Alex.Bank term deposit with Qantas Points: Is it worth it? My expert take
Key takeaways
- The Alex.Bank term deposit offers 100 Qantas Points per $1,000 deposited.
- While the rates are competitive, you can earn more interest with other term deposits.
- What's next: Term deposit rates may rise when the Reserve Bank next meets in June.
Here's an unusual way to earn Qantas Points towards your next free flight: a term deposit from Alex.Bank.
It's the only fixed-rate term deposit currently on the market which earns Qantas Points. Term deposits have soared in popularity with rising interest rates, so how does this one stack up?
How many Qantas Points can you earn with the Alex.Bank term deposit?
With the Alex.Bank term deposit, you earn 100 Qantas Points per $1,000 deposited. The minimum amount to be eligible is $10,000, which would earn 1,000 Qantas Points.
The maximum size of the term deposit is $250,000, which would earn 25,000 Qantas Points. Qantas says the points will be credited within 30 days of opening the term deposit. (You have to apply via the Qantas site to be eligible.)
How does the Alex.Bank term deposit compare?
Extra points are welcome, but the most important feature of a term deposit is the annual interest rate. Here's what Alex.Bank pays, including an example of how much interest you'd earn on $10,000 over each term. (This calculation assumes all interest is added into the term deposit.)
| Term | Rate | Interest paid | Total at term |
|---|---|---|---|
| 9 months | 4.75% | At maturity | $10,356.25 |
| 12 months | 5.15% | Monthly | $10,515.00 |
| 12 months | 5.25% | Annually | $10,525.00 |
| 18 months | 4.70% | Monthly | $10,705.00 |
| 18 months | 4.80% | Annually | $10,720.00 |
| 24 months | 4.70% | Monthly | $10,940.00 |
| 24 months | 4.80% | Annually | $10,960.00 |
| 36 months | 4.70% | Monthly | $11,410.00 |
| 36 months | 4.80% | Annually | $11,440.00 |
| 48 months | 4.70% | Monthly | $11,880.00 |
| 48 months | 4.80% | Annually | $11,920.00 |
| 60 months | 4.70% | Monthly | $12,350.00 |
| 60 months | 4.80% | Annually | $12,400.00 |
For a 12-month term deposit, 5.25% is competitive, but it's not the highest rate on the market. There are several term deposits out there with rates of 5.40%.
Want higher interest for your term deposit?
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So the key question becomes: how much extra are the Qantas Points you get worth? In our $10,000 example, you'd earn 1,000 Qantas Points.
Using our standard valuation of 2 cents per Qantas Point, those points are worth $20. That's a nice gain, but it's minor compared to the interest you'll earn.
If you ultimately use your Qantas Points for a higher-value reward such as an upgrade to Business, you'll definitely be ahead. If you spend them on a coffee machine, you'd have been better off with the higher interest rate. For a typical domestic reward flight, you'd likely break even.
Bottom line? I wouldn't be looking at a term deposit purely for earning Qantas Points. But if you do want to consider a term deposit in order to get a guaranteed interest rate in a secure environment, it's a factor to weigh up.
Once you have a term deposit, the rates are locked in. The Reserve Bank's next rates meeting is on 16 June 2026, and if there's another rate rise the value equation may change again.
We updated this guide on 25 May 2026 with current interest rates.
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