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Term deposit rates for $100,000+ balances
If you've got $100,000 to invest in a term deposit, you'll generally get a better rate for a longer term length.
Key takeaways
- Term deposits give you a guaranteed return for a certain period, making them a good option for larger balances.
- If interest rates drop, using a term deposit could mean you lock in a higher rate than you can get with a savings account.
- Balances up to $250,000 in a term deposit are protected by the Australian Government Guarantee Scheme.
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How does a $100,000 (and over) term deposit work?
If you have recently inherited a large amount of cash, have proceeds from a home sale with no new home to buy yet, or are an investor who is in between opportunities, a $100,000 term deposit provides a safe solution for holding onto your cash. This is also a good account to consider if you want to ensure that your retirement funds will be available for when you are ready to start spending them.
How do I compare $100K term deposits?
- Interest rates. A term deposit works like a high interest savings account, allowing you to earn a form of income from your account balance. With some banks you will find that you are paid higher rates when your balance is over $100,000.
- Terms. Consider carefully how long you want to have your balance locked into a term deposit account. Terms can range from anywhere between one month to five years, giving you the choice in when the account will mature.
- Interest payments. Most term deposits earn simple interest, meaning you don't earn interest on the interest. Compound interest, like that earned in a savings account is a way in which you could grow your savings exponentially.
- Fees. Look at the details of each term deposit to ensure that you are not being charged any monthly fee.
- Penalties. Banks will often charge you a penalty if you are in a position where you need to withdraw your savings balance before the terms end.
Notice saver accounts
Some banks in Australia have added the option of notice term savers accounts, where instead of choosing a length of time for the deposit, you choose how much notice you need to provide before withdrawing the money. Depending on the institution, you may find that the interest rates are slightly lower, but this is worth considering if you want a little more flexibility.
Compare the pros and cons of a term deposit with a high balance
Pros
- High interest earnings. Term deposits give you the chance to passively earn a higher yield on your balance than you would with a standard bank account.
- Incentive to save. As your funds are "locked in" an account, it could be an incentive to not spend your savings.
- Choice of length. You have the chance to set the terms that work best for you, as well as the way in which your interest payments are made.
- Your deposit is guaranteed. The Australian Government Guarantee Scheme covers up to $250,000 per person, per ADI. If your deposit surpasses this limit, it is no longer protected by the Government Guarantee.
Cons
- Restrictive. If you do find that you need the money sooner than you thought, not only may it take some time to get it, but you could be facing additional fees and penalties for early withdrawals.
- Interest rates are lower than some savings accounts. Many bonus savings accounts offer a higher interest rate than term deposits do, however they'll usually have some monthly conditions to meet.
Savings accounts versus term deposits for balances over $100,000
Bonus savings accounts often offer higher interest rates than term deposits, but you'll need to be willing to meet a few ongoing monthly account conditions (such as a monthly deposit condition).
If you're happy to meet some ongoing requirements like making regular deposits, making a set number of purchases or limiting your withdrawals then you can get a higher rate with a bonus saver. But if you simply want an account you can 'set-and-forget' your deposit, a term deposit will be the way to go.
Take a look at Finder's savings account comparison to see how much interest you can earn with a bonus savings account instead of a term deposit. Remember to note the different monthly account conditions for each account in order to earn the maximum bonus rate. You can use the calculator above the table to change your initial deposit value and the term length.
FAQs about $100,000 term deposits
More resources on Finder
More guides on Finder
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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.
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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.
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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.
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Heartland Bank Term Deposit
Earn a competitive interest rate on terms between 1 month and 2 years with a Heartland Bank term deposit.
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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.
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Compare 5-year term deposits and maximise your savings
A 5-year term deposit combines competitive fixed interest rates with the security of guaranteed returns.
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People’s Choice Credit Union Term Investment
Set your own terms and conditions for how your money grows with a flexible investment account that rewards you with higher interest earnings.
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Term deposit calculator
With the help of a term deposit calculator you get a better idea of how much you need and for how long to invest so you can meet your financial goals.
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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.