Highest Term Deposit Rates: August 2018

Looking to invest your money in a term deposit? Here are the highest interest rates available this month from Canstar’s database.

While rates on savings accounts have been falling, some term deposit rates are climbing as banks look to encourage customers to lock their savings away for pre-determined periods. Canstar data shows that in June 2018, 13 institutions increased interest rates on their one-year term deposits at an average of 0.21%, while only one lowered rates.

Term deposits can be a safe and reliable way to grow wealth over a pre-determined period of time, as you are virtually guaranteed to earn interest on your deposit. With a term deposit, the interest rate you receive is locked in at the time you make your deposit, which gives greater certainty of returns in a deposit landscape where interest rates are declining.

On the other hand, they can be inflexible, as term deposits don’t always allow you to add extra funds and may require you to provide a period of notice if you wish to make a withdrawal, which can also attract an early withdrawal fee.

Term deposit interest rates tend to vary a lot between providers and are subject to frequent changes. While a number of providers have boosted term deposit rates recently, Canstar’s data shows a few companies have lowered their term deposit interest rates by as much as 0.7% in 2018 so far. With movements in both directions, it can pay to shop around, but where do you start?

Luckily for would-be term deposit enthusiasts, Canstar collects information on term deposit rates from over 70 different institutions. The tables you see below contain the 10 highest interest rates on term deposits currently listed on Canstar’s website, sorted by the advertised interest rate (highest to lowest) then by provider name (alphabetically). The results shown are for term deposits with interest paid annually, and are for the following terms:

  • One year
  • Two years
  • Three years
  • Four years
  • Five years

Please note that for each table, the data was pulled as of August 3 2018. It is possible that some of the rates seen in these tables may not still be the same. Please check Canstar’s term deposit tables to view rates that are up to date. 

Compare Term Deposit Rates

Highest term deposit rates – one year term

Company Advertised Rate Min Term Max Term Cooling off period (days) Interest Paid Apply Online
Teachers Mutual Bank 3.00% 12 months 12 months N/A Annually No
UniBank 3.00% 12 months 12 months N/A Annually No
AMP 2.85% 12 months under 24 months 7 Annually No
Bank Australia 2.85% 12 months 12 months 14 Annually Yes
CUA 2.85% 12 months 12 months 14 Annually Yes
Gateway Bank 2.85% 12 months 12 months 10 Annually Yes
ING 2.85% 12 months 12 months 7 Annually Yes
ME 2.80% 12 months 12 months 7 Annually Yes
MyState 2.80% 12 months 12 months 14 Annually Yes
G&C Mutual Bank 2.75% 12 months 12 months 10 Annually Yes

Source: Canstar. 

Highest term deposit rates – two year term

Company Advertised Rate Min Term Max Term Cooling off period (days) Interest Paid Apply Online
 CUA  3.00%  24 months  24 months  14  Annually  Yes
 ING  3.00%  24 months  24 months  7  Annually  Yes
 The Mutual  3.00%  24 months  24 months  7  Annually  Yes
 AMP  2.95%  24 months  Under 36 months  7  Annually  No
 Bank Australia  2.95%  24 months  24 months  14  Annually  Yes
 Qudos Bank  2.85%  24 months  24 months  N/A  Annually  Yes
 Bank First  2.80%  24 months  24 months  5  Annually  Yes
 BankVic  2.80%  24 months  24 months  14  Annually  Yes
 G&C Mutual Bank  2.80%  24 months  24 months  10  Annually  No
 ME  2.80% 24 months 24 months  7 Annually  Yes

Source: Canstar.

Highest term deposit rates – three year term

Company Advertised Rate Min Term Max Term Cooling off period (days) Interest Paid Apply Online
 The Mutual   3.05%  36 months  36 months  7  Annually  Yes
 AMP  3.00%  36 months  Under 48 months  7  Annually  No
 Bank Australia  3.00%  36 months  36 months  14  Annually  Yes
 Big Sky   3.00%  36 months  36 months  14  Annually  Yes
 Heritage Bank  3.00%  36 months  36 months  7  Annually  Yes
 ME  3.00%  36 months  36 months  7  Annually  Yes
 People’s Choice Credit Union  3.00%  36 months   48 months  7  Annually  Yes
 Qudos Bank  3.00%  36 months  36 months  N/A  Annually  Yes
 Bank First  2.90%  36 months  36 months  5  Annually  Yes
 BankVic  2.90%  36 months  36 months  14  Annually  Yes

Source: Canstar 

Highest term deposit rates – four year term

Company Advertised Rate Min Term Max Term Cooling off period (days) Interest Paid Apply Online
 RaboDirect  3.30%  48 months  48 months  7  Annually  Yes
 Rabobank  3.30%  48 months  48 months  5  Annually  Yes
 AMP  3.20%  48 months  Under 60 months  7  Annually  No
 Big Sky  3.00%  48 months  48 months  14  Annually  Yes
 Heritage Bank  3.00%  48 months  48 months  7  Annually  Yes
 ME  3.00%  48 months  48 months  7  Annually  Yes
 People’s Choice Credit Union  3.00%  36 months  48 months  7  Annually  Yes
 People’s Choice Credit Union  3.00%  48 months  60 months  7  Annually  Yes
 Bank First  2.95%  48 months  48 months  5  Annually  Yes
 G&C Mutual Bank   2.95%  48 months  48 months  10  Annually  Yes

Source: Canstar. 

Highest term deposit rates – five year term

Company Advertised Rate Min Term Max Term Cooling off period (days) Interest Paid Apply Online
 RaboDirect  3.50%  60 months  60 months  7 Annually  Yes
 Rabobank  3.50%  60 months  60 months  5  Annually  Yes
 AMP  3.25%  60 months  60 months  7  Annually  No
 Bank First  3.00%  60 months  60 months  5  Annually  Yes
 BankVic  3.00%  60 months  60 months  14  Annually  Yes
 Big Sky  3.00%  60 months  60 months  14  Annually  Yes
 G&C Mutual Bank  3.00%  60 months  60 months  10  Annually  No
 Heritage Bank  3.00%  60 months  60 months  7  Annually  Yes
 ME  3.00%  60 months  60 months  7  Annually  Yes
 People’s Choice Credit Union  3.00%  60 months  60 months  7  Annually  Yes

Source: Canstar. 

An alternative to term deposits is a savings account. The table below displays a snapshot of savings accounts on Canstar’s database, sorted by the total interest rate (highest-lowest) then by provider name (alphabetically). The results and Star Ratings shown are based on a saver in NSW with savings of $10,000. Source: Canstar. 

What else makes a good term deposit?

While important, a high interest rate isn’t the only thing to consider when looking for a term deposit. In researching our 2018 Term Deposit Award, Canstar evaluates term deposits based on the following elements:

  • The ‘terms’ (length of the term deposit) available
  • Any minimum deposit requirements that exist
  • How easy it is to open and withdraw from
  • Whether early withdrawals come with penalties or fees

You can compare term deposits based on your own financial requirements from 71 different institutions using Canstar’s comparison page. You should also be sure to read the product discourse statement (PDS) for your chosen term deposit before making a decision.

Compare Term Deposits

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