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Compare 6 month term deposits

A 6 month term deposit is more suited for short-to-medium term investments.

A term deposit is a savings account product that holds your money for a set amount of time, rewarding you with a fixed interest rate. If you apply for a six-month term deposit, your savings will be locked away for six months with a competitive fixed interest rate. A six-month term deposit is a great way to save money, as you can't access it and spend it on impulse purchases.

Learn more about how six-month term deposits work, the advantages of a six-month term deposit and compare some of the best term deposit rates for six months in Australia in this guide.

Term Deposit Offer

Citibank Term Deposit

2.75 % p.a.

fixed for 6 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 6 month term deposit rates

Rates last updated December 17th, 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%
-
2.75%
2.45%
-
-
$100,000
ME Term Deposit
2.60%
2.60%
2.80%
2.80%
2.85%
3.00%
$1,000
Firstmac Term Deposit
2.55%
-
2.75%
2.65%
2.75%
-
$5,000
RACQ Bank Term Deposit
2.35%
2.35%
2.60%
2.70%
2.80%
3.00%
$1,000
AMP Term Deposit $25,000+
2.50%
2.40%
2.75%
2.75%
2.75%
2.85%
$25,000
AMP Term Deposit $100,000+
2.50%
2.40%
2.75%
2.75%
2.75%
2.85%
$100,000
AMP Term Deposit $5000+
2.30%
2.20%
2.55%
2.55%
2.55%
2.65%
$5,000

Compare up to 4 providers

How do I choose a 6 month term deposit?

Jump to our comparison tool above and enter the amount you wish to invest into your term deposit. Usually the more money you deposit the better the interest rate will be. If you don't want a six-month term deposit, enter 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 "Go to site".

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

Product 6 months p.a.
UBank Term Deposit2.75% p.a.
RaboDirect Term Deposit2.50% p.a.
St.George Term Deposit2.10% p.a.
BoM Term Deposit2.10% p.a.
Suncorp Term Deposit2.35% p.a.
Citibank Term Deposit2.75% p.a.

How does a 6 month term deposit work?

If you open a six-month term deposit, you'll be tucking away your savings for half a year. Term deposits often offer a better interest rate than bank accounts and savings accounts as a reward for locking your money away. Remember, there are penalties for accessing your term deposit early so you need to make sure you won't need the money for a while.

Can I access my term deposit early?

There are 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. By imposing the 31-day notice rule, banks would be able to hold onto the funds until they could find new sources of capital. After the global financial crisis (GFC), many financial markets realised that banks did not have enough capital reserved 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 occur.

Interest payments for 6 month term deposits

Most six-month term deposits will pay your interest once the term matures – that is, after the six months have ended. In some cases you can have the interest paid on a monthly basis. However, this is more common with term deposits greater than 12 months in length.

You can select which bank account you'd like to receive you interest payments into. Some term deposits allow you to have interest paid into any Australian bank account, while others will require the interest to be paid into an account with the same financial institution.

How do I compare 6 month term deposits?

There's a number of factors to consider when comparing which six-month term deposit is right for you. Here are the main points to keep in mind:

The interest rate

Look for a competitive interest rate. Rates for six-month term deposits vary between banks, so make sure to compare options before you decide.

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. If you're looking to receive monthly interest payments, consider 12 month term deposits instead.

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

It's unusual to be charged account keeping or establishment fees on your six-month term deposit, so be sure to do your research and avoid paying unnecessary fees.

What are the pros and cons of a term deposit?

There are both advantages and disadvantages to six-month term deposits:

The benefits

  • Fixed interest rate. Term deposits provide a fixed interest rate, giving you peace of mind. You can work out exactly how much interest you'll earn when the term matures.
  • 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

  • Six-month term deposits pay interest at maturity. This means that six-month term deposits may not be suited to all types of investors. For example, retirees may want a longer-term term deposit.
  • Lack of liquidity. Even if you decided 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 of a 6 month term deposit?

