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Rates and other product information are updated daily. Our term deposit interest rate comparison is based on products analysed by Money from banks covered by the Government’s Financial Claims Scheme. By default the table is sorted by highest interest rate, then provider name alphabetically. Check with the provider for full current account details, including rates, fees, eligibility and terms and conditions – and seek financial advice if necessary – to ensure the product is right for you. While this is an extensive list of the highest term deposit rates based on monthly interest payment available in Australia, we don’t guarantee that all products in the market are shown.

Best Term Deposit Rates in Australia (1 Month

See the highest term deposit rates currently available based on the deposit amount, duration and interest payment frequency that suit.

Rates updated 19 December 2024

Deposit amount

Duration

Interest Frequency

Available to all

Term duration	Highest rate with interest paid at maturity	Highest rate with interest paid monthly
3 months	4.95% p.a. from Judo Bank, Macquarie Bank or Heartland Bank	4.85% p.a. from Judo Bank of BCU Bank
4 months	4.90% p.a. from BCU Bank, P&N Bank or Woolworths Team Bank	4.80% p.a. from BCU Bank or Teachers Mutual Bank
5 months	5.20% p.a. from Credit Union SA	4.80% p.a. from Teachers Mutual Bank
6 months	5.10% p.a. Bank of Sydney or ING	4.95% p.a. from Judo Bank or Qudos Bank
9 months	5.15% p.a. from Heartland Bank	4.95% p.a. from Judo Bank or Police Bank
12 months	5.10% p.a. from Heartland Bank	4.95% p.a. from Heartland Bank
2 years	4.70% p.a. from Judo Bank or Qudos Bank	4.70% p.a. from Qudos Bank
3 years	4.60% p.a. from Judo Bank	4.50% p.a. from Judo Bank or Qudos Bank
4 years	4.45% p.a. from Judo Bank	4.35% p.a. from Judo Bank
5 years	4.45% p.a. from Judo Bank	4.35% p.a. from Judo Bank

Term duration

Highest rate with interest paid at maturity

Highest rate with interest paid monthly

3 months

4.95% p.a. from Judo Bank, Macquarie Bank or Heartland Bank

4.85% p.a. from Judo Bank of BCU Bank

4 months

4.90% p.a. from BCU Bank, P&N Bank or Woolworths Team Bank

4.80% p.a. from BCU Bank or Teachers Mutual Bank

5 months

5.20% p.a. from Credit Union SA

4.80% p.a. from Teachers Mutual Bank

6 months

5.10% p.a. Bank of Sydney or ING

4.95% p.a. from Judo Bank or Qudos Bank

9 months

5.15% p.a. from Heartland Bank

4.95% p.a. from Judo Bank or Police Bank

12 months

5.10% p.a. from Heartland Bank

4.95% p.a. from Heartland Bank

2 years

4.70% p.a. from Judo Bank or Qudos Bank

4.70% p.a. from Qudos Bank

3 years

4.60% p.a. from Judo Bank

4.50% p.a. from Judo Bank or Qudos Bank

4 years

4.45% p.a. from Judo Bank

4.35% p.a. from Judo Bank

5 years

4.45% p.a. from Judo Bank

4.35% p.a. from Judo Bank

Term deposits are a pretty straightforward product, but virtually every bank in Australia offers one. Here are some factors to consider when comparing your many options.

Interest rate

The interest rate on a term deposit dictates what return you’ll get from your money. A lot of people simply prioritise finding the highest rate available, but there can be situations where a term deposit with a lower rate could be more suitable, based on other factors explained here.

The term

The interest rate you earn on a term deposit can vary massively based on the term duration – even on accounts from the same provider. Remember, you won’t be able to access the money in a term deposit during the term (without penalties applying) so choosing a suitable term is key.

Interest payment frequency

For some savers, how often you receive interest payments is particularly important. An example could be if you will rely on the interest payments as income for day-to-day living. Just bear in mind that term deposits paying interest more frequently often have a reduced interest rate.

Min and max deposit

Check how much the provider actually allows you to deposit, and whether the top interest rate only applies to deposits above a certain amount. Where there is a maximum deposit amount, check if that applies per customer or per account. You may be able to spread funds across multiple term deposit accounts.

Rules (and penalties) for early withdrawal

Ideally you will choose a term that matches your plans for the money deposited, but it’s worth checking what happens (and what it will cost you) if you need to withdraw the money early for any reason. A reduced interest rate and/or fees usually apply.

