What are the highest term deposit rates in July 2025?
If you're thinking about getting a term deposit now is a pretty good time. Interest rates are higher than they've been since 2011, and they've just started to fall again. At the moment, the best term deposit rates can be found with short terms.
Here are some of the market's highest 3 month term deposit rates right now:
4.4% for 3 months with Australian Unity
4.3% for 3 months with Gateway Bank
4.25% for 3 months with Judo Bank
And here are some of the best 6 month term rates:
4.6% for a 6 month special term deposit offer by First Option Bank
4.4% for 6 months with Gateway Bank
4.35% for 6 months with Judo Bank
Market update by Alison Banney – Finder money editor
What is a term deposit?
A term deposit is a type of savings account that offers a fixed interest rate for a fixed period. But unlike a savings account, you lock the money away until the term deposit matures (that is, the end of the term).
Some banks let you choose how often to receive your interest payments, usually monthly, quarterly, yearly or when the term ends. Once the term reaches maturity you can pull your initial deposit out plus the interest you've earned.
Term deposits are widely considered to be a safe, low-risk investment as they offer a guaranteed return through a fixed interest rate.
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 (although you may need to restrict withdrawals for the sake of earning bonus interest with some savings accounts).
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. But if you want somewhere safe to park your cash where you're not going to be tempted to spend it, a term deposit could suit.
Another key difference is the interest rate; savings accounts have variable interest rates meaning they can change at any time, while term deposits have fixed interest rates meaning the rate will not change until the term matures.
Judo Bank offers 4% for 12 months, 4.35% for 6 months and 3.95% for 24 months.
It was the best term deposit in the 2025 Finder Awards as it consistently had one of the best rates in the market throughout the judging period.
Why we like it. It offers some of the highest term deposit rates on the market right now, plus there's an extra 0.10% p.a. loyalty bonus for repeat terms.
What to look out for. You'll need to deposit at least $1,000.
The AMP Term Deposit offers 3.9% for 12 months, 4.25% for 6 months and 4.15% for 3 months.
AMP was named as Highly commended in the 2025 Finder Awards as it consistently had one of the best rates in the market throughout the judging period.
Why we like it. It offers high fixed rates for short terms under 12 months.
What to look out for. You'll need to deposit at least $5,000.
Money stuff is usually hard. But term deposits are pretty easy to figure out.
For the Finder Awards, we looked at all term deposit providers in the market. The term deposit must be available for a 1 year term for all adults across Australia, for a $35,000 balance to be included. To calculate the product's score, 90% weighting was applied to the 12-month interest rate across the judging period and 10% weighting was applied to other features and fees.
How to compare term deposits
Consider the following features when choosing a term deposit.
The term length. You can choose a term deposit from 3 months to 5 years. If you're saving for a holiday later in the year, a 12-month term is too long. If you're saving for a house, 3 months is likely too short.
The interest rate. The higher the rate, the more you earn. Most banks offer the highest rates on 6 to 12 month terms.
Early withdrawal rules. 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. The amount of interest you get drops when you break the term deposit too.
Interest payments. Some term deposits pay interest on a monthly basis, annually or at maturity (when the term ends). Getting interest paid at maturity usually means a slightly higher interest rate.
Deposit amounts. Check how much (or how little) the bank requires you to deposit. Some banks won't let you open a term deposit unless you have $25,000. Others start as low as $1,000.
4 tips to get the best term deposit interest 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.
"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."
Term deposits are a really easy way to earn interest on your savings. But many bank customers prefer a high interest savings account because they can often earn a bit more interest and add to their savings each month.
A term deposit is better suited to people who already have some money saved and are able to put it away and not touch it for a while.
Pros and cons of term deposits
Pros
Fixed rates guarantee your exact return.
If rates go down, yours won't change until maturity.
No set up fees or ongoing conditions you need to meet.
Many term deposits offer rates that are equal to or lower than savings accounts.
Hard to access money in an emergency.
A note on interest calculations
Term deposits usually pay simple interest. This is different to compound interest, which adds the interest you've earned to the account's total balance. You earn slightly more interest each month as the previous month's interest is compounded, or added to the account.
A term deposit only earns interest on the initial amount deposited.
Finder survey: What term deposit features do Australians value most?
Response
Competitive interest rate
66.82%
Low or no fees
10%
The term duration
6.82%
Australian Government Bank Deposit Guarantee
6.36%
Online access
5%
Auto renewal option
3.18%
Other
1.82%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023
Why you can trust our banking experts
Obsessed with great rates - We nerd out over RBA decisions and monitor the market daily to make sure you get the best interest rates from banks big, small and digital (and the odd credit union).
Cash in your own time frame - over 160 term deposit options tracked against 8 time frames from 3 months to 5 years. Dig into the data, or get the quick and easy editorial "best" if you're in a hurry.
