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Term deposit rates June 2022

Term deposits are a safe, easy way to earn a guaranteed return. Right now the best term deposit rates are above 3%, and with the recent cash rate increases they're on the way up.

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If you're looking for somewhere risk-free to boost your savings balance, a term deposit offers a guaranteed return. Just set, forget and let it do the hard, interest-earning work.

Compare term deposit rates

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.
MyState Bank Online Term Deposit
1.00%
1.30%
2.00%
1.75%
2.15%
3.05%
3.35%
Single or joint account-holders can apply online with MyState's online application process.
Pay no account setup or ongoing fees and choose a term length between 3 months and 2 years, with interest paid at maturity.
Rabobank Term Deposit
0.85%
-
-
2.10%
-
3.00%
3.30%
Suited to customers with deposits between $1,000 and $2,000,000.
With a Rabobank Term Deposit you will receive a competitive rate on your deposits and the choice of a 1, 3, 6, 9 or 12 month term.
Citibank Term Deposit $10,000
1.00%
-
-
1.50%
-
2.25%
-
Suited to customers with deposits between $10,000 and $249,999.
This term deposit is for new Citi customers only
Great Southern Bank Term Deposit Account
1.25%
0.50%
0.50%
2.00%
0.55%
3.00%
3.40%
No account set-up fees or ongoing fees to pay.
The Great Southern Bank Term Deposit offers a large range of term lengths from 1 month to five years. Minimum opening deposit is $5,000.
Bank of Sydney Term Deposit Online Exclusive - $1,000-$500,000
1.45%
1.35%
1.45%
1.90%
1.75%
2.15%
-
$0 monthly account keeping fees.
The Online Exclusive Term Deposit by Bank of Sydney offers term lengths from 1 month to 13 months. Withdraw funds before maturity without notice (fees apply).
Illawarra Credit Union Term Deposit $25,000+
-
-
-
-
-
3.15%
3.60%
Limited-time fixed rate offer for customers with deposits of $25,000+.
You can choose between a term length of 1 or 2 years with this term deposit offer.
Judo Bank Term Deposit
1.15%
-
-
1.85%
-
3.15%
3.75%
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.
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What is a term deposit?

A term deposit is a type of savings account 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 and 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.

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, but they're on the way up. They've been low for a few years because the official RBA cash rate was at an all time low of 0.10%. However, the RBA has lifted the cash rate twice already this year, and we've seen term deposit rates go up as a result.

As well as increasing rates, with increased volatility in the share market (and more to come throughout the rest of 2022), a term deposit is one of the safest places for your cash. Your deposit up to $250,000 in a term deposit with an Australian bank is protected by the government bank guarantee scheme.

How to get the best 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, 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

Get a better term deposit rate with a smaller bank

You'll usually get a better term deposit rate by looking outside of the big banks. For example, take a look at some of the current best 6-month term deposit rates below:

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

Term deposit interest calculator

Use our term deposit calculator to find out how much interest you could earn over 12 months.

  1. Deposit amount: Enter your deposit amount.
  2. Interest: Enter the interest rate offered on your 12-month term deposit (for example, 3.00%).
  3. Saving term: Enter the number of months (12) your investment will be held.
*Whilst every effort has been made to ensure the accuracy of this calculator, the results should only be used as an indication. They are neither a recommendation nor an eligibility test for any product and should not be construed as financial advice, investment advice or any other sort of advice.

How to compare term deposits

Consider the following when you're choosing a term deposit:

  • The term length. There are term deposits available from 1 month to 5 years. Decide how long you want to lock your money away before comparing rates for those terms.
  • The rate. Once you know your ideal term length, compare term deposits that offer this length and look for one with the highest rate.
  • The penalties. No-one thinks they will need to break into their term deposit early, but emergencies do happen. Check what the bank's penalties are for making an early withdrawal (some are more severe than others).
  • The interest options. Some term deposits allow you the choice to receive interest monthly, bi-annually, annually or at maturity.
  • The access level. Have a think about how you'll cope without having access to the money. If you're not sure you want to lock it away, but you want to earn interest, a savings account could be a better choice for you.

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 (such as with a mobile banking app)?
  • What happens to the deposit when it matures? For example, will it automatically roll over into another term deposit?

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 are 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 so the rate will not change until the term matures. Because they can change at any time, savings accounts often have 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.

Term deposit vs high-interest savings: What's best for you?

More questions about term deposits

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