Where to find a good term deposit rate

28 November 2016
Savers are warned to think outside the standard 12 month term when shopping around for a good return on their savings.

In our low interest rate environment it’s certainly challenging to find a good return on your cash savings – so be prepared to be flexible on the amount of time that you invest for and be aware that a longer term of investment won’t always give you a higher rate of return.

Often savers assume that the longer they invest their money for, the higher the return they’ll receive. But – that isn’t always the case. Sometimes longer-term deposits are paying less because financial institutions suspect that the official cash rate may be lowered again. Sometimes banks are simply wanting to attract cash deposits for a shorter term, so offer an enticing rate to get that cash through the door!

Here’s an example: of the more than 1,700 term deposit products on Canstar’s website at the moment, the highest rate being paid currently for a $25,000 personal investment is 3.20% and being being offered by the following institutions:


Institution Investment Advertised  Rate Term
G & C Mutual Bank $25,000 3.20% 60 months
Big Sky $25,000  3.20% 48 months
Bank of Melbourne $25,000 3.20% 36 – 48 months
Bank SA $25,000 3.20% 36 – 48 months
Commonwealth Bank $25,000 3.20% 36 – 47 months
NAB $25,000 3.20% 36 – 48 months
Qudos Bank $25,000 3.20% 36 months
St George $25,000 3.20% 36 – 48 months
ANZ $25,000 3.20% 24 – 36 months

Source: Canstar. Based on term deposit rates on Canstar database and an investment amount of $25,000. Terms & conditions will apply to each product.



Canstar’s analysis of the behaviour of its more than 3 million visitors per year found that while savers will shop around for the best rate, they may often be doing so within a set investment timeframe and missing out on a bonus rate.

A 12 month term deposit is a really commonly-searched investment on our site. But if investors aren’t prepared to also check what 6 month term deposits are paying, or 7 months, or 9 months, they might be missing out on some extra income!

How much do we invest?

There are quite a few cashed-up investors checking out term deposit interest rates! Based on more than 130,000 individual visitors to Canstar’s term deposit comparison tables over the past 12 months, people are looking to invest the following amounts:

  • $1,000                   0.89%
  • $10,000                22.88%
  • $25,000                10.12%
  • $50,000                8.97%
  • $75,000                3.54%
  • $100,000             22.22%
  • $250,000             32.37%

Or, why not try our term deposit calculator to work out what your expected earnings might be.

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