Compare term deposit interest rates: The ultimate term deposit comparison guide

You'll know exactly what your investment's worth with a term deposit. Compare term deposit rates across Australia.

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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Initial Deposit

$

Number of months

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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		Go to site More	Compare	loading Fetching your data...
Macquarie Bank Term Deposit		2.55%	2.55%	2.60%	2.65%	2.65%	2.65%	$10,000		Go to site More	Compare	loading Fetching your data...
UBank Term Deposit Account		2.60%	2.70%	2.75%	2.64%	-	-	$1,000		Go to site More	Compare	loading Fetching your data...
AMP Term Deposit $100,000+		2.55%	2.60%	2.80%	2.80%	2.85%	2.85%	$100,000		Go to site More	Compare	loading Fetching your data...
MyState Bank Online Term Deposit		2.50%	2.35%	2.55%	2.70%	2.80%	-	$5,000		Go to site More	Compare	loading Fetching your data...
Firstmac Term Deposit		2.55%	-	2.75%	2.65%	2.75%	-	$5,000		Go to site More	Compare	loading Fetching your data...
AMP Term Deposit $25,000+		2.55%	2.60%	2.80%	2.80%	2.85%	2.85%	$25,000		Go to site More	Compare	loading Fetching your data...
AMP Term Deposit $5000+		2.35%	2.40%	2.60%	2.60%	2.65%	2.65%	$5,000		Go to site More	Compare	loading Fetching your data...

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Compare popular term deposit interest rates

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

In comparison, some other banks in Australia seem to offer more competitive interest rates for term deposits with a $5,000 deposit in a 6-month term.

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

• Other factors you should consider

  • How often interest is calculated and whether or not it is compounded
  • Any ongoing fees that may 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.

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.

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

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.

• 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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