No BS - We don't have a call centre, we're not owned by a bank. Heck, you don't even need to give us your email. Our job is to get your money to work harder and let that sweet interest grow.
Frequently asked questions about term deposits
Yes, you can have more than 1 term deposit. There are a few reasons why you might want to do this. If you have a large deposit over $250,000, splitting your deposit up between more than 1 bank will ensure all your money is covered under the bank guarantee scheme. You might also choose to open a few different length term deposits for different short or long-term goals.
Term deposits typically do no charge any set-up fees or account keeping fees. You may be required to pay a fee if you want to break your term deposit early, however instead of a fee this usually results in a reduction of interest.
Yes. If you've invested money in a term deposit, you will need to pay tax on the interest you earn (the same goes for savings accounts). Interest is classified as another form of income, so the amount of tax you'll need to pay on your term deposit interest will depend on your overall taxable income.
Once you open a term deposit the interest rate is fixed for the life of the term. Your bank cannot change the interest rate before the end of the term.
If you've got a large balance of $100,000 or more, make sure you look for a term deposit that can be opened for larger balances. Some term deposits are only for smaller deposits of $10,000, $25,000 or $50,000 max.
Here are a few of the best 12-month term deposit rates for balances over $100,000:
If your term deposit has reached maturity, then you withdraw all the funds like with 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.
Most banks will require an Australian residential address to open a term deposit.
When your term deposit matures or reaches maturity means the term length has come to an end. You can then choose to reinvest the money into a new term at the current term deposit rate offered by the bank or switch to a term deposit with a different bank. You can also withdraw the money and add it into a savings account, invest it or spend it - the choice is yours.
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.
Yes, term deposits are one of the safest places you can put your money. They offer a fixed rate for a guaranteed return, plus your deposit up to $250,000 is protected under the government's Financial Claims Scheme.
No, term deposits do not pay compound interest. Instead, term deposits offer simple interest. This means you'll only earn interest on your initial deposit, and not on any interest payments you receive.
The lowdown on Finder Score
We look at 150+ term deposit products across 90+ providers and we compare them against each other to get our simple score out of 10. We consider interest rates across 3,6,12 and 24 month terms, along with other key features, to determine an average score per product. Products with individual terms are scored against their applicable terms only. We assign the majority of the weights to the interest rate as usually that is what customers are seeking in a term deposit.
The Finder Score methodology is designed by our Insights team. Commercial partners carry no weight and all products are reviewed objectively.
Digging deeper into the Finder term deposits score
9+ Excellent - These products offer competitive rates for consumers across applicable terms.
7+ Great - These products tend to offer slightly lower rates but are still competitive.
5+ Satisfactory - Typically offering above average rates.
Less than 5 – Basic - The least competitive interest rates.
Looking for something else?
Business term deposits provide fixed interest rates and the security of guaranteed returns.
Long term deposits lock in rates from anywhere from 12 months to five years.
Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio
Alison's expertise
Alison has written 651 Finder guides across topics including:
How do I apply for the additional 0.1% loyalty offer
Finder
SarahJune 30, 2025Finder
Hi William,
You don’t need to apply, it will be added automatically if you choose to reinvest your money into another Judo Bank term deposit. Let’s say your initial 6-month term deposit earns a 5.00% interest rate. At the end, you reinvest it the new term deposit for 6-months, which has a 5.00% interest rate plus the 0.10% loyalty bonus. This results in a 5.10% interest rate for the new term. Hope this helps!
MikeMay 9, 2025
How trustworthy is Income Direct? They offer rates on their web site that seem just “too good to be true” and if trustworthy are they covered by government guarantee? The website I am referring to is http://www.incomedirect.com.au
Finder
SarahMay 9, 2025Finder
Hi Mike,
It looks like this is a commercial business that offers extremely high (above market) returns. Usually, this means you will take on greater risks if you decide to “invest” your money with them. We have had no dealings or experience with them, so we can’t offer an opinion if they are trustworthy or not. Though I do note, on their website it states:
Income Direct is not authorised under the Banking Act 1959 and is not supervised by the Australian Prudential Regulation Authority. Income Direct’s Fixed Income Accounts are not covered by the depositor protection provisions in section 13A of the Banking Act 1959, and are not covered by the Australian Government’s bank deposit guarantee (also commonly referred to as the Financial Claims Scheme) under the Banking Act 1959.
I hope this helps you make an informed decision. Best of luck!
RobApril 24, 2025
Hi, when opening a Savings Account do you will automatically open a Transaction Account with a nil balance and are any fees applicable to either account and does the Government Guarantee scheme apply to Savings Accounts as well as Term Deposits?
