How are term deposits rates doing in January ?

By Cameron Thomson · · 3 min read
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In bad news for savers, term deposit rates in the 5% range are no longer as common for longer terms. 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 much of last year, Judo Bank led the way by offering the best rates across most terms. But as of January 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 predicting that the RBA will cut rates sometime this year, so the focus remains on shorter rates. However, as potential rate cuts loom closer, these short term rates may also be revised down further. Keep an eye on this.

For now, let’s look at some short-term options: Heartland Bank's Term Deposit leads with a 5.10% p.a. rate for 12 months while Goldfields money leads 3 month terms at a 4.85% p.a. rate.

On the longer end, Judo Bank and Heartland offer rates of 4.45% p.a. for 5 and 4 year terms. The 3 year term sits at 4.60% p.a. and 2 year terms at a 4.70% p.a. rate. 

Below we’ve kept track of the top three financial institutions offering some of the highest interest rates found in the Mozo database. 

**Top Term Deposit leaders

  • Judo Bank - Highest 2-5 year rates
  • Heartland bank - Highest 1-5 year rates
Judo Bank
Heartland Bank
Term Length
Interest Rate  (p.a.)
Term Length
Interest Rate  (p.a.)
1-year term
5.00%
1-year term
5.10%
2-year term
4.70%
2-year term
4.70%
3-year term
4.60% 
3-year term
4.60% 
4-year term
4.45%
4-year term
4.45%
5-year term
4.45%
5-year term
4.45%
Minimum deposit: $1,000
Minimum deposit: $25,000

AMP Bank - Highest 10 month rate

Currently, the highest 10 month term deposit rate is AMP Bank's Term Deposit at 4.90% p.a. for a 12 month term.

AMP Bank
Term Length
Interest Rate (p.a.)
8 month term
4.70%
9 month term
5.10%
10 month term
4.90%
11 month term
4.60%
1 year term
5.00%
Minimum deposit: $5,000

MOVE Bank - Highest 7 month term rates 

Term Length
Interest Rate (p.a.)
3 month
4.80%
4 month
4.80%
5 month
4.80%
6 month
4.80%
7 month
4.95%
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 91 term deposits.
Last updated 16 January 2025 Important disclosures
  • Mozo Expert Choice Badge
    Term Deposit

    5.00% 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

    4.90% p.a.
    4 months

    $5,000

    Yes up to $250,000

    Grow your hard-earned savings with a P&N Bank Money Maker Term Deposit. Enjoy competitive, guaranteed fixed term rates. Interest paid at maturity for terms between 2 and 12 months. Interest rates may vary depending on the terms you select. Minimum amount of $5,000. Maximum amount of $1 million.

    Compare
    Find out more
    Details
  • Term Deposit

    4.00% p.a.
    6 months

    $5,000

    Yes up to $250,000

    Compare
    Find out more
    Details
  • Mozo Expert Choice Badge
    Term Deposit

    5.15% p.a.
    9 months

    $25,000

    Yes up to $250,000

    Enjoy flexible terms starting from 31 days up to 5 years with a Heartland Bank Term Deposit. Get your interest paid monthly (on selected terms). Your savings are protected by the Government guarantee. Minimum deposit amount of $25,000 up to $1,000,000.

    Compare
    Find out more
    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