Term Deposits Background

Term Deposit Rates Comparison

Term deposits are a lower-risk investment option that can help grow your savings. Compare term deposit rates from a range of providers with Canstar’s comparison tool.

Group Manager, Research & Ratings
Editor-in-Chief
Fact checked

Sort results Sort By
down-arrow
  • Highest rate p.a. between 1 & 4 mths - lowest first
  • Highest rate p.a. between 1 & 4 mths - highest first
  • Highest rate p.a. between 5 & 7 mths - lowest first
  • Highest rate p.a. between 5 & 7 mths - highest first
  • Highest rate p.a. between 8 & 13 mths - lowest first
  • Highest rate p.a. between 8 & 13 mths - highest first
  • Highest rate p.a. over 14 mths - lowest first
  • Highest rate p.a. over 14 mths - highest first
Challenger | Term Deposit
Challenger logo
Features Glossary
  • icon Interest paid end of term
  • icon For deposit amounts $5,000 - $1,000,000
4.75%
for 3 months
5.10% Glossary
for 6 months
5.15% Glossary
for 9 months
tickcross Glossary
Challenger | Term Deposit
Challenger logo
Features Glossary
  • icon Interest paid annually
  • icon For deposit amounts $5,000 - $1,000,000
tickcross
tickcross Glossary
5.15% Glossary
for 12 months
4.70% Glossary
for 2 years
Features Glossary
  • icon Interest paid end of term
  • icon For deposit amounts $1,000 - $1,000,000
4.80%
for 3 months
5.10% Glossary
for 6 months
5.10% Glossary
for 9 months
tickcross Glossary
Judo Bank | Personal Term Deposit
Judo Bank logo
Features Glossary
  • icon Interest paid annually
  • icon For deposit amounts $1,000 - $999,999
tickcross
tickcross Glossary
5.10% Glossary
for 12 months
4.80% Glossary
for 2, 3, 4 or 5 years
Features Glossary
  • icon Interest paid end of term
  • icon For deposit amounts $1,000 - $999,999
4.85%
for 3 months
5.10% Glossary
for 6 months
5.10% Glossary
for 9 or 12 months
4.85% Glossary
for 2, 3, 4 or 5 years
G&C Mutual Bank | Term Deposit
G&C Mutual Bank logo
Features Glossary
  • icon Interest paid annually
  • icon For deposit amounts over $1,000
tickcross
tickcross Glossary
5.05% Glossary
for 12 months
4.85% Glossary
for 2 or 3 years
Challenger | Term Deposit
Challenger logo
Features Glossary
  • icon Interest paid monthly
  • icon For deposit amounts $5,000 - $1,000,000
tickcross
tickcross Glossary
5.00% Glossary
for 12 months
4.55% Glossary
for 2 years
Australian Unity | Term Deposit
Australian Unity logo
Features Glossary
  • icon Interest paid annually
  • icon For deposit amounts over $5,000
tickcross
tickcross Glossary
5.00% Glossary
for 12 months
4.45% Glossary
for 18 months
Australian Unity | Term Deposit
Australian Unity logo
Features Glossary
  • icon Interest paid end of term
  • icon For deposit amounts over $5,000
4.55%
for 3 months
5.00% Glossary
for 6 months
5.00% Glossary
for 9 months
tickcross Glossary
G&C Mutual Bank | Term Deposit
G&C Mutual Bank logo
Features Glossary
  • icon Interest paid monthly
  • icon For deposit amounts over $1,000
4.65%
for 3 months
4.80% Glossary
for 6 months
5.00% Glossary
for 12 months
4.80% Glossary
for 2 or 3 years

Showing 10 of 240 results

Unsure of a term in the above table? View glossary

The initial results in the table above are sorted by Highest rate p.a. between 8 & 13 mths (High-Low) , then Provider Name (Alphabetical) . Additional filters may have been applied, see top of table for details.

Latest in term deposits

Recent Award Winners

What is a term deposit?

A term deposit is an account that locks away and invests your money for a fixed period of time, usually between one month and five years. In return, you can earn a fixed rate of interest on your money. Term deposits generally suit people who are looking for a lower-risk investment and want certainty of returns.

Many term deposits let you choose when you want interest to be paid. Depending on your preference, you may be able to choose for interest to be paid fortnightly, monthly, semi-annually, annually or at maturity (which means the end of the term). This can impact the interest rate you are offered.

