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Compare 3 month term deposits

Finding the best term deposit rate for 3 months will help you meet your short-term savings goals.

A term deposit is a type of high interest savings account, except it locks your money away so you can't spend it until the term has matured. Term deposits have many advantages and they're a safe investment option with a competitive fixed interest rate that will not change until the term ends. Finding the best 3 month term deposit rate in Australia will help your investment grow.

Learn what a term deposit is and how it works in this guide, plus compare 3 month term deposit rates from a range of Australian financial institutions.

Term Deposit Offer

Citibank Term Deposit

2.60 % p.a.

fixed for 3 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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Compare 3 month term deposit rates

Rates last updated October 16th, 2018
$
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
Macquarie Bank Term Deposit
2.50%
2.50%
2.55%
2.60%
2.60%
2.65%
$10,000
UBank Term Deposit Account
2.70%
2.70%
2.75%
2.75%
-
-
$1,000
MyState Bank Online Term Deposit
2.50%
2.35%
2.55%
2.70%
2.80%
-
$5,000
RACQ Bank Term Deposit
2.35%
2.60%
2.55%
2.70%
2.70%
2.80%
$1,000
Firstmac Term Deposit
2.55%
-
2.75%
2.65%
2.75%
-
$5,000
AMP Term Deposit $25,000+
2.45%
2.50%
2.75%
2.75%
2.85%
2.85%
$25,000
AMP Term Deposit $100,000+
2.45%
2.50%
2.75%
2.75%
2.85%
2.85%
$100,000
AMP Term Deposit $5000+
2.25%
2.30%
2.55%
2.55%
2.65%
2.65%
$5,000

Compare up to 4 providers

What is a 3 month term deposit and how does it work?

Term deposits are accounts that typically offer a higher rate of interest the longer you keep the money in the account. You can choose a term length from one month to five years with most banks, but note that you can't access your money until the term length is over. If you really need to make a withdrawal before your term deposit has matured you'll need to give at least 31 days notice and you may need to pay a penalty.

A 3 month term deposit is a short-term savings product, where the interest is calculated daily and paid to you at the end of the term. This means you'll benefit from compound interest. With some banks, a 3 month term deposit will roll over into a new one when the term comes to an end unless you have notified the bank of your intention to withdraw your savings beforehand.

finder.com.au's featured 3 month term deposits

Term deposit3 Months p.a.
UBank2.70% p.a. (at maturity)
RaboDirect2.30% p.a. (at maturity)
St.George2.05% p.a. (at maturity)
Bank of Melbourne2.05% p.a. (at maturity)
BankSA2.05% p.a. (at maturity)
Commonwealth Bank1.75% p.a.
ANZ1.35% p.a.
NAB2.00% p.a.
Westpac2.00% p.a.

How do I compare 3 month term deposits?

Term deposits are flexible and allow you to structure them the way you want. If you decide that the shorter, 3 month term deposit is all you need, there are features you will want to consider when making your comparisons with different banks. Here are a few things to look for:

A competitive fixed interest rate

Different banks will offer different rates on their 3 month term deposits. In order to find the best rate for your 3 month term deposit you'll need to shop around and compare your options.

No fees

There are typically no establishment or account keeping fees with a 3 month term deposit, but you should check what the penalty is for an early withdrawal.

A minimum balance you can commit to

The amount you can invest into a 3 month term deposit does vary between banks, with some allowing deposits as low as $1,000, while others may require you to deposit at least $5,000. Keep in mind that these accounts are not only structured to pay a higher interest rate for longer terms, in some cases they may also offer higher interest rates for a higher balance.

Interest is paid when it suits you

As a result of the shorter term, with most 3 month term deposits you will receive your interest earnings once the account reaches maturity. Make sure the interest is paid daily so you can benefit from compound interest.

finder.com.au's top tip

Make sure you're comfortable with the length of your term deposit and that you won't need to access the money before the term expires. If you do need to withdraw early you'll not only have to pay a penalty, but the interest rate may be lowered as well.

If you think you can lock your money away for longer than three months, consider a longer term deposit instead. The longer the term length, the more you'll benefit from compound interest.

What are the risks of a term deposit?

As far as investments go, a 3 month term deposit is considered to be a low-risk way to increase savings. Your deposits up to $250,000 are guaranteed by the Australian Government. However, there are some things to avoid when using a 3 month term deposit as a place to hold your savings:

  • Penalties

If you needed the money in your 3 month term deposit before the end of the term, you would have to pay some penalty fees to the bank. In addition, the interest rate may be changed to reflect the lower rate that a shorter term deposit has.

What term deposit penalties apply if I withdraw early?

  • Automatic rollover

Although you do set the amount of time when choosing a 3 month term deposit, some banks will automatically roll the balance into a new term deposit if you don't let them know beforehand that you will be withdrawing your money. This means your new term deposit may be a lower interest rate.

What are the pros and cons of opening a term deposit?

Before locking your savings into a 3 month commitment, you should consider both the positive and negative points that this type of savings plan has to offer.

Pros

  • Competitive fixed interest rate. A 3 month term deposit should allow your money to grow at a rate that is slightly higher than a standard savings account interest rate.
  • Incentive to save. If you have a big expense in the near future the penalty for early withdrawal is a good incentive to leave the money alone until the term expires.
  • No account keeping fees. There are no account keeping fees when you save using a 3 month term deposit.

Cons

  • Minimum balance. Banks will typically have a minimum balance requirement. This varies from bank to bank making it an important feature to research first.
  • Interest paid at maturity. Unlike longer term deposits over 12 months in length, a 3 month term deposit will typically not pay you any interest until the account matures.

More questions about term deposits

You may also be interested in

Savings Account Offers

Important Information*
RaboDirect High Interest Savings Account

Maximum Variable Rate

3.05

Standard Variable Rate

1.80
ME Online Savings Account

Maximum Variable Rate

2.85

Standard Variable Rate

1.30
Citibank Online Saver

Maximum Variable Rate

3.05

Standard Variable Rate

1.70
AMP Saver Account

Maximum Variable Rate

2.55

Standard Variable Rate

2.10

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4 Responses

  1. Default Gravatar
    July 11, 2018

    Could I have your expertise please with $950000.00, I was getting 2.5% with Westpac which is about to mature? Thanks.

    • finder Customer Care
      JhezelynJuly 16, 2018Staff

      Hello Shazza,

      Thank you for your comment.

      I understand that your term deposit is about to mature. When it reaches maturity, that’s the time that you can access the funds you initially invested as well as any interest that has been paid into the account.

      There are several possible steps you can take when a term deposit reaches maturity. You can:
      – Take no action
      – Choose a new term deposit
      – Increase your investment
      – Withdraw some and invest the rest
      – Spend it or invest it elsewhere

      The above details are explained on this page for reference. I hope this helps.

      Regards,
      Jhezelyn

  2. Default Gravatar
    DamoNovember 10, 2016

    where is the best place to invest 100000k for 3 months

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