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Compare 12 month term deposits

Keep your savings in a 12 month term deposit and earn a fixed interest rate on your investment.

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A 12 month term deposit locks your money away for one year, and offers you a competitive fixed interest rate on your balance. It's a great way to help you reach medium to long term savings goals; because the interest rate is fixed you can easily calculate how much your investment will earn over the life of the term. You can't access your money until the term expires, so you won't be able to waste it on impulse purchases.

A 12 month term deposit is a low risk way to earn a return on your cash. Plus, your deposit up to $250,000 is protected under the Australian Government Guarantee Scheme.

Term Deposit Offer

Citibank Term Deposit $10,000

0.45 % p.a.

fixed for 12 months

Term Deposit Offer

Suited to customers with deposits between $10,000 and $249,999.
This term deposit is for new Citibank customers only

  • Minimum investment: $10,000
  • Monthly fees: $0
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Compare 12 month term deposit rates

Data indicated here is updated regularly
Name Product 9 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. 48 Mths p.a. 60 Mths p.a. Minimum Opening Deposit
Citibank Term Deposit $10,000
0.45%
0.45%
-
-
-
-
$10,000
Judo Bank Term Deposit
Finder Award
Judo Bank Term Deposit
1.21%
1.23%
1.45%
1.55%
1.30%
1.35%
$1,000
Rabobank Online Savings Term Deposit
0.90%
0.80%
0.80%
0.80%
0.90%
1.00%
$1,000
Macquarie Bank Term Deposit
0.55%
0.55%
0.55%
0.55%
0.55%
0.55%
$5,000
Bank of Queensland Term Deposit
0.50%
0.60%
0.65%
0.65%
0.65%
-
$5,000
AMP Term Deposit $25,000+
0.55%
0.60%
0.60%
0.60%
0.60%
0.60%
$25,000
CUA Term Deposit Account
0.60%
0.70%
0.80%
0.80%
0.80%
0.80%
$5,000
AMP Term Deposit $5000+
0.35%
0.40%
0.40%
0.40%
0.40%
0.40%
$5,000
Commonwealth Bank Term Deposit
0.40%
0.65%
0.55%
0.60%
0.60%
0.60%
$5,000
Westpac Term Deposit
0.50%
0.60%
0.60%
0.60%
0.60%
0.60%
$5,000
ANZ Term Deposit
0.20%
0.25%
0.35%
0.35%
0.35%
0.45%
$5,000
NAB Term Deposit
0.50%
0.60%
0.70%
0.70%
0.70%
0.90%
$5,000
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Compare up to 4 providers

finder.com.au's featured 12 month term deposits

Product name12 months p.a. (at maturity)
ME Term Deposit0.9% p.a.
AMP Term Deposit0.6% p.a.
UBank Term Deposit0.65% p.a.
RACQ Bank Term Deposit0.75% p.a.
MyState Bank Online Term Deposit0.9% p.a.
Firstmac Term Deposit0.5% p.a.
Bankwest Online Term Deposit0.85% p.a.
St.George Term Deposit0.6% p.a.

What is a term deposit?

A term deposit is a type of savings account where you deposit a certain amount of money for an agreed period of time and earn a fixed rate of interest. You can choose how long you want to lock your money away, from as little as one month to five years. The fixed interest rate will be determined by the financial provider or bank, and the rates will vary between providers. Term deposits are different from a savings account because you can't access the funds. If you do need to access the money before the term ends (known as maturity), you'll need to give at least 31 days' notice and will likely need to pay a penalty.

Which 12 month term deposit is best?

There is no term deposit that is best, and what is best for you might not be best for someone else. The right term deposit for you will have a competitive interest rate and be a length that suits you. If you don't want to commit to a 12 month term, consider a 6-month term deposit or even a 3-month term deposit instead.

Use our term deposit 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 do I earn interest with a term deposit?

A term deposit gives you a fixed interest rate in return for investing your money for a fixed amount of time. For example, if you opt for a 12 month term deposit you will lock away your funds for one year and you can't withdraw the money. In return, your bank awards you a competitive interest rate that's traditionally higher than a savings account.

You can elect to receive interest payments monthly or all at once after your term deposit reaches maturity. You can often elect which Australian bank account you'd like to receive your interest payments into. Remember, if you do need to make an early withdrawal, you will be charged fees and lose some of the interest you have earned.

How do I find the best 12 month term deposit for me?

Here's a number of factors to consider when you compare term deposit accounts:

The fixed interest rate

Your interest rate represents the return you'll get for investing your funds. The amount of interest applied to your term deposit will differ between various banks. In some instances the difference is substantial, making this an important feature to consider. Use our term deposit calculator above to see how much of a difference various rates could make to your investment.

Interest payment frequency

With a 12 month term deposit you could choose to have interest earned paid to you monthly, semi-annually or when the account matures.

Few or no fees

You shouldn't be charged any establishment or monthly account-keeping fees on a 12 month term deposit. With the exception of the penalty charge for an early withdrawal, there shouldn't be any other fees applied.

Minimum balance requirement

Term deposits have balance requirements that differ depending on the financial institution. Some only cater to higher deposits of $5,000 or more, while other banks allow for an account with a minimum balance of just $1,000.

What are the advantages and disadvantages of a 12 month term deposit?

Pros

  • You're not charged a monthly fee. There are no monthly deductions from your savings to cover the cost of maintaining the account. This means your money works harder for you.
  • It encourages you to save. You have an extra incentive to keep your savings inside the account by facing penalties for an early withdrawal. It's kind of like forced savings.
  • You could get a competitive interest rate. A 12 month term deposit provides you with a competitive interest rate to help build your savings faster. However, remember to compare your options before you commit to any product.

Cons

  • You can't access the term deposit until it matures. If you needed to withdraw your savings in order to cover an emergency expense, you'll need to give 31 days' notice (though flexibility applies for financial hardship). For this reason as well as the penalty, it is important to carefully decide how much you can afford to have tied up in a term deposit for 12 months.
  • There's a minimum balance requirement. You usually need to have a lump sum of $1,000 to start a term deposit. If you don't have this, consider a savings account instead.

Are term deposits safe?

Yes, term deposits are considered a low-risk investment. Personal deposits of up to $250,000 are protected under the Government Guarantee per person, per institution. This means if something were to happen to the bank, your deposit up to the value of $250,000 is guaranteed by the government.

If you've got, say, $500,000 in a term deposit with one bank then only $250,000 would be protected under this scheme. however, if you split your money and put $250,000 into two separate term deposits with two different banks, then both deposits would be protected under the scheme.

What happens to my 12 month term deposit when it reaches maturity?

If you don't let the bank know of your intent to have the funds released at maturity, it could automatically start it in a new 12 month term deposit account, potentially at a lower interest rate. To avoid this, you must contact the financial institution before the account matures and let them know that you will be withdrawing the money.

Wait, I still have some questions about term deposits

Will I be able to choose when the interest is paid into my account with a 12 month term deposit?

In most cases, yes – with the longer term deposits you are able to choose between monthly, biannual or annual interest payments.

Are there online 12 month term deposits or do I have to visit a branch to set one up?

A large number of financial institutions which operate solely online do offer online term deposits, as do your traditional banks.

Can I have the interest payments made into another account?

Some banks do allow you to have the interest paid into your transaction account with another bank.

The latest in term deposits

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