If you decide to withdraw your money before the end of the term, you’ll usually need to give advance notice to your financial institution. They may charge you a penalty fee and you may also earn a reduced rate of interest.

How to compare term deposits

If you are looking for the best term deposit to suit your needs, you can compare term deposits based on your own financial requirements using the comparison selector tool at the top of this page. Canstar’s Term Deposit Awards could help. Canstar compares term deposits using a sophisticated rating methodology that takes into account the interest rate and features on offer.

Some of the factors to consider when comparing term deposits include:

  • Interest rates on offer for different terms
  • What the ideal term is for your term deposit (it is usually between one month and five years)
  • How easy it is to open up a term deposit (online application is generally available)
  • Whether there is a minimum investment amount
  • Whether there are any set-up or account fees
  • Whether you can make early withdrawals and what notice period and penalties apply
  • What happens to the account at maturity (e.g. automatic rollover to the new term or maturity alerts) and whether there are any costs associated with getting your funds

Learn more:

What are the best term deposit rates? 

CBA, NAB, ANZ & Westpac term deposit rates

What is the Australian Government deposit guarantee scheme?

Award-winning term deposit providers revealed


About our finance experts

Josh Sale, Term Deposit Ratings Manager

Headshot of Josh Sale, CanstarAs Canstar’s Ratings Manager, Josh Sale is responsible for the methodology and delivery of Canstar’s Term Deposit Star Ratings and Awards. With tertiary qualifications in economics and finance, Josh has worked behind the scenes for the last five years to develop Star Ratings and Awards that help connect consumers with the right term deposit for them.

Josh is passionate about helping consumers get hands-on with their finances. Josh has been interviewed by media outlets such as the Australian Financial Reviewnews.com.au and Money Magazine.

You can follow Josh on LinkedIn, and Canstar on Twitter and Facebook.


Nina Rinella, Editor-in-Chief

As Canstar’s Editor-in-Chief, Nina heads up a team of talented journalists committed to helping empower consumers to take greater control of their finances. Previously Nina founded her own agency where she provided content and communications support to clients around Australia for eight years. She also spent four years as the PR Manager for American Express Australia, and has worked at a Brisbane communications agency where she supported dozens of clients, including Sunsuper and Suncorp.

Nina has ghostwritten dozens of opinion pieces for publications including The Australian and has been interviewed on finance topics by the Herald Sun and the Sydney Morning Herald. When she’s not dreaming up ways to put a fresh spin on finance, she’s taking her own advice by trying to pay her house off as quickly as possible and raising two money-savvy kids.

Nina has a Bachelor of Journalism and a Bachelor of Arts with a double major in English Literature from the University of Queensland. She’s also an experienced presenter, and has hosted numerous events and YouTube series.

You can follow Nina on Instagram or Twitter, or Canstar on Facebook.


 

What are the interest rates on a term deposit?

The interest rates available on a term deposit can vary depending on the provider, the amount you’re investing and the term you’re considering. Some institutions may even offer a bonus on the interest rate if you already hold an account with them.

Remember to check carefully to see how the term deposit rate varies with the term duration: a longer investment doesn’t always mean a higher interest rate.

Can I lose money with a term deposit?

Term deposits are considered a safe investment, although you may not earn as much interest from a term deposit as you might by pursuing some alternative investment strategies.

Deposits of up to a total of $250,000 per account holder, per institution offered by an ADI in Australia are protected under the financial claims scheme. That includes any term deposits you have with a listed institution.

But APRA warns that some banks, building societies or credit unions may operate multiple banking businesses with different trading names under the same banking licence. If you’ve multiple deposits – including term deposits – in businesses operating under the same licence you will only be covered up to a total of $250,000.

How do I find the best term deposit rates?

When searching for term deposit rates, it may be tempting to look towards the big banks such as ANZ, CommBank, NAB or Westpac. But when it comes to term deposits, smaller providers tend to offer many of the same benefits as the big four, and often with better and higher rates.

Using Canstar’s term deposit comparison table can be an easy way to view and compare interest rates from different providers across Australia on our database. Our comparison table also displays the best term rates for different term periods for each provider. This is because not all providers follow the rule that longer term periods mean higher interest rates.

What happens at the end of a term?

When your term deposit matures at the end of the fixed term, you can either roll over all your invested money into a new term deposit – likely at a new interest rate – or you can withdraw some or all of the money.

Given the interest rate is fixed for the term of the investment, you know in advance how much you will earn at the end of the term. If you decide to take out your money early, you may be charged a penalty fee or earn a reduced rate of interest.

