savings-account-feature-image-250-optmz

Compare 6 Month Term Deposits

A six month term deposit is more suited for short-to-medium term investments.

A term deposit is a saving account product that holds your money for a set amount of time, rewarding you with a fixed interest rate. If you apply for a 6 month term deposit, your savings will be locked for 6 months with a competitive interest rate.

If you wish to access your term deposit before the 6 months has finished, you are usually charged a penalty. This could defeat the purpose of investing in a term deposit from the start.

Term Deposit Offer

Bankwest Online Term Deposit

2.50 % p.a.

fixed for 6 months

Term Deposit Offer

Competitive interest rates with a wide range of terms and rates to choose from.

  • Minimum investment: $1,000.00
  • Monthly fees: $0.00
  • Interest payment options: monthly, quarterly, bi-annually, annually or at maturity
Go to site

Compare 6 month term deposits below

Rates last updated November 21st, 2017
$
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. 48 Mths p.a. 60 Mths p.a. Min Deposit Interest Earned
Bankwest Online Term Deposit
2.35%
1.50%
2.50%
2.65%
2.60%
2.60%
2.65%
2.65%
$1,000
St.George Term Deposit
2.05%
1.85%
2.15%
2.45%
2.50%
2.60%
2.70%
2.80%
$1,000
Citibank Term Deposit
-
-
2.70%
-
-
-
-
-
$250,000
Citibank Wholesale Investor Term Deposit
-
-
3.00%
-
-
-
-
-
$250,000
BankSA Term Deposit
2.05%
1.85%
2.15%
2.45%
2.50%
2.60%
2.70%
2.80%
$1,000
Bank of Melbourne Term Deposit
2.05%
1.85%
2.15%
2.45%
2.50%
2.60%
2.70%
2.80%
$1,000
Westpac Term Deposit
2.00%
1.85%
2.05%
2.30%
2.40%
2.50%
2.60%
2.80%
$5,000

Compare up to 4 providers

How do I choose a term deposit on your site?

Jump to our comparison tool and enter in the amount you wish to invest into your term deposit. Indicate the number of months you want to invest for and click "calculate". Our tool will automatically calculate the interest you can earn as a general indication. If you wish to apply or to find out more, click on "Open".

finder.com.au's featured 6 month term deposits

Product 6 Months p.a.
UBank Term Deposit2.64% p.a.
RaboDirect Term Deposit2.50% p.a.
St.George Term Deposit2.15% p.a.
BoM Term Deposit2.15% p.a.
Suncorp Term Deposit2.30% p.a.
Citibank Term Deposit ($75k)

You may also be interested in

How does a 6 month term deposit work?

If you choose to apply for a 6 month deposit, you'll be tucking away your savings for half a year. Remember, there are penalties for accessing your term deposit early so you need to make sure you won't need the funds for a while.

There are also new regulations in place that restrict your ability to access your term deposit early. In most cases, if you need to access the funds before your term deposit reaches maturity, a 31 day notice period applies.

In some cases, you can have the interest paid on a monthly basis. This tends to be more common amongst term deposits that have a maturity term greater than 12 months.

Case study: Jamie invests in a 6 month term deposit

Jamie invests in a new term deposit in January which means it's due to mature in July. However, it is now March and he's come across an emergency and needs to access the funds now. He notifies his bank that he needs to access the funds, but the new restrictions in place will mean he can't access the funds until April.

He is also charged a penalty for accessing his funds early.

Why were these restrictions imposed?

After the Global Financial Crisis (GFC) many financial markets realised that banks did not have enough capital reserves to survive another economic crisis. Australia isn't the only country that's affected; many economies around the world have implemented new rules to ensure banks have enough reserves in case another crisis were to come.

By imposing the 31 day notice rule, banks would be able to hold onto the funds until they could find new sources for reserves.

How do I compare 6 month term deposits?

The amount of interest you will receive

This is very important if your goal is to build on your savings while it is in a term deposit account. Competitive rates are going to be different depending on which financial institution you are looking at.

How often the interest is paid

With short-term deposits like the six month term deposit, the interest earned on the balance is not likely to be deposited into the account until it reaches maturity. However, retirees may be looking for a longer-term term deposit so take advantage of monthly interest payments.

The minimum amount required for investment

You will need to check the minimum balance requirements of various banks, as some will allow for $1,000 deposits while others require a minimum investment amount of $5,000.

No fees

Many financial institutions charge no fees on their term deposit accounts. It's unusual to be charged account keeping or establishment fees on your 6 month term deposit, so be sure to do your research and avoid paying unnecessary fees.

What are the benefits and drawbacks of a term deposit?

There are both pros and cons to 6 month term deposits that ought to be weighed up before making the final decision to invest your savings into one:

The benefits

  • Fixed interest rate. Term deposits provide a fixed interest rate giving you peace of mind. In a low or uncertain interest rate environment, having this peace of mind can be emotionally rewarding.
  • It encourages forced savings. With penalties for any early withdrawals, this type of account provides you with an incentive to keep your money where it is until the goal is met.

The drawbacks

  • 6 month term deposits only give you interest at maturity. This means that 6 month term deposits may not be suited to all types of investors. For examples, retirees may want a longer-term term deposit.
  • Lack of liquidity. Even if you decided, in the event of an emergency, to pay the penalty and make an early withdrawal, you may have to provide notice to your financial institution, meaning it could be 31 days before you get your deposit back.

