Term deposit rates for $100,000+ balances
See current term deposit rates and learn what to consider before you lock $100,000 away into a term deposit.
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Finder Score for term deposits
Finder Score assigns Term Deposit products a score out of 10, comparing interest rates and features, to make comparison easier. We assess over 150 products from more than 90 providers, assessing products across different terms to determine an average score per product.
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.
How does a $100,000 term deposit work?
A term deposit allows you to deposit an amount of money and earn a fixed return. If you have $100,000 (or even more) to invest, a term deposit provides a safe solution for holding onto your cash.
Perhaps you've 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 term deposit is an incredibly low-risk option to earn a return on the money while you're not yet using it elsewhere.
You can choose a term length (from 1 month to 5 years) and you'll get a fixed interest rate for this time, meaning the rate won't change. You can also choose how often to receive your interest payments, whether it's monthly, annually or at maturity.
How do I compare term deposits for $100,000?
The interest rate.
Look for a term deposit with a high interest rate. Banks will offer different rates on different term lengths.
Term length.
If you know exactly how long you want to lock your money into a term deposit, compare the rates for this term length only. Some banks will offer a lot more choice in term length than others.
Interest payments.
How often does the term deposit pay you interest? Some will give you the choice to receive interest payments monthly, quarterly or annually while others will only pay interest on account maturity.
Penalties for early withdrawal.
Banks will often charge you a penalty if you need to withdraw your savings balance before the terms end. Some will charge a fee, some will reduce your interest, and some will do both. Check what the rules are before you open the term deposit, just in case you need to access the money early.
Savings accounts versus term deposits for balances over $100,000
Finder's Consumer Sentiment Tracker (February 2025, n=1,029) reveals that if Australians found themselves with $100,000 all of a sudden, almost 20% of us would put the money into a high interest savings account.
High interest 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. This usually includes things like making regular deposits (sometimes up to $1,000 per month), making a set number of purchases or limiting your withdrawals. Term deposits don't have any ongoing requirements to meet - it's a set-and-forget option.
Savings accounts also offer variable interest rates, meaning they can change at any time. Term deposit rates are fixed, so you can have peace of mind the rate won't change for the life of your term. This could help with planning as you're able to calculate exactly how much your deposit will grow by the end of your term.
Our expert says
"One benefit of a savings account over a term deposit is that you can access the money instantly whenever you need it. This is helpful if you have a large, unplanned expense pop up or you find another investment opportunity that you want to act on quickly.
If you're going to invest a large sum of money into a term deposit, make sure you also keep enough cash aside in either a bank account or savings account to access quickly if you need to."
Pros and cons of a term deposit for $100k balance
Pros
- Fixed interest rate. Your rate is fixed for the duration of your term, so you can plan ahead.
- Safe investment. Term deposits are an incredibly low-risk investment option - unlike other investments, it's not possible to lose money.
- Choice of length. You can choose how long to lock your money away, from 1 month to 5 years.
- Deposit is guaranteed. Deposits up to $250,000 are protected under the Australian Government Guarantee.
Cons
- Money is locked. You can't access the money, which could be restrictive if you have unexpected, large expenses.
- Low interest rates. If interest rates rise after you open your term deposit, you're locked into the lower rate until the term ends and you can reinvest with a new one.
- Less return than other investments. Other investments, like shares, would likely offer better returns but come with a lot more risk.
Frequently asked questions
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