Bank term deposits guide
So you’ve decided a term deposit is the best place for that nice Christmas bonus, or the nest egg you’ve been working on, but now the question is, where do you go to get one? The answer might seem easy - the bank, of course - but there are heaps of options when it comes to choosing where you want to open a term deposit.
We’ve broken down the details of some of the major providers to help you decide which is the best bet for you.
Who offers term deposits?
From major banks to small, online outfits, most financial institutions offer term deposit products these days. Here are the main categories they fall into and what each one brings to the table.
Major banks
This includes the big 4 players, plus others like AMP Bank, Macquarie Bank and Adelaide Bank.
Generally speaking, major bank term deposit interest rates are not as good as those you can find elsewhere. But if you’re someone who likes to do your banking face-to-face, major banks are the ones most likely to offer convenient branch access.
Credit unions and mutual banks
These are smaller institutions, which are usually not-for-profit and owned by their members.
Credit unions and mutual bank term deposits generally come with better interest rates attached than the big banks, but on the other hand, you’ll need to become a member to bank with them, and more than likely have to pay a membership fee.
They’re also often locally based, so if branch access is important to you, check that your chosen credit union or mutual bank is conveniently located for you.
Online banks
More and more people are turning to their computer for banking solutions these days. If you opt for an online bank term deposit, the good news is that you’ll have the pick of some of the best rates on the market. This is because with no branches, online banks have few overhead costs and can pass the savings on to you in the form of competitive interest rates.
For example, Judo Bank offers some of the highest rates in our database.
The downside is that there’s no option to do your banking in person, so only choose an online term deposit if you’re happy managing your money online or over the phone.
What term deposit offers are available from the banks?
Heaps! So many that we can’t cover them all here. But to give you a snapshot of what’s available from some of the major banks in Australia. For instance the average term deposit rate from the Big Four is lower than average from our database.
Big 4 Term Deposit Averages
Term Length | Average interest rate |
1 year | 0.32% p.a. |
2 years | 0.40% p.a. |
3 years | 0.55% p.a. |
4 years | 0.62% p.a. |
5 years | 0.67% p.a. |
*Averages are correct as of 17 May 2022.
Mozo Database Averages
Term Length | Average interest rate |
1 year | 0.94% p.a. |
2 years | 1.22% p.a. |
3 years | 1.25% p.a. |
4 years | 1.37% p.a. |
5 years | 1.38% p.a. |
*Averages are correct as of 17 May 2022.
Find the best term deposit
That was just a taste of what’s out there - there are heaps more term deposit deals available. If you want to compare a range of term deposit offers from other providers, check out our term deposits comparison page.
*The information in this guide was correct at the time of writing, but is subject to change. Please click through to the provider’s term deposits page for updated information.
**Not all interest payment options apply to all terms.
Term Deposit Comparison Table - last updated 22 May 2024
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Featured Product
Term Deposit
5.25% p.a.
6 months$1,000
Yes up to $250,000
Great rates and incentives incl. 0.10% added loyalty bonus at renewal. Option to have interest paid to another bank. Winner of the Mozo Experts Choice Awards 2024^ for Term Deposits.
CompareCompareTerm Deposit
Great rates and incentives incl. 0.10% added loyalty bonus at renewal. Option to have interest paid to another bank. Winner of the Mozo Experts Choice Awards 2024^ for Term Deposits.
- interest rate
- 5.25% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Judo Bank Term Deposit
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Mozo experts choice awards won:
- Term Deposit - 2024
Term Deposit
5.00% p.a.
1 year$1,000
Yes up to $250,000
Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)
CompareCompareTerm Deposit
Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)
- interest rate
- 5.00% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- no
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Rabobank Term Deposit
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Online Term Deposit
3.50% p.a.
7 months$5,000
Yes up to $250,000
No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.
CompareCompareOnline Term Deposit
No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.
- interest rate
- 5.00% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $5,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the MyState Bank Online Term Deposit
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Term Deposit
5.25% p.a.
6 months$1,000
Yes up to $250,000
Looking for returns that return? Invest as little as $1,000 or as much as $1,000,000. Apply online today in as little as 5 minutes. Protected by the Australian Government’s Financial Claims Scheme up to $250,000.
CompareCompareTerm Deposit
Looking for returns that return? Invest as little as $1,000 or as much as $1,000,000. Apply online today in as little as 5 minutes. Protected by the Australian Government’s Financial Claims Scheme up to $250,000.
- interest rate
- 5.25% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $1,000,000.00
- Can interest be paid to another bank?
- no
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Bank of Sydney Term Deposit
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SMSF Term Deposit
5.25% p.a.
6 months$1,000
Yes up to $250,000
Apply digitally in minutes and manage your SMSF Term Deposit. Flexible cash flow management with three interest payment frequencies that suit you: monthly, yearly, or at maturity. Choose from terms of 3 months up to 5 years. No application or monthly account fees but eligibility criteria and terms and conditions apply. Only accessible to SMSFs with two or up to four individual trustees or one corporate trustee.
CompareCompareSMSF Term Deposit
Apply digitally in minutes and manage your SMSF Term Deposit. Flexible cash flow management with three interest payment frequencies that suit you: monthly, yearly, or at maturity. Choose from terms of 3 months up to 5 years. No application or monthly account fees but eligibility criteria and terms and conditions apply. Only accessible to SMSFs with two or up to four individual trustees or one corporate trustee.
- interest rate
- 5.25% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Your selected term deposits
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* Different interest rates apply to different amounts or different interest payment frequencies.
^See information about the Mozo Experts Choice Term Deposit Awards
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