Term deposit rates July 2025

Term deposit rates are falling, but there's still time to lock in a fixed rate over 4.50% p.a.

Product Finder Score 3 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a.
Finder Score
3 Mths p.a.
3.85%
6 Mths p.a.
4.15%
12 Mths p.a.
3.80%
24 Mths p.a.
3.40%
Lock in a rate as high as 4.15% for 6 months with a minimum $1,000 deposit.
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Finder Score
3 Mths p.a.
4.25%
6 Mths p.a.
4.00%
12 Mths p.a.
4.00%
24 Mths p.a.
3.45%
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Compare product selection
Finder Score
3 Mths p.a.
3.90%
6 Mths p.a.
3.90%
12 Mths p.a.
4.00%
24 Mths p.a.
3.40%
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Compare product selection
Judo Bank logo
Finder Score
Judo Bank Term Deposit
Finder Award
$1,000 min. deposit
Finder Score
3 Mths p.a.
4.25%
6 Mths p.a.
4.35%
12 Mths p.a.
4.00%
24 Mths p.a.
3.95%
You can get competitive interest rates on all term lengths. This term deposit has a low minimum deposit amount and is a 2025 Finder Award winner.
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State Bank of India logo
Finder Score
Finder Score
3 Mths p.a.
4.30%
6 Mths p.a.
4.25%
12 Mths p.a.
4.15%
24 Mths p.a.
4.00%
More info
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Laboratories Credit Union logo
Finder Score
Laboratories Credit Union Fixed Term Deposit
Finder Score
3 Mths p.a.
2.60%
6 Mths p.a.
3.10%
12 Mths p.a.
4.10%
24 Mths p.a.
3.40%
More info
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G&C Mutual Bank logo
Finder Score
G&C Mutual Bank Term Deposit
$1,000 min. deposit
Finder Score
3 Mths p.a.
4.25%
6 Mths p.a.
4.40%
12 Mths p.a.
4.10%
24 Mths p.a.
3.85%
More info
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Heartland Bank logo
Finder Score
Heartland Bank Term Deposit
$25,000 min. deposit
$1,000,000 max. deposit
Finder Score
3 Mths p.a.
4.30%
6 Mths p.a.
4.40%
12 Mths p.a.
4.10%
24 Mths p.a.
3.75%
More info
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Bank of China logo
Finder Score
Bank of China Special Term Deposits
Finder Score
3 Mths p.a.
4.10%
6 Mths p.a.
4.30%
12 Mths p.a.
4.10%
24 Mths p.a.
-
More info
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Illawarra Credit Union logo
Finder Score
Finder Score
3 Mths p.a.
4.25%
6 Mths p.a.
4.15%
12 Mths p.a.
4.10%
24 Mths p.a.
-
More info
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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.

Best term deposits

These accounts were winners in the 2025 Finder Awards.

Winner: Best term deposit

Judo Bank Term Deposit

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.

Highly commended: Best term deposit

ING Term Deposit

The ING Term Deposit offers 3.95% for 12 months, 4.15% for 6 months and 4.3% for 3 months.

ING 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. Terms over 12 months are less competitive. Plus, you'll need to deposit at least $1,000.

Highly commended: Best term deposit

AMP Term Deposit $5000+

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.

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

  1. Consider smaller lenders, credit unions and digital banks. Don't just look at the Big Four.
  2. Compare term lengths: 6-month rates are often better than 3-month rates, and 24-month rates are often better again.
  3. Look for providers that offer extra interest as a loyalty bonus.
  4. Negotiate your rate with the bank to see if you can get a better deal.
Richard Whitten's headshot

"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."

Money Editor

Is a term deposit right for me?

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.
  • Backed by the Australian government bank guarantee scheme up to $250,000.
  • Choose to invest from 1 month to 5 years.

Cons

  • If rates go up, your rate won't change until maturity.
  • Term deposits offer simple interest, not compound interest.
  • 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.

Use a term deposit calculator to see how much you'll earn.

Finder survey: What term deposit features do Australians value most?

Response
Competitive interest rate66.82%
Low or no fees10%
The term duration6.82%
Australian Government Bank Deposit Guarantee6.36%
Online access5%
Auto renewal option3.18%
Other1.82%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023

Why you can trust our banking experts

helpObsessed 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).
freeCash 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.
independentNo 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

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?

Richard Whitten's headshot
Serina Bird's headshot
To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten and reviewed by Serina Bird, a member of Finder's Editorial Review Board.
Alison Banney's headshot
Written by

Editorial Manager, Money

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:
  • Superannuation
  • Savings accounts, bank accounts and term deposits
  • Budgeting and money-saving hacks
  • Managing the cost of living

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42 Responses

    Default Gravatar
    WilliamJune 25, 2025

    How do I apply for the additional 0.1% loyalty offer

      AvatarFinder
      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!

    Default Gravatar
    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

      AvatarFinder
      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!

    Default Gravatar
    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?

      AvatarFinder
      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

    Default Gravatar
    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?

      AvatarFinder
      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.

    Default Gravatar
    antonioOctober 30, 2024

    Hi Is Mac credit union australia a safe bank with good reviews

Read more on Term Deposits

  • Compare term deposit rates from the Big Four banks

    Compare term deposit rates from Australia's Big Four banks and see if you can find a better rate with a smaller bank.

  • UniBank Term Deposit

    Lock in a fixed rate on a range of term lengths between 3 months and 3 years for deposits $1000 or more.

  • Australian Unity Term Deposit

    Australian Unity Term Deposit offers you a wide choice of term lengths for your investment, with a fixed rate of return on your money.

  • Heartland Bank Term Deposit

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

  • Locked savings accounts

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

  • 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.

  • When will term deposit rates go up?

    When can you expect term deposit interest rates to increase? Find out in this handy guide.

  • Are term deposits safe?

    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. 

  • Term deposit accounts for kids

    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.

  • Historical term deposit interest rates

    If you trying to decide on the best time to invest in a term deposit, start here. See the past interest rates on term deposits from 1985 until now.

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