Authorised deposit-taking institutions

Make sure the term deposit you choose is offered by an authorised deposit-taking institution (ADI). Only deposits with these providers (up to $250k per customer per provider) are guaranteed by the Australian Government’s Financial Claim Scheme.

Reinvestment options

Some term deposits allow you to build on your savings by reinvesting the interest earned. Also consider what happens when the term ends and what options the provider offers. Some banks offer a loyalty bonus if you roll your deposit over into a new term.

Get advice if you’re unsure

Term deposits are generally considered to be lower risk than other investments, but you may still benefit from getting financial advice before deciding if investing in a term deposit is the right approach for you and which type of account will be best.

Term deposit versus savings account

Term deposit

Fixed interest rate
Options of fixed interest terms between between 1 month - 5 years
Penalties apply if you withdraw your money before the end of the term

High interest savings account

Variable interest rate
No set time frame on the account and you can top up your savings
You can withdraw your money at any time

You can usually open a new term deposit account online through the provider’s website. This should only take a few minutes, assuming you’re eligible and have your ID handy.

To open a term deposit, you’ll generally need to:

Be an Australian resident with an Australian postal address.

Be 18 years of age or older.

Provide information from your identity documents to prove your identity (Australian Passport, driver's licence, Medicare or Centrelink Card).

Provide a tax file number if you don’t want the bank to withhold tax on interest paid.

Term deposit FAQ

How do term deposits work?

A term deposit is a savings product offered by most banks in Australia that pays a fixed rate of interest on money deposited for a set period of time.

During the term, savers cannot withdraw money from their term deposit without penalties applying (fees or interest deductions).

When is interest paid on a term deposit?

There are usually a few different options for when interest is paid on a term deposit:

Monthly

Quarterly (every three months)

Semi-annually (every six months)

Annually

At maturity (at the end of the term)

For shorter terms (1-12 months) some providers only pay interest at the end of the term. Choosing to receive interest payments more frequently usually means you’ll be paid a lower rate of interest.

What happens if I need to access the money before the end of the term?

Most term deposit providers require a month’s notice is a customer needs to withdraw funds early. There may be exceptions for customers who need to access money because they are experiencing financial difficulty.

If you withdraw funds early, you may be charged a fee or, more likely, be paid a reduced rate of interest depending on how long is left until the term deposit matures.

If you are saving for a particular goal, such as a first home buyer saving for a deposit, it's particularly important to consider the term length and whether it suits your plans.

Here is an example of the interest rate deduction applied by term deposit provider, Rabobank.

% of term that elapsed when funds withdrawn	Interest rate deduction
Less than 20%	80%
20-39%	60%
40-59%	40%
60-79%	20%
80-99%	10%

What happens at the end of the term deposit term?

When your term deposit ends (matures), you generally have a few options depending on the provider:

You can reinvest the money for a new term with the same provider (either the same term as the previous one or a different one).

You can open a term deposit with another provider and transfer the funds there.

You can withdraw the money and use it for a different purpose entirely (e.g. move it into a high interest savings account).

If you don’t inform your bank what you want to happen at the end of your term deposit, you may be rolled into a new term deposit by default. This may not be the term deposit with the highest rate on offer from that provider.

Is my money safe in a term deposit?

Money saved in a term deposit with an authorised deposit-taking institution (ADI) is guaranteed by the Australian Government’s Financial Claim Scheme, up to a value of $250,000 per person per bank. That means no matter what happens to a bank, each customer with a term deposit will be protected up to $250,000.

If you have more than $250,000 to invest, you could spread your savings across multiple term deposit providers covered by the scheme to ensure you are protected. If you are investing a large amount, consider discussing your options with a financial advisor first.

You should also make sure that the product you’re investing in is in fact a term deposit. The Australian Securities and Investments Commission (ASIC) warns that there are cases where scammers advertise fake investments as being ‘like a term deposit’ with ‘guaranteed high returns’.

There may also be legitimate investment products (e.g. managed funds) that seem similar to what a term deposit offers, but these are much higher risk, ASIC warns.

Which banks in Australia offer term deposits?

The following providers are authorised deposit-taking institutions who can offer term deposits that will be covered by the government’s Financial Claims Scheme.

