Best Term Deposit Account Comparison

Posted April 2nd, 2010 and last modified August 21st, 2014

We are not here to tell you which term deposit account is the best, because we are a comparison site. We will therefore help you compare the top term deposit accounts in Australia, so you can choose the one which is best for you and your needs, because only you, and probably your financial advisor, know what those needs are.

Term Deposit Account Comparison

Rates last updated September 18th, 2014

3 Months p.a. 4 Months p.a. 6 Months p.a. 12 Months p.a. 24 Months p.a. 36 Months p.a. 60 Months p.a. Min Deposit
Bankwest Online Term Deposit
Bankwest Online Term Deposit
2.50% 3.40% 3.40% 3.50% 3.65% 3.80% 4.10% $1,000 OpenMore
RaboDirect Term Deposit
RaboDirect Term Deposit
3.40% 3.55% 3.60% 3.80% 3.90% 4.20% $1,000 OpenMore
St.George Term Deposit
St.George Term Deposit
2.70% 3.15% 3.15% 3.35% 3.40% 3.75% 4.15% $1,000 OpenMore
Westpac Term Deposit
Westpac Term Deposit
2.50% 3.00% 3.05% 3.30% 3.40% 3.70% 4.15% $5,000 OpenMore
ING DIRECT Term Deposit
ING DIRECT Term Deposit
3.20% 3.20% 3.60% 3.60% 3.80% $10,000 OpenMore

Features of the Best Term Deposit Accounts

Here you are able to make comparisons of some of the best deals, from some of the best Australian providers, on term deposit accounts, and these are the features you should be considering when you compare these term deposits to find one which suits you:

  • A term deposit is an account, from a bank. A term deposit is not an ordinary bank account; however, it is a type of bank account, so you will know that it is secure, and that your investment will never go down. Your interest rate is fixed, and will be calculated each day, and paid on the frequency you choose. Plus, your funds are not literally being invested by you, you are simply depositing them with the bank, for a certain term, and collecting those same funds, plus the interest earned during that time.
  • You can view and manage your account online for free. Some term deposit account providers will also allow you to complete the entire application process online too, saving you time, and meaning your funds can go to work for you as soon as possible. You will also receive internet banking access numbers and passwords, so you can log in through your term deposit provider's website at any time to see how much interest your investment has earned to date, and even make changes to how your funds are paid out or rolled over at maturity.
  • You should be free to choose the remaining features. Don't narrow your comparison of the best term deposit accounts to ones which don't let you tailor an investment solution to your needs. Instead, look for a term deposit account which will let you choose your investment amount rather than imposing a minimum investment amount, look for an account which allows you to choose any term between one month and five years, you could choose three months a four days if you like in some cases. And make sure you are happy with the choices you have regarding your interest payment options because if you would like to use your interest returns as an income during your investment term, you want them to be paid at the frequency you need.

How to Choose the Best Term Deposit Account

Understanding more about the term deposit options available is only part of the comparison process. You now need to compare the top Australian term deposits according to how well they meet your needs. To choose the best term deposit account for you:

  • Choose your best investment scenario first. Before you start comparing the term deposit accounts on offer, be clear about what terms