Term deposit comparison: Compare term deposit interest rates

You'll know exactly what your investment's worth with a term deposit.

Finding the right term deposit for your situation can help you reach your savings goal faster. Here at finder.com.au we understand that not all investors are the same, so we've compared a range of term deposits with competitive interest rates and different term lengths.

You can instantly compare Australian term deposits in the table below by entering your deposit amount and number of months you intend to invest for. Click on "Calculate" to see how much interest you can earn.

Term Deposit Offer

Citibank Term Deposit

2.80 % p.a.

fixed for 6 months

Term Deposit Offer

Enjoy a competitive interest rate and guaranteed returns on balances from $100,000 with a Citibank Term Deposit Account. Plus, pay no account keeping fees.

  • Minimum investment: $100,000.00
  • Monthly fees: $0.00
  • Interest payment options: annually or at maturity
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Compare term deposit interest rates

Rates last updated August 18th, 2018
$
Name Product 3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. Min Deposit Interest Earned
Citibank Term Deposit
2.60%
-
2.80%
3.00%
-
-
$100,000
Bank Australia Term Deposit Account
1.15%
1.15%
1.55%
1.85%
2.15%
2.35%
$500
Bank Australia Term Deposit Account 5000+
2.20%
2.20%
2.60%
2.85%
2.95%
3.00%
$5,000
MyState Bank Online Term Deposit
2.50%
2.35%
2.55%
2.70%
2.80%
-
$5,000
Firstmac Term Deposit
2.55%
-
2.75%
2.65%
2.75%
-
$5,000
AMP Term Deposit $25,000+
2.55%
2.60%
2.80%
2.85%
2.95%
3.00%
$25,000
AMP Term Deposit $100,000+
2.55%
2.60%
2.80%
2.85%
2.95%
3.00%
$100,000
AMP Term Deposit $5000+
2.35%
2.40%
2.60%
2.65%
2.75%
2.80%
$5,000
BCU Term Deposit
1.25%
0.71%
1.40%
1.45%
2.55%
1.80%
$1,000

Compare up to 4 providers

Compare term deposit interest rates offered by ANZ, CBA, NAB & Westpac

You may be wondering what the Big Four banks offer when it comes to term deposits, and how this differs to the rates offered by other banks. Compare ANZ term deposit rates, CBA term deposit rates, NAB term deposit rates and Westpac term deposit rates for a $5,000 deposit in a 6-month term below.

Product Interest rate Min. deposit
ANZ term deposit 1.50% p.a. for 6 months $5,000
CBA term deposit 1.75% p.a. for 6 months $5,000
NAB term deposit 2.05% p.a. for 6 months $5,000
Westpac term deposit 2.05% p.a. for 6 months $5,000

Compare term deposit interest rates offered by other banks

In comparison, some other banks offer higher interest rates for a $5,000 deposit in a 6-month term:

Product Interest rate Min. deposit
Ubank term deposit 2.75% p.a. for 6 months $1,000
Firstmac term deposit 2.75% p.a. for 6 months $5,000
CUA term deposit 2.70% p.a. for 6 months $5,000
AMP term deposit 2.60% p.a. for 6 months $5,000

Read this guide to compare some of Australia's best term deposit interest rates for August 2018.

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

A term deposit is an account that is opened for a certain period of time. During this period your funds are locked, so you won't be able to access it (penalties apply if you do). Your money earns interest according to the interest rate that is stated 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.

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 duration that suits you
  • A minimum deposit amount you're comfortable with

Compare term deposit interest 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.

Can't decide on a term length? Read our guide on choosing between a long-term vs short-term deposit.

Do I have to pay tax on a term deposit?

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.

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.

The latest in banking and investments

Savings Account Offers

Important Information*
Bankwest Hero Saver

Maximum Variable Rate

2.60

Standard Variable Rate

0.01
AMP Saver Account

Maximum Variable Rate

2.55

Standard Variable Rate

2.10
RaboDirect High Interest Savings Account

Maximum Variable Rate

3.05

Standard Variable Rate

1.80
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