Alex Bank Pty Limited

AMP Bank Ltd

Arab Bank Australia Limited

Australia and New Zealand Banking Group Limited

Australian Military Bank Ltd

RSL Money

Australian Mutual Bank Limited (trading as - Endeavour Mutual Bank and Sydney Mutual Bank)

Australian Settlements Limited (provides industry services)

Australian Unity Bank Limited

Auswide Bank Ltd

Queensland Professional Credit Union Ltd

Avenue Bank Limited

B&E Ltd (trading as Bank of us)

Bank Australia Limited

Bank of China (Australia) Limited

Bank of Queensland Limited

BOQ Specialist (BOQS)

ME Bank

Bank of Sydney Ltd

Bendigo and Adelaide Bank Limited

Adelaide Bank

Alliance Bank

AWA Alliance Bank

BDCU Alliance Bank

Bendigo Bank

Circle Alliance Bank

Community Sector Banking

Delphi Bank

Nova Alliance Bank

Rural Bank

Service One Alliance Bank

Up Bank

Beyond Bank Australia

Nexus Mutual

BNK Banking Corporation Limited (previously

Goldfields Money Limited)

Goldfields Money

Cairns Penny Savings & Loans Limited (trading as Cairns Bank)

Central Murray Credit Union Limited

Central West Credit Union Limited

Challenger Bank Limited (previously - MyLifeMyFinance Limited)

Coastline Credit Union Limited

Commonwealth Bank of Australia Bankwest

Community First Credit Union Limited

Community First Bank

Easy Street Financial Services

Credit Union Australia Ltd (trading as Great Southern Bank)

Credit Union SA Ltd

Cuscal Limited (provides industry services)

Defence Bank Limited

Dnister Ukrainian Credit Co-operative Limited

Family First Credit Union Limited

Family First Bank

Fire Service Credit Union Limited

First Choice Credit Union Ltd

First Option Bank Ltd

Ford Co-operative Credit Society Limited (trading as Geelong Bank)

G&C Mutual Bank Limited

Gateway Bank Ltd

Goulburn Murray Credit Union Co-operative Limited

Heritage and People’s Choice Limited

Heritage Bank

People’s Choice Credit Union

Horizon Credit Union Ltd (trading as Horizon Bank)

HSBC Bank Australia Limited

Hume Bank Limited

IMB Ltd (trading as IMB Bank)

The Shire

Illawarra Credit Union Limited

in1bank Ltd

Indue Ltd

ING Bank (Australia) Limited (trading as ING)

Judo Bank Pty Ltd

Laboratories Credit Union Limited

Lithuanian Co-operative Credit Society "Talka" - Limited

Lutheran Laypeople's League of Australia

MacArthur Credit Union Ltd (trading as The MAC)

Macquarie Bank Limited

Macquarie Credit Union Limited

Maitland Mutual Limited (trading as The Mutual Bank)

Members Banking Group Limited (trading as RACQ Bank)

MyState Bank Limited

National Australia Bank Limited

Ubank

Newcastle Greater Mutual Group Ltd

Newcastle Permanent

Greater Bank

Northern Inland Credit Union Limited

Orange Credit Union Limited

Police Bank Ltd (trading as Border Bank)

Police Credit Union Limited

Police Financial Services Limited (trading as BankVic)

Police & Nurses Limited (trading as P&N Bank, and BCU Bank)

Pulse Credit Union Limited

QPCU Limited (trading as QBANK)

Qudos Mutual Ltd (trading as Qudos Bank)

Queensland Country Bank Limited

Rabobank Australia Limited

Railways Credit Union Limited (trading as MOVE)

Regional Australia Bank Ltd

South West Slopes Credit Union Ltd

Southern Cross Credit Union Ltd

Summerland Financial Services Limited (trading as - Summerland Credit Union)

Suncorp-Metway Limited

Teachers Mutual Bank Limited (trading as - Firefighters Mutual Bank, Health Professionals Bank, Hiver Bank, Teachers Mutual Bank and UniBank)

The Broken Hill Community Credit Union Ltd

The Capricornian Ltd

Traditional Credit Union Limited

Transport Mutual Credit Union Limited

Tyro Payments Limited

Unity Bank Limited (trading as Reliance Bank, Bankstown City Unity Bank and Unity Bank)

Victoria Teachers Limited (trading as Bank First)

Warwick Credit Union Ltd

Dalby Credit Union

Gympie Credit Union

WAW Credit Union Co-Operative Limited

BankWAW

Westpac Banking Corporation

Bank of Melbourne

BankSA

St George Bank

Woolworths Team Bank Limited

Best Term Deposit Rates in Australia

Best Term Deposit Rates in Australia

Compare term deposit rates

Best term deposit rates in December 2024

Compare the highest term deposit rates available right now across popular term durations.

Is now a good time to lock in a term deposit rate?

Term deposit versus savings account

Term deposit FAQ

Important information