What are the risks?

Your term deposit is backed by the Australian Government guarantee scheme for amounts of up to $250,000 per person, per institution. This guarantee only protects your deposits in the event of a Financial Crisis and does not protect you if you wish to access your funds early. You should also look out for the following:

  • The terms and conditions when rolling your term deposit over. In most cases the account will simply roll over with the same set of terms if you do not inform the financial institution of your intent. If the Reserve Bank of Australia (RBA) has made interest rate adjustments due to inflation, your 6 month term deposit may no longer be a worthwhile investment.
  • Have a back-up for emergency funds. The penalty fee is applied when you ask for the deposit back before the end of the term. Not only will you be charged an administrative fee, but the interest already earned will be adjusted to match that of a term deposit with a shorter term.

With term deposits for six months you need to think about when you will need to access the money. Consider a shorter term if you don’t think you can make it the full six months or a longer one with a higher interest rate if you can go without your savings for an extended period of time.

Did you have these questions about term deposits?

How much of a difference in interest is there between a six month term deposit and a twelve month?

The interest rates vary from bank to bank and can also differ depending on the amount of your savings investment. With some banks the difference is a mere fraction such as an increase of 0.05% per annum (p.a.) while with others it is more a more significant 0.35% p.a. increase.

Is there an age restriction for who can open a six month term deposit?

Banks will impose their own restrictions depending on how their accounts are structured, but you will find that with some, an Australian young person of only 12 years old could open a six months term deposit.

What do I need to open a six month term deposit?

You will need to be able to provide proof of your identity along with the money you plan on depositing into the account when you apply. With some banks you can even apply online and transfer the initial deposit from your transaction account.

Savings Account Offers

Learn about our information service
HSBC Serious Saver

Maximum Variable Rate

3.00

Standard Variable Rate

1.60
Bankwest Hero Saver

Maximum Variable Rate

2.60

Standard Variable Rate

0.01
Bank Australia Bonus Saver Account

Maximum Variable Rate

2.60

Standard Variable Rate

0.15

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.

12 Responses

  1. Default Gravatar
    MJuly 5, 2017

    IF YOU HAVE A LARGE SUM, IS THE GOVERMENT COVERING OVER $250,000 OR UP TO $250,000 AND IS ING DIRECT COVERED?

    • Default Gravatar
      JonathanJuly 6, 2017

      Hi M!

      ING Direct is covered by the Australian Government’s Deposit Guarantee and this is up to $250,000 in Authorised Deposit-taking Institutions (ADIs), not per bank.

      If you have multiple deposit accounts with brands that are owned by the same ADI, the guarantee will only apply to $250,000 of these funds in total. If this concerns you, make sure you know who the ADI is that you bank with.

      Hope this helps.

      Cheers,
      Jonathan

  2. Default Gravatar
    kevinJune 15, 2017

    Are there any fees if you transfer money from one bank to a different bank? If so, how much is it?

    • Default Gravatar
      JonathanJune 15, 2017

      Hi Kevin!

      Thanks for the comment.

      Usually, domestic bank transfer has no fees involved. However, due to some restrictions, it may be best to consult your bank on this matter.

      You can read our guide for steps in transferring money to another Australian bank account.

      Hope this helps.

      Cheers,
      Jonathan

  3. Default Gravatar
    KylieMay 31, 2017

    Could you please advise which bank/financial institution offers the best rate for term deposit/12 monthly or 2 -5 years for investing $37,000?

    • Default Gravatar
      JonathanMay 31, 2017

      Hi Kylie!

      Thanks for the comment.

      You can visit this page to utilize our savings calculator that will help you locate the best rates.

      Hope this helps.

      Cheers,
      Jonathan

  4. Default Gravatar
    wallyMay 22, 2017

    I have $100,000 to invest for 6 months, please advise my best options?

    • Staff
      LiezlMay 23, 2017Staff

      Hi Wally,

      Thanks for your question.

      I’m afraid we are unable to give you financial advice nor recommend a specific company or product. Actually, you’re already on the right page to compare your 6-month term deposit options. You can make use of the table calculator to compute for the interest earned. Then compare the net amount you’re getting after deducting related fees, if there’s any, from the interest earned.

      Please make sure to check the eligibility criteria and documentation required before applying for an account.

      I hope this has helped.

      Cheers,
      Liezl

  5. Default Gravatar
    JJApril 25, 2017

    I want to invest 60000$, where can I get maximum interest?

    • Staff
      LiezlApril 26, 2017Staff

      Hi JJ,

      Thanks for your question.

      Based on the interest table above, Firstmac gives the highest interest at 2.75% p.a. for $60,000 6-month term deposit. It’s good to note, though that 6-month term deposits only give you interest at maturity.

      I hope this has helped.

      Regards,
      Liezl

  6. Default Gravatar
    TonyNovember 1, 2016

    Which is a better investment strategy:

    Invest in term deposit for 6 months or 1 year?

    Thanks.

    • Staff
      JasonNovember 2, 2016Staff

      Hi Tony.

      Thank you for your inquiry.

      It would be wise to make your selection based on the interest rate of that specific length of term deposit. Some term deposit accounts may offer progressing interest rates while others may offer better interest rates for a 6 months term deposit.

      I hope this helps.

      Cheers,
      Jason

Ask a question