Best term deposit interest rates in Australia

The table below shows some of the best term deposit rates from our Online Partners, sorted by highest rates per annum (p.a.) for five-seven month terms.

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  • 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
Features Glossary
  • icon Interest paid end of term
  • icon For deposit amounts $1,000 - $999,999
4.25%
for 3 months
4.55% Glossary
for 5 months
4.00% Glossary
for 8 or 12 months
tickcross Glossary
Features Glossary
  • icon Interest paid end of term
  • icon For deposit amounts $1,000 - $2,000,000
4.25%
for 3 months
4.35% Glossary
for 6 months
4.15% Glossary
for 9 months
tickcross Glossary
Features Glossary
  • icon Interest paid end of term
  • icon For deposit amounts over $5,000
4.30%
for 4 months
4.30% Glossary
for 6 months
4.10% Glossary
for 11 months
tickcross Glossary
Features Glossary
  • icon Interest paid monthly
  • icon For deposit amounts $1,000 - $2,000,000
4.15%
for 3 months
4.25% Glossary
for 6 months
4.05% Glossary
for 9 months
4.25% Glossary
for 5 years
Features Glossary
  • icon Interest paid end of term
  • icon For deposit amounts $5,000 - $1,000,000
3.90%
for 3 months
4.25% Glossary
for 5 months
4.00% Glossary
for 8 months
tickcross Glossary
Features Glossary
  • icon Interest paid monthly
  • icon For deposit amounts $1,000 - $19,999
3.95%
for 3 months
3.90% Glossary
for 5, 6 or 7 months
3.90% Glossary
for 8 months
3.60% Glossary
for 18 months

Showing 6 of 244 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 5 & 7 mths (High-Low) , then Highest rate p.a. between 8 & 13 mths (High-Low) , then Provider Name (Alphabetical) . Additional filters may have been applied, which impact the results displayed in the table - filters can be applied or removed at any time.

About best term deposit interest rates in Australia

If you have some money put aside and are looking for a relatively low-risk investment that could earn you a fixed rate of interest, then a term deposit could be an option worth considering.

The Reserve Bank of Australia (RBA) has cut the cash rate for the second time in 2025, meaning banks and lenders will typically follow suit with their own interest rates. If you’re keen to lock in a good term deposit rate, it might pay to keep an eye on the RBA’s movements and compare your options.

Term deposit rates vary depending on how much you wish to invest and for how long. At the time of writing, the best term deposit rate is 4.75% for a 12-month term deposit of $10,000, as listed on Canstar’s database.

Compare the highest term deposit rates – July 2025

Here are the top term deposit rates on Canstar’s database at the time of writing, based on six-month, 12-month, two-year and five-year terms. Tables are based on an investment of $10,000 in a personal term deposit with interest paid as specified.

Products are sorted by highest advertised rate, then alphabetically by provider name. Canstar may earn a fee from the providers displayed in the table. These are the rates listed on Canstar’s database at the time of writing. Canstar’s database is updated daily as shown by the comparison table above, so the current highest rates in these tables below may be different.

Highest 6-month term deposit rates

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Provider Rate
Judo Bank 4.55%
AMP Bank 4.45%
Australian Military Bank 4.45%
Australian Unity Bank 4.45%
Bank of Sydney 4.45%
MOVE Bank 4.45%

Source: www.canstar.com.au – 01/07/2025. Based on personal non-compounding term deposits on Canstar’s database, with rates based on a deposit of $10,000. Includes all payment frequencies. Only considers the highest rate available from each provider. Table sorted in descending order by rate, followed alphabetically by provider.

Highest 12-month term deposit rates

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Provider Rate
Judo Bank 4.75%
Unity Bank 4.60%
Bank of Sydney 4.15%
Australian Military Bank 4.10%
Bank of us 4.10%
G&C Mutual Bank 4.10%
Illawarra Credit Union 4.10%

Source: www.canstar.com.au – 01/07/2025. Based on personal non-compounding term deposits on Canstar’s database, with rates based on a deposit of $10,000. Includes all payment frequencies. Only considers the highest rate available from each provider. Table sorted in descending order by rate, followed alphabetically by provider.