Finder
AlisonApril 28, 2025Finder
Hi Rob,
This will vary between banks. Usually yes, you will get an everyday transaction account along with a new savings account. Some transaction accounts charge monthly account keeping fees, it’s best to check this with the bank prior to opening an account. Savings accounts don’t charge any monthly fees.
Yes, the government guarantee scheme applies to savings accounts, transaction accounts and term deposits. Note that the scheme covers you for up to $250k per person per bank (not per account). So it’s a combined total of all your deposits with the bank. You can read more about this here: http://finder.com.au/bank-accounts/bank-protect-money
Thanks,
Alison
DesDecember 4, 2024
Hi there, will the government guarantee scheme cover up to $250000 invested per bank that’s listed under the scheme i.e. say $500000 between 2 banks?
Finder
RichardDecember 9, 2024Finder
Hello Des,
Yes it is per bank. Or more correctly, per ADI (authorised deposit-taking institution). So if you had $250,000 with the Commonwealth Bank and $250,000 with Westpac it’s all covered. However, if you had $250,000 with Westpac and another $250,000 with St.George you would only be covered for $250,000. That’s because Westpac owns St.George.
antonioOctober 30, 2024
Hi Is Mac credit union australia a safe bank with good reviews
Finder
AngusOctober 31, 2024Finder
Hi Antonio, The Mac is a authorised deposit-taking institute (ADI) in Australia, which means it’s covered by the government guarantee scheme for savings up to $250,000.
They offer a fixed interest rate (so you don't need to worry about any market volatility) and your deposit up to $250,000 is protected by the government.
Your guide to finding the best term deposit accounts for kids, allowing your children to enjoy the security of guaranteed returns on the money they invest.
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Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Obsessed with great rates - We nerd out over RBA decisions and monitor the market daily to make sure you get the best interest rates from banks big, small and digital (and the odd credit union).
Cash in your own time frame - over 160 term deposit options tracked against 8 time frames from 3 months to 5 years. Dig into the data, or get the quick and easy editorial "best" if you're in a hurry.
No BS - We don't have a call centre, we're not owned by a bank. Heck, you don't even need to give us your email. Our job is to get your money to work harder and let that sweet interest grow.
How do I apply for the additional 0.1% loyalty offer
Hi William,
You don’t need to apply, it will be added automatically if you choose to reinvest your money into another Judo Bank term deposit. Let’s say your initial 6-month term deposit earns a 5.00% interest rate. At the end, you reinvest it the new term deposit for 6-months, which has a 5.00% interest rate plus the 0.10% loyalty bonus. This results in a 5.10% interest rate for the new term. Hope this helps!
How trustworthy is Income Direct? They offer rates on their web site that seem just “too good to be true” and if trustworthy are they covered by government guarantee? The website I am referring to is http://www.incomedirect.com.au
Hi Mike,
It looks like this is a commercial business that offers extremely high (above market) returns. Usually, this means you will take on greater risks if you decide to “invest” your money with them. We have had no dealings or experience with them, so we can’t offer an opinion if they are trustworthy or not. Though I do note, on their website it states:
Income Direct is not authorised under the Banking Act 1959 and is not supervised by the Australian Prudential Regulation Authority. Income Direct’s Fixed Income Accounts are not covered by the depositor protection provisions in section 13A of the Banking Act 1959, and are not covered by the Australian Government’s bank deposit guarantee (also commonly referred to as the Financial Claims Scheme) under the Banking Act 1959.
I hope this helps you make an informed decision. Best of luck!
Hi, when opening a Savings Account do you will automatically open a Transaction Account with a nil balance and are any fees applicable to either account and does the Government Guarantee scheme apply to Savings Accounts as well as Term Deposits?
Hi Rob,
This will vary between banks. Usually yes, you will get an everyday transaction account along with a new savings account. Some transaction accounts charge monthly account keeping fees, it’s best to check this with the bank prior to opening an account. Savings accounts don’t charge any monthly fees.
Yes, the government guarantee scheme applies to savings accounts, transaction accounts and term deposits. Note that the scheme covers you for up to $250k per person per bank (not per account). So it’s a combined total of all your deposits with the bank. You can read more about this here: http://finder.com.au/bank-accounts/bank-protect-money
Thanks,
Alison
Hi there, will the government guarantee scheme cover up to $250000 invested per bank that’s listed under the scheme i.e. say $500000 between 2 banks?
Hello Des,
Yes it is per bank. Or more correctly, per ADI (authorised deposit-taking institution). So if you had $250,000 with the Commonwealth Bank and $250,000 with Westpac it’s all covered. However, if you had $250,000 with Westpac and another $250,000 with St.George you would only be covered for $250,000. That’s because Westpac owns St.George.
Hi Is Mac credit union australia a safe bank with good reviews
Hi Antonio, The Mac is a authorised deposit-taking institute (ADI) in Australia, which means it’s covered by the government guarantee scheme for savings up to $250,000.