How do I apply for a term deposit?

You can apply for a term deposit in much the same way as you’d apply for a normal bank account. The process may be simpler if you’re already an existing customer with the institution offering the term deposit you’re interested in.

Once you’ve decided how much money you want to invest, at a set term deposit rate, you can usually complete an application form online. Or you can head into a local branch office if one is available.

What are the alternatives to a term deposit?

If locking away your money in a term deposit does not appeal to you, an alternative you might consider is a high-interest savings account. But unlike term deposits, most high-interest savings accounts require you to meet certain conditions in order to accrue the higher interest on your savings.

The interest rate on savings accounts also typically change month-to-month, based on market conditions. This means the investment return over time is harder to predict. With a term deposit, the rate is fixed for the set term of the investment, and so the investment outcome is typically highly predictable.

Term deposits glossary of terms

Please note that these are a general explanation of the meaning of terms used in relation to term deposits. Your bank or financial institution may use different terms, and you should read the Target Market Determination and other applicable terms and conditions carefully to understand everything that may apply during your investment term. You cannot rely on these terms in relation to any term deposit you may purchase.

What is automatic rollover? 

An automatic rollover is where your term deposit is automatically reinvested into a new term deposit when it matures. Providers can offer different interest rates for new terms, so you may be offered a lower rate. Providers usually have a ‘grace period’ after maturity in which you can choose to withdraw your original term deposit or make changes to your new term deposit.

What is a fixed interest rate?

A fixed interest rate is one that does not change for a set period of time.

What is the government guarantee?

The government guarantee provides protection for deposits up to $250,000 per account-holder per authorised deposit-taking institution (ADI), which includes banks, building societies and credit unions, in the event that it fails.

What does it mean by maturity?

Maturity is when the term deposit ends and will stop accumulating interest. Also called the ‘end of the term’. You can choose to withdraw some or all of your money at maturity, or you may decide to rollover your funds into a new term deposit.

What does TD stand for?

TD stands for term deposit.

What is a term?

A term is the length of time or duration a term deposit will run for.

Term deposit providers

Below is a list of the winning term deposit providers from Canstar’s 2023 Term Deposit Awards:

  • Judo Bank
  • G&C Mutual Bank

Compare more providers using our term deposit comparison tables or by viewing our Term Deposit Award report:

Compare Term Deposits

This content was reviewed by Senior Finance Journalist Alasdair Duncan as part of our fact-checking process.

Important information

For those that love the detail

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.

Canstar may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it’s an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product's rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar. Payment of fees for ads does not influence our Star Ratings. See How We Get Paid to find out more.

What is a Target Market Determination?

A Target Market Determination (‘TMD’) is a document that explains which people particular financial products may be suitable for (the target market) and sets out any conditions around how financial products can be distributed to consumers.

Why do product issuers provide Target Market Determinations?

From 5 October 2021, TMDs are compulsory for most financial products.

Issuers and distributors of financial products must take reasonable steps that are likely to result in financial products reaching consumers in the target market defined by the product issuer.

We recommend that you consider the TMD before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

The results don’t include every provider in the market and we may not compare all features relevant to you. You can find a description of the initial sort order below the table.You can use the selector to change the term deposit duration. The initial sort order for each term deposit duration is the highest advertised interest rate for a specific term, followed by alphabetically by company name. The interest rates used for the sort order for each duration is as follows: 1 month (for 1- 4 months), 6 months (for 5 - 8 months), 12 months (for 9 - 12 months), 18 months (for 13 - 18 months) and 2 years (for 2 - 5 years). You can use the sort buttons at the top of each column to re-order the display.  Check current rates and product details with the product issuer. The results will show the products that most closely match the inputs in the selector above the table.  If you are unsure about any terms used in the comparison table please refer to the glossary. 

Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. You may need financial advice from a qualified adviser. Canstar is not providing a recommendation for your individual circumstances. It’s important you check product information directly with the provider. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the PDS and TMD. For more information, read our Detailed Disclosure

Compound interest explained: Interest earned on an initial amount of money invested as well as on the accumulated interest. Interest can be compounded at different frequencies such as monthly, semi-annually, annually, etc. The compound frequency, the number of compounding periods and the interest rate will determine the amount of interest earned. Example: If you invest $10,000 for 5 years, at 3% interest compounded monthly, you would earn $1,616. Then by adding it to the initial investment amount, you would have a total of $11,616 by the end of the 5-year term.