Highest 2-year term deposit rates

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Provider Rate
Judo Bank 4.05%
BankVic 4.00%
Bank Australia Limited Trading 3.90%
Bank of us 3.90%
Police Bank 3.90%

Source: www.canstar.com.au – 01/07/2025. Based on personal non-compounding term deposits on Canstar’s database, with rates based on a deposit of $10,000. Includes all payment frequencies. Only considers the highest rate available from each provider. Table sorted in descending order by rate, followed alphabetically by provider.

Highest 5-year term deposit rates

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Provider Rate
Judo Bank 4.45%
Rabobank Australia 4.40%
BankVic 4.00%
IMB 4.00%
Macquarie Bank 3.80%

Source: www.canstar.com.au – 01/07/2025. Based on personal non-compounding term deposits on Canstar’s database, with rates based on a deposit of $10,000. Includes all payment frequencies. Only considers the highest rate available from each provider. Table sorted in descending order by rate, followed alphabetically by provider.


Before deciding on a term deposit, it could be a good idea to research your options and compare rates, features and terms and conditions (which can be found in the Product Disclosure Statement). It may also be worth seeking the advice of a suitably qualified professional.

What do I look for in a term deposit?

While a high interest rate is important when it comes to earning interest on your savings, it’s not the only factor to take into account when choosing the best term deposit for you. Some other factors to consider when comparing include:

  • When interest is paid: Interest is usually paid monthly, annually or at maturity, which means when the deposit’s term comes to an end. Compound interest is interest earned on an initial amount of money invested as well as on the accumulated interest. The compounding frequency, the number of compounding periods and the interest rate will determine the amount earned on a term deposit investment.
  • Term: Check how the interest rate differs by term, which is the amount of time your money would be locked into the investment. When choosing an investment term, consider whether you would need to access the money in the near-future or if you could lock it away for a longer period of time and potentially earn a higher interest rate. Penalties could apply for withdrawing funds before the end of the specified term.
  • Investment amount: Also check how the interest rate differs by how much you have to invest and what the minimum and maximum amounts are. This could help you to decide how much to invest, for how long and in how many different term deposit accounts.
  • Fees: See what penalty fee applies for early withdrawal and if any other fees are charged (such as set-up or account-keeping fees).
  • Set up and usage: Many financial institutions have online applications for opening new term deposits. How easy they are to use and navigate may be something worth considering, as well as what features are offered to help you keep track of your term deposit. This may also include what happens to your term deposit when it reaches maturity, such as if it automatically rolls over into a new term deposit, or if you’ll receive alerts when your term deposit is close to maturity.
  • Projected investment earning: Work out how much you are likely to earn on your term investment over time and if this meets your expectations. Consider the fees and other charges that may apply. You can use Canstar’s term deposit calculator to work this out.

You might want to compare the investment outcome against other forms of earning options, such as taking advantage of an offset account on your home loan, or different types of investments. You may also be interested in Canstar’s Term Deposits Awards which recognises the financial institutions that offer quality term deposit products across rates, terms and product features.

How to find the best term deposit rates?

When searching for term deposit rates, you may be tempted to look towards the big four 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 higher rates.

It can be time-consuming to visit each provider’s site individually in order to compare rates, so Canstar’s term deposit comparison table offers an efficient way to view and compare interest rates from different providers across Australia on our database. This can be viewed above, on the Canstar website or via the Canstar app.

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 are the pros and cons of term deposits?

While term deposits are considered a low-risk and certain investment return, they do still come with potential advantages and disadvantages. Below are some factors to consider when weighing up if a term deposit is right for you.

