Compare Term Deposits

Helpful Calculators

calculator

Savings Planner

calculator

Budget Planner

calculator
Term Deposit Calculator

Recent Award Winners

Term Deposits

What is a term deposit?

Term Deposit Bank of the Year 2019 Award

A term deposit is an investment of cash placed with a financial institution for a fixed period of time, known as the term, with a fixed interest rate for your return at the end of the term. A term deposit is commonly referred to as a TD, but can also be known as a certificate of deposit or CD.

Fixed terms can range from 1 month to 5 years and the money can usually only be withdrawn at the end of the term.

‘Advance notice’ term deposits allow you to withdraw the money earlier if you pay a penalty fee and give advance notice of 31 days. You may receive a slightly higher interest rate for an advance notice term deposit than for a standard term deposit.

Term deposits are popular for use by investors who prefer receiving a set return instead of anxiously watching the daily fluctuations of the share market. Other investors use term deposits as just one part of their investment portfolio.

Applying for a term deposit is essentially the same as applying for a normal savings bank account, and most applications can be made online these days.

Compare Term Deposits

How Canstar compares term deposits

CANSTAR compares term deposits using a sophisticated rating methodology that takes into account both the fees and features of the product. We compare each term deposit and then rate it out of 5, with a 5-star rated product offering outstanding features and value.

Some of the features you should look for when comparing term deposits include:

  • Interest rates on offer for different terms
  • What the ideal “term” or “tenure” is for your term deposit, e.g. 1 month up to 5 years
  • How easy it is to open up a term deposit (should have online application available)
  • Requirement for a minimum investment amount
  • Whether a maturity reminder is provided and how it is delivered (e.g. SMS, email), or whether rollover of the term deposit is automatic
  • Number of days available to make amendments and add more funds to the term deposit
  • Whether you are able to make early withdrawals without paying a prepayment interest penalty or early withdrawal penalty
  • The notice period required to be given for Advance Notice Term Deposits

And as always, be sure to read the product discourse statement (PDS) so you know what you’re signing up for!

You can compare term deposits based on your own financial requirements using the comparison selector tool at the top of this page:

Compare Term Deposits

Written by: TJ Ryan and Tim Smith

 

 

Follow Canstar on Facebook and Twitter for regular financial updates.


Thanks for visiting Canstar, Australia’s biggest financial comparison site*

→ Looking to find a better deal? Compare car insurancecar loanshealth insurancecredit cards, life insurance, as well as home loans, with Canstar.

 

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 product disclosure statement (PDS) of your policy 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 a advance notice term deposit?

A advance notice term deposit is a term deposit where the institution allows you to withdraw the money earlier than the end of the term, if you pay a penalty fee and give advance notice of 31 days. Advance notice term deposits often have a slightly higher interest rate than standard term deposits.

What are basis points?

Basis points is a unit of measurement used in financial situations to describe the percentage change in interest rates or the value of a financial product. One basis point is 0.01%.

What is a cooling-off period?

A cooling-off period defines the number of days available for the investor to change the investment term or amount of money invested in the term deposit. The number of days will be specified in the PDS and the term deposit contract.

What is a coupon payment?

A coupon payment is a portion of a bond, entitling the holder to receive a payment of interest. For example, a 10% coupon paid semi-annually would yield two 5% interest payments.

What is a debenture?

A debenture is a medium- to long-term investment issued by a company when you lend money to that company. In return for your investment, you receive a regular and fixed amount of interest for the term of the investment. The invested funds (principal) are repaid at the end of the term (maturity).

What is interest paid?

Interest paid is the amount of simple interest paid on the principal amount (the initial amount of money placed in the term deposit). For example, a term deposit paying 6% interest per annum would pay 6% of the sum invested at the end of a 12-month term, or 3% at the end of a 6-month term.

What is laddering?

Laddering is a method of investing in term deposits. The investor puts some of their money in a long-term deposit and the rest in several short-term deposits that renew regularly.

What is maximum term?

Maximum term is the maximum amount of time that you can receive a certain interest rate on a term deposit.

What does it mean by maturity?

Maturity is the time at which the term deposit will expire and stop accumulating interest. Also known as the ‘end of term’.

What is a minimum term?

Minimum term is the minimum amount of time that you can receive a certain interest rate on a 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.

What is a yield?

A yield is the rate of return earned on an investment.

Term deposit account providers we research and rate

Below are some of our popular term deposit providers:

  1. ADCU
  2. AMP Bank
  3. ANZ
  4. Arab Bank Australia
  5. Australian Military Bank
  6. Australian Unity
  7. Auswide
  8. Bank Australia (formerly known as bankmecu)
  9. Bank of Melbourne
  10. Bank of Sydney
  11. BankSA
  12. BankVic
  13. Bankwest
  14. bcu
  15. Bendigo Bank
  16. Beyond Bank
  17. BOQ
  18. Cairns Penny
  19. Catalyst Money
  20. CBA Online Only
  21. Citibank
  22. Coastline Credit Union
  23. Commonwealth Bank
  24. Community First Credit Union
  25. CUA
  26. Defence Bank
  27. Delphi Bank
  28. ECU Australia
  29. Encompass Credit Union
  30. First Option Bank
  31. Firstmac
  32. FCCS Credit Union
  33. G&C Mutual Bank
  34. Gateway Credit Union
  35. Greater Bank
  36. Greater Building Society
  37. Heritage Bank
  38. Holiday Coast Credit Union
  39. Horizon Credit Union
  40. HSBC
  41. Hume Bank
  42. Hunter United
  43. Illawarra Credit Union NSW
  44. IMB
  45. ING Direct
  46. Macquarie Credit Union
  47. ME (ME Bank)
  48. MOVE Bank
  49. MyState
  50. NAB
  51. Newcastle Permanent
  52. Nexus Mutual
  53. Northern Beaches Credit Union
  54. P&N Bank
  55. People’s Choice Credit Union
  56. Police Bank
  57. Qantas Credit Union
  58. QBANK (formerly Queensland Police Credit Union (QPCU)
  59. QT Mutual Bank
  60. Quay Credit Union
  61. Qudos Bank
  62. Queenslanders Credit Union
  63. Rabobank Australia
  64. RaboDirect
  65. RACQ
  66. Rural Bank Ltd
  67. Rural Bank ONE
  68. SCU
  69. Select Credit Union
  70. SERVICE ONE Alliance Bank
  71. St.George Bank
  72. Summerland Credit Union
  73. Suncorp Bank
  74. Teachers Mutual Bank
  75. The Capricornian
  76. The Mac
  77. The Mutual
  78. The Rock Building Society
  79. Transport Mutual Credit Union
  80. UBank
  81. UniBank
  82. Unicredit WA
  83. Victoria Teachers Mutual Bank
  84. Westpac
  85. Woolworths Employees’ Credit Union
  86. Your Credit Union

For more information on how CANSTAR rates term deposits, read our latest star ratings report.

Compare Term Deposits