Lock in the best
term deposit rates

Term deposit rates in Australia vary by term length and bank. The highest rates are typically offered by smaller banks and credit unions for popular terms like 6-12 months. Rates change frequently, so use our comparison table — updated daily — to see who is currently offering the best rate for your preferred term.

A term deposit locks your money away at a fixed interest rate for a set period (e.g. 3 months to 5 years). You deposit a lump sum, earn guaranteed interest, and get your money back at maturity. The rate is locked in at the start, so it won't change even if the RBA moves rates. Early withdrawal usually incurs a penalty of reduced interest.

Term deposits are worth it if you want guaranteed returns and don't need access to your money. Savings accounts offer flexibility but rates can drop at any time. Term deposits lock in today's rate — ideal when you expect rates to fall. The trade-off is you can't withdraw early without penalty. Many people use both: a savings account for accessible funds and term deposits for money they won't need.

When your term deposit matures, most banks give you a grace period (usually 7 days) to decide what to do. You can withdraw the funds, roll over into a new term deposit at the current rate, or change the term length. If you don't act within the grace period, most banks will automatically roll it over at the current rate for the same term.

Minimum deposits vary by bank — most require between $1,000 and $5,000, though some banks accept as little as $500. A few institutions require $10,000 or more for their best rates. Use our filter to find term deposits that match your investment amount.

The best rate isn't always on the longest term. In Australia, 6-12 month term deposits often offer the highest rates as banks compete for short-term funding. Longer terms (2-5 years) may offer lower rates if the market expects rate cuts. Compare across all term lengths to find the sweet spot for your situation.

At-maturity interest payments typically offer a slightly higher rate because the bank holds your interest longer. Monthly payments give you regular income but at a marginally lower rate. Choose monthly if you need the cash flow (e.g. retirees), or at-maturity if you want to maximise your return.

Most banks allow early withdrawal but apply a penalty — usually a reduced interest rate or forfeiting a portion of interest earned. The penalty varies by bank and how early you break the term. If you think you might need access to your money, consider a shorter term or keeping some funds in a savings account instead.