Potential advantages

  • Secure investment: Term deposits are considered a safer investment when compared to other alternative investment strategies such as share trading. Your term deposit (up to a total of $250,000 of all funds kept with an authorised deposit-taking institution (ADI) and its subsidiaries) is also protected under the Financial Claims Scheme, as long as it’s opened with an ADI in Australia.
  • Guaranteed return: As long as you do not withdraw your money early, you are guaranteed to earn interest and receive a return on your term deposit.
  • Budgeting: Since all parameters are known, term deposits can also be helpful for budgeting future expenses. For example, if you’re planning to buy a new car, you can open a term deposit for one year to fund the purchase and know exactly how much you will have at the end of the year term.

Potential disadvantages

  • Lack of flexibility: Term deposits typically have early withdrawal penalties which can be a fee, a reduction in the interest rate, or a combination of both. You generally also have to provide the financial institution with a 31 day notice that you want to withdraw your funds. These steps make it harder for you to access your deposit money during the term, particularly if you require it in cases of emergency.
  • Market Changes: Since your term deposit rate is locked at the interest rate agreed at the beginning of the term, it will not be affected by any economic changes (such as the cash rate) during the term period. This can be good or bad, depending on where interest rates go. For example, if interest rates go up, your term deposit rate will not increase and may be lower than the term deposit rates on offer at that time.
  • Inflation: If you decide on a longer term deposit, such as a five year term, high inflation rates could potentially erode the value of the term deposit and its earnings over time. This means the money withdrawn at the end of your term may not be worth as much as when you deposited it.

Term deposits v savings accounts

Term deposits and savings accounts are both secure investment options to consider, as long as they’re held by an ADI and are worth less than $250,000. That being said, they function in different ways.

With a term deposit, the interest rate is fixed for the set term of the investment, so the outcome is typically highly predictable. There may, however, be penalties for early withdrawal, such as fees or a lowering of the interest rate earned. Term deposits are generally seen as being more suitable for longer-term savings goals, due to their consistent interest rates and lack of access to funds. You can compare term deposit rates with Canstar.

If you want flexible access to your cash, on the other hand, you might want to consider a high-interest savings account. But unlike term deposits, you may need to meet certain criteria, such as monthly deposit amounts and withdrawal limits, to receive a particular interest rate. The interest rates on savings accounts are generally variable as well, which means they could change at any time based on economic conditions. This means the investment return over time is harder to predict. Savings accounts can often be useful for short-term savings goals, due to the readily available access to funds. You can compare savings accounts with Canstar.

What happens when a term deposit matures?

When a term deposit reaches its end, you can choose to withdraw some or all of your money, or you can roll the funds over into a new term deposit. It’s important to be aware, though, that you may be offered a different interest rate on the new term, which could be lower.

If you decide to withdraw your money before the end of the term, you may be charged a penalty fee or earn a lower rate of interest.

With all investments, you should carefully read the terms and conditions, Product Disclosure Statement (PDS) and Target Market Determination (TMD) as well as any other relevant documentation for any products you’re considering before making a decision.

Frequently Asked Questions about Best Term Deposit Rates

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

With a term deposit you agree to lock away your money for a set period of time where it will accrue interest at the set interest rate.

You may find that you can access a higher rate of interest than you would if the money was in a savings account (without bonus interest) where you still have easy access to your money, particularly when it comes to larger sums and longer terms.

Generally speaking, the longer the term of your deposit, the higher the interest rate, although this may not always be the case. You should check the various term deposit rates offered by each financial institution when considering any investment. Some longer term deposit rates can be lower than mid-term investments.

You may be able to select how frequently the interest is paid on your term deposit. For example, you may be able to opt for the interest to be paid monthly, quarterly, every 12 months or at maturity, depending on the length of your term.

Look carefully though at the per annum (p.a.) interest rate you’re offered to see if it makes any difference to the amount of the final interest payment.

You can use Canstar’s term deposit calculator to get an idea of how much interest you can expect on your term deposit, based on the amount you invest, the term length, and the interest rate.

When the term ends (for example, at the end of its 12-month term), it is said to have reached ‘maturity’. At this point, you may choose to access your money or opt to reinvest (or rollover) some, or all, of the amount into a new term deposit. You may, however, be offered a different interest rate if you choose to rollover the funds into a new term deposit.