Your term deposit is backed by the Australian Government guarantee scheme for amounts of up to $250,000 per person, per institution. This guarantee protects your deposits in the event of a financial crisis. 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 new six-month term deposit may be at a lower interest rate.
  • 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 admin fee, but the interest already earned may 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 three-month term deposit 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 6 month term deposit and a 12 month?

The interest rates vary from bank to bank and can also differ depending on the amount you deposit. With some banks the difference is a mere fraction such as an increase of 0.05% p.a, while with others it is a more significant 0.35% p.a. increase.

Is there an age restriction for who can open a 6 month term deposit?

Banks will apply their own restrictions depending on how their accounts are structured. Some banks enable Australians aged only 12 years old to open a six-month term deposit.

What do I need to open a 6 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.

You may also be interested in

Savings Account Offers

Important Information*
ING Savings Maximiser

Maximum Variable Rate

2.80

Standard Variable Rate

1.00
AMP Saver Account

Maximum Variable Rate

2.55

Standard Variable Rate

2.10
Bankwest Hero Saver

Maximum Variable Rate

2.60

Standard Variable Rate

0.01
HSBC Serious Saver

Maximum Variable Rate

3.10

Standard Variable Rate

1.40

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20 Responses

  1. Default Gravatar
    AndrewOctober 8, 2018

    What sort of financial crisis is covered by the Gov’t guarantee? Does this include malpractice or fraud ?

    • finder Customer Care
      JhezelynOctober 10, 2018Staff

      Hello Andrew,

      Thank you for your comment.

      The Government Scheme protects mainly the financial institution. Regarding malpractice or fraud, if you experienced this, please get in touch with your bank right away so they can investigate it for you.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  2. Default Gravatar
    IreneJuly 30, 2018

    I have a term deposit of $210000 maturing soon. What is the best 5or 6 month rate.

    • finder Customer Care
      NikkiJuly 30, 2018Staff

      Hi Irene!

      Thanks for leaving a comment on our page.

      It looks like you’re on the page that is relevant to your inquiry. Choosing the best term deposit account for you can be challenging.
      To better help you with your decision, you may read up the information above that says “How do I compare 6-month term deposits?” and “What are the pros and cons of a term deposit?”

      You can also utilize our term deposit calculator to determine how much interest you will earn, or how much you need to deposit in order to reach your earning goal.

      Hope this helps. For any further questions, please don’t hesitate to send us an inquiry again.

      Cheers,
      Nikki

  3. Default Gravatar
    murrayApril 5, 2018

    I want to lock 100k into a term deposit for 12 months where can I get the best deal my location is WA some banks do not operate in this state so any help would be appreciated. Thank you.

    • finder Customer Care
      JhezelynApril 6, 2018Staff

      Hi Murray,

      Thank you for your comment.

      You might want to check this page to compare 12-month term deposit accounts. I have confirmed that ME Bank and St.George have branches in WA.

      Based on the our page, the highest interest for a 12-month term is with ME Term Deposit. Click Go to Site to apply. I hope this helps.

      Regards,
      Jhezelyn

  4. Default Gravatar
    IanMarch 14, 2018

    Have $1.35 million to invest term deposit interest paid quarterly

    • finder Customer Care
      JeniMarch 14, 2018Staff

      Hi Ian,
      Thanks for getting in touch with finder. While we are not allowed to provide specific recommendations/quotes, let me give you general information to help you make a better choice. You can refer to this link for your reference https://www.finder.com.au/term-deposits.
      Interest payment options are monthly, quarterly, annually or at maturity.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
      Have a wonderful day!
      Cheers,
      Jeni

  5. 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

  6. 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

  7. 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

  8. Default Gravatar
    wallyMay 22, 2017

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

    • Default Gravatar
      LiezlMay 23, 2017

      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

  9. Default Gravatar
    JJApril 25, 2017

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

    • Default Gravatar
      LiezlApril 26, 2017

      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

  10. Default Gravatar
    TonyNovember 1, 2016

    Which is a better investment strategy:

    Invest in term deposit for 6 months or 1 year?

    Thanks.

    • finder Customer Care
      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

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