How are term deposits rates doing in March?

By Cameron Thomson · · 3 min read
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In bad news for savers, March term deposit rates in the 5% range are no longer as common for longer terms. This trend has accelerated following the RBA's recent decision to reduce the cash rate to 4.10% (down 25 basis points), which is now feeding through to deposit products. 

Generally speaking, rates on terms at 1 year or under look better at present. This can work if you're happy to lock your cash up for just a short while.

For context, inflation pressures remain so we can’t expect that the central bank will keep cutting rates and, in turn, drive down term deposit rates further. Currently, the ABS stats from the end of last month show the monthly CPI indicator rose 2.5% in the 12 months to January. 

More concerning for the RBA though, the annual movement for the monthly CPI indicator excluding volatile items and holiday travel was 2.9% in January, up from 2.7% in December.

How term deposits are tracking

For much of last year, Judo Bank led the way by offering the best rates across most terms. But as of March 2025, no one provider is offering leading rates across all terms. Currently, Judo Bank is tied with Heartland Bank for terms between 2 and 5 years.

At the moment, most providers are probably anticipating further RBA rate cuts this year, so the focus remains on shorter rates. However, as potential rate cuts loom, these short term rates may also be revised down further. Keep an eye on this.

**Top Term Deposit leaders

  • Rabobank - Highest 4-5 year rates
  • Heartland bank - Highest 2-3 year rates
Judo Bank
Rabobank
Term Length
Interest Rate  (p.a.)
Term Length
Interest Rate  (p.a.)
1-year term
4.50%
1-year term
4.45%
2-year term
4.70%
2-year term
4.20%
3-year term
4.60% 
3-year term
4.30% 
4-year term
4.50%
4-year term
4.60%
5-year term
4.50%
5-year term
4.70%
Minimum deposit: $1,000
Minimum deposit: $1,000

MOVE Bank - Highest 7 month term rates 

Term Length
Interest Rate (p.a.)
3 month
4.85%
4 month
4.80%
5 month
5.00%
6 month
4.80%
7 month
4.80%
Minimum deposit: 5,000

Term Deposit FAQs

What is a term deposit?

A term deposit is a low-risk investment option offered by many banks, mutual banks and credit unions. The deposit lets you earn interest on a large sum of money at a fixed rate for a specified period of time. That can be anywhere from one month to five years. After you put money in a term deposit you can choose how to have your interest paid: monthly or at maturity.

What are some of the best term deposits?

You’re in luck! Every year we announce the Mozo Expert Choice Awards^ where we crown the best of the best as winners. Some of the banks with the highest rates above have actually won awards for best term deposits.

Do I pay tax on the interest earned from my term deposit?

Yes, any interest earned is considered income and you’ll need to include this on your tax return for the financial year in which it was paid.

What’s the difference between a savings account and a term deposit?

Term deposits have fixed interest rates so you’ll always know how much you’ll earn over the determined term period, but the trade off is that to earn that interest you won't be able to access that money (without penalty). On the other hand, savings accounts have variable interest rates which can be changed by your bank (up or down) at any time and you’ll also have easier access to your money.

Compare term deposits

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 93 term deposits.
Last updated 9 March 2025 Important disclosures
  • Mozo Expert Choice Badge
    Term Deposit

    4.85% 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.

    Compare
    Go to site
    Details
  • Term Deposit

    4.50% p.a.
    9 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.

    Compare
    Find out more
    Details
  • Term Deposit

    4.85% p.a.
    6 months

    $5,000

    Yes up to $250,000

    No set-up or account keeping fees. Australian customer team. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Minimum deposit $5,000. Interest paid at maturity.

    Compare
    Go to site
    Details
  • Mozo Expert Choice Badge
    Term Deposit

    4.85% p.a.
    3 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.

    Compare
    Go to site
    Details
  • Online Term Deposit

    4.85% p.a.
    6 months

    $5,000

    Yes up to $250,000

    No set-up or account keeping fees. Australian customer team. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Minimum deposit $5,000. Interest paid at maturity.

    Compare
    Go to site
    Details

* 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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Today's term deposit rates