The interest rates you’re offered on a term deposit can vary depending on the provider, the amount you’re investing and the length of term you’re considering. Some financial institutions may even offer a bonus on the interest rate if you already hold an account with them or meet other eligibility requirements.

Remember to carefully check to see how the term deposit rate varies for different term durations, as a longer investment period doesn’t always mean a higher interest rate.

Applying for a term deposit works in much the same way as applying for a regular bank account. Generally this process will be simpler if you’re already an existing customer with the financial institution offering the term deposit that 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. Alternatively, you can head into a local branch office (if one is available) or contact the institution over the phone.

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, such as share trading.

Deposits of up to a total of $250,000 per account holder, per authorised deposit-taking institution (ADI) in Australia are protected under the Financial Claims Scheme. That includes any term deposits you have with a listed financial institution.

The Australian Prudential Regulation Authority (APRA) warns, however, that some banks, building societies and credit unions may operate multiple banking businesses with different trading names under the same ADI licence. If you have multiple deposits—including term deposits—in businesses operating under the same licence you will only be covered up to a total of $250,000. For example, Westpac also owns Bank of Melbourne, BankSA and St George Bank. If you held $500,000 in two different term deposits, one with Westpac and one with St George Bank, only $250,000 of your money would be covered under the Financial Claims Scheme.

  • The peak of the RBA’s cash rate hikes in 2022 and 2023 saw a surge in interest in term deposits, with Aussies looking for ways to get a return on their money as variable home loan rates climbed substantially.
  • The playing field has changed somewhat since then, and at its May 2025 board meeting, the RBA cut the cash rate for the second time this year. Further cuts are predicted as the year progresses.
  • When the cash rate falls, banks and lenders tend to cut their interest rates for savings, so with further rate cuts potentially on the horizon, you may be thinking about locking in a good term deposit rate while you can.

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 is typically variable, meaning it can change month-to-month based on economic 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 the investment outcome is typically highly predictable.

Latest in term deposits

Canstar Term Deposits Awards

Looking for an award-winning product or to switch providers or brands? Canstar rates products based on price and features in our Star Ratings and Awards. Our expert Research team shares insights about which products offer 5-Star value and which providers offer outstanding value overall. We also reveal which providers have the most satisfied customers in our dedicated Customer Satisfaction Awards.

Term Deposits Awards

About the authors

Nick Whiting, Content Producer

Nick Whiting
Nick is a Content Producer at Canstar, providing assistance to Canstar's Editorial Finance Team in its mission to empower consumers to take control of their finances. He has written hundreds of articles for Canstar across all key finance topics. Coming from a screenwriting background, Nick completed a Bachelor of Film, Television and New Media Production from Queensland University of Technology. Nick has also completed RG 146 (Tier 1), making him compliant to provide general advice for general insurance products like car, home, travel and health insurance, as well as giving him knowledge of investment options such as shares, derivatives, futures, managed investments, currencies and commodities. Nick’s role at Canstar allows him to combine his love of the written word with his interest in finance, having learned the art of share trading from his late grandfather. Nick strives to deliver clear and straightforward content that helps the everyday consumer navigating the world of finance. Nick is also working on a TV series in his spare time. You can connect with Nick on LinkedIn.

Joshua Sale, GM, Research

Joshua Sale

As Canstar’s Group Manager, Research, Ratings & Product Data, Josh Sale is responsible for the methodology and delivery of Canstar’s Term Deposit 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 on a wide range of personal finance topics by media outlets such as the Australian Financial Review, news.com.au and Money Magazine.

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

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. Payment of fees for ads does not influence our Star Ratings or Awards.

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

Canstar is not providing a recommendation for your individual circumstances. We cannot and do not recommend that any particular product is suitable for you. 

We provide links to our Online Partners. These are brands that may pay Canstar a fee for referring you. Our tables default to display only our Online Partners’ products initially, you can adjust the Online Partner Filter to see all of the products available for comparison on Canstar’s website. We provide these links so that you can click through to the product provider’s website to get more information. The provision of these links does not constitute a recommendation by Canstar.

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.