How are term deposits rates doing in October?

By Cameron Thomson · · 3 min read
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Recently, term deposit providers have turned away from higher interest rates for longer terms and are instead focusing on shorter term rates. Unfortunately, this also means that rates in the 5% range are no longer really on offer for long term deposits. So, if you’re looking to lock your cash up for a short while, then some of the current term deposit rates could be worth considering.

For much of last year, Judo Bank led the way in offering the best rates across most terms. However, as of October 2024, no one provider is offering leading rates across all terms. 

Most providers are probably predicting that the RBA will cut rates some time next year, so shorter rates are where banks are focusing their attention. However, as we get closer to those rate cuts, it’s likely that these short term rates will also be revised down. So if you're considering locking your cash up for a short period, now might be a good time to explore some of the current rates available.

Let’s look at some short-term options: Family Firsts Special Term Deposit leads with a 5.05% p.a. rate for 12 months while Gateway Bank and Judo Bank lead with a 5.10% p.a. rate for 6 months.

On the longer end, Rabobank currently offers the highest rates for 5 year terms at 4.60% p.a. while Heartland Bank and Rabobank offer the highest 4 year rate at 4.50% p.a. 

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

Judobank - Highest 5 year rates

Term Length
Interest Rate  (p.a.)
1-year term
4.90%
2-year term
4.55%
3-year term
4.40%
4-year term
4.40%
5-year term
4.40%
Minimum deposit: $1,000

Highest 1 year rate

Currently, the highest 1 year term deposit rate is Family Firsts Special Term Deposit at 5.05% p.a. for a 12 month term only and is on offer until to 31 December 2024. G&C and Qudos Bank both tie just 5 basis points behind on 12 month terms.

G&C Bank
Qudos Bank
Term Length
Interest Rate (p.a.)
Term Length
Interest Rate (p.a.)
1-year
5.00% p.a.
3-month
4.85% p.a.
2-year
4.60% p.a.
6-month
5.05% p.a. 
3-year
4.40% p.a.
9-month
4.90% p.a.
4-year
4.00% p.a.
1-Year
5.00% p.a.
5-year
4.00% p.a.
2-Year
4.70% p.a.
Minimum deposit: $1,000
Minimum deposit: $1,000

Heartland Bank - Highest 2 year term rates 

Term Length
Interest Rate (p.a.)
1-year term
4.90%
2-year term
4.70%
3-year term
4.50%
4-year term
4.50%
5-year term
4.50%
Minimum deposit: $25,000

To learn more about term deposits check out Mozo’s tips and guide page.

**Top refers to the leading rate on the Mozo database

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 the products below. We don’t compare the entire market, but you can search our database of 101 term deposits.
Last updated 16 October 2024 Important disclosures
  • Term Deposit

    4.90% p.a.
    6 months

    $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)

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    Details
  • Standard Term Deposit

    4.00% p.a.
    5 months

    $1,000

    Yes up to $250,000

    Invest from as little as $1000. No monthly fees. Interest is paid at maturity. Range of terms available from 1 month to 3 years. Manage via online banking or via app.

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    Details
  • Term Deposit

    4.95% p.a.
    6 months

    $10,000

    Yes up to $250,000

    Minimum $10,000 deposit. No account keeping fees. Terms from 3 months up to 2 years. Interest can be paid into a different bank. Balances up to $250,000 are guaranteed by the Australian Government. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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    Details
  • Term Deposit

    5.15% 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
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    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