposit: Earn 0.55% p.a. for 6 months with a minimum deposit of $1,000
• CUA term deposit: Earn 0.5% p.a. for 6 months with a minimum deposit of just $5,000
• Citibank Term Deposit: Earn 0.75% on 3 or 6 month terms with a deposit of $10,000 or more

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

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, and 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 that is 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, meaning it 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 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's 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 meaning the rate will not change until the term matures. Because they can change at any time, savings accounts often 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

Initial Deposit

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Monthly Deposit

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Period

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Name	Product	Maximum Variable Rate p.a.	Standard Variable Rate p.a.	Bonus Interest p.a.	Fees	Interest Earned
Westpac Life (18-29 year olds only)		3%	0.2%	2.8%	$0		If you’re between 18-29, you can earn a 3% p.a. variable rate each month you grow your balance (excl. interest) and make 5+ settled debit card purchases from your linked Westpac Choice account, up to a balance of $30,000.	Go to site More Info	Compare	loading Fetching your data...
Westpac Life (18-29 year olds only)		0.4%	0.2%	0.2%	$0		If you’re between 18-29, you can earn a 0.4% p.a. variable rate each month you grow your balance (excl. interest) and make 5+ settled debit card purchases from your linked Westpac Choice account, up to a balance of $30,000.	Go to site More Info	Compare	loading Fetching your data...
AMP Saver Account		1.25%	0.1%	1.15%	$0		Earn an ongoing variable 1.25% p.a. when you deposit at least $250 a month, with no monthly spend requirements to meet. Available on balances up to $250,000.	Go to site More Info	Compare	loading Fetching your data...
AMP Saver Account		0.1%	0.1%	0%	$0		Earn an ongoing variable 0.1% p.a. when you deposit at least $250 a month, with no monthly spend requirements to meet. Available on balances up to $250,000.	Go to site More Info	Compare	loading Fetching your data...
Virgin Money Boost Saver (25+ year olds)		1.2%	0.1%	1.1%	$0		Customers aged 25+ can earn an ongoing variable 1.2% p.a. each month you deposit at least $2,000 and make 5+ transactions.	Go to site More Info	Compare	loading Fetching your data...
Virgin Money Boost Saver (25+ year olds)		1.2%	0.1%	1.1%	$0		Customers aged 25+ can earn an ongoing variable 1.2% p.a. each month you deposit at least $2,000 and make 5+ transactions.	Go to site More Info	Compare	loading Fetching your data...
MyState Bank Bonus Saver Account		1.2%	0.1%	1.1%	$0		Ongoing, variable 1.2% p.a. when you deposit at least $20 into the account each month and make 5 or more Visa Debit card transactions from a linked MyState transaction account. Bonus interest available on balances up to $250,000.	Go to site More Info	Compare	loading Fetching your data...
MyState Bank Bonus Saver Account		0.1%	0.1%	0%	$0		Ongoing, variable 0.1% p.a. when you deposit at least $20 into the account each month and make 5 or more Visa Debit card transactions from a linked MyState transaction account. Bonus interest available on balances up to $25,000,000.	Go to site More Info	Compare	loading Fetching your data...
Bank of Queensland Fast Track Starter Account (for 14-24 year olds only)		3%	0.05%	2.95%	$0		Only available to those aged 14-24. Ongoing, variable 3% p.a. when you link to an BOQ Day2Day Plus Account, deposit $200+ into the Day2Day account each month from an external account and make 5 eligible transactions a month. Max bonus interest applies on balances up to $10,000. Balances between $10,001 and $250,000 will earn a lower bonus rate. Base rate applies on balances over $250,000.	Go to site More Info	Compare	loading Fetching your data...
Bank of Queensland Fast Track Starter Account (for 14-24 year olds only)		1.05%	0.05%	1%	$0		Ongoing, variable 1.05% p.a. for balances between $10,001 and $250,000 when you link to an BOQ Day2Day Plus Account, deposit $200+ into the Day2Day account each month from an external account and make 5 eligible transactions a month. Max bonus interest applies on balances up to $10,000.	Go to site More Info	Compare	loading Fetching your data...
Bank of Queensland Fast Track Starter Account (for 14-24 year olds only)		0.05%	0.05%	0%	$0		Earn only base rate of 0.05% % p.a. on balances over $250,000. Max bonus interest applies on balances up to $10,000.	Go to site More Info	Compare	loading Fetching your data...
Citibank Online Saver		1.1%	0.35%	0.75%	$0		Introductory rate of 1.1% p.a. for 4 months, reverting to a rate of 0.35% p.a. Available on balances Up to $500,000.	Go to site More Info	Compare	loading Fetching your data...
Citibank Online Saver		0.35%	0.35%	0%	$0		Introductory rate of 0.35% p.a. for months, reverting to a rate of 0.35% p.a. Available on balances Up to $500,000.	Go to site More Info	Compare	loading Fetching your data...
Virgin Money Boost Saver (18-24 year olds)		1.2%	0.1%	1.1%	$0		Customers aged 18-24 can earn an ongoing variable 1.2% p.a. each month you deposit at least $1,000 and make 5+ transactions.	Go to site More Info	Compare	loading Fetching your data...
Virgin Money Boost Saver (18-24 year olds)		1.2%	0.1%	1.1%	$0		Customers aged 18-24 can earn an ongoing variable 1.2% p.a. each month you deposit at least $1,000 and make 5+ transactions.	Go to site More Info	Compare	loading Fetching your data...
Bank of Queensland Fast Track Saver Account		1.05%	0.05%	1%	$0		Ongoing, variable 1.05% p.a. when you link to an BOQ Day2Day Plus Account, deposit $1,000+ into the Day2Day account each month from an external account and make 5+ eligible transactions per month. Available on balances up to $250,000.	Go to site More Info	Compare	loading Fetching your data...
Bank of Queensland Fast Track Saver Account		0.05%	0.05%	0%	$0		Ongoing, variable 0.05% p.a. when you link to an BOQ Day2Day Plus Account, deposit $1,000+ into the Day2Day account each month from an external account and make 5+ eligible transactions per month. Available on balances up to $1,000,000.	Go to site More Info	Compare	loading Fetching your data...

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Term Deposit vs High-interest Savings: What's best for you?

How to compare term deposits

Like most financial products, there is no best term deposit account. The account that suits your needs and circumstance the best 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 (for example with a mobile banking app)?
• What happens to the deposit when it matures? For example, will it automatically roll over into another term deposit?

Compare term deposit rates based on duration

If you have a specific term length for which you want to lock away your savings and earn interest, it's crucial to compare the different interest rates available for your desired term length. Use our term length guides below to compare term deposit interest rates for various term deposit lengths.

3 month term deposits

Reach your short term savings goals. Compare our featured interest rates for a 3 month term deposit in this guide.

6 month term deposits

Saving up for an upcoming purchase? Compare interest rates for 6 month term deposits and earn interest on your savings.

9 month term deposits

Earn interest on your savings for 9 months. Use our guide to compare some of the best interest rates for a 9 month term deposit.

12 month term deposits

Lock your money away for one year to earn a competitive fixed interest rate on your balance. Compare available interest rates in this guide.

1+ year term deposits

Save for long term goals like a house or university with a term deposit longer than 1 year. Compare your options in this guide.

5 year term deposits

Secure your future by earning a fixed interest rate for 5 years. Read our guide to compare interest rates for 5 year term deposits.

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, and it will also depend on when you receive your interest payments.

Paying tax on your term deposit

As an Australian resident you must pay tax on any income you earn each financial year, and this includes the interest you earn from savings accounts and term deposits. Read our guide to find out how this works.

Read this guide to find out how your term deposit will be taxed

More questions about term deposits

• How does the RBA cash rate affect my term deposit?

  The Reserve Bank of Australia's (RBA) cash rate is one of the factors that bank's consider when setting their interest rates for deposit products. Given that the RBA aims to keep inflation between 2 - 3%, an interest rate of 2.5% or lower on your term deposit could mean that your investment isn't keeping up with inflation. Term deposits, like other investments, are great when the RBA cash rate is high. But when the cash rate is low, you may want to seek alternatives, such as shares.

• Is now a good time to invest in a term deposit?

  Generally a good time to invest in a term deposit is when the RBA cash rate is high, as this normally results in higher interest rates for savings products.

• What are the downsides of a term deposit?

  The downside of a term deposit is that you can’t access your money while it is in the account. If you do need to make a withdrawal you'll need to give at least 31 days notice and you’ll be charged a fee for accessing your money before the term has been completed. You could also be charged an interest rate penalty, which could defeat the purpose of the investment in the first place. In cases of extreme financial hardship this rule can be waived."

• How do I close my term deposit?

  If your term deposit has reached maturity, that is, has reached the end of the agreed period then you withdraw all the funds like a regular bank account. However, if your term deposit is still maturing, then your bank will charge a penalty for withdrawing your funds early. To do this, you'll need to get in touch with your bank directly.

• I'm not an Australian resident, can I open a term deposit?

  Most banks will require an Australian residential address in order to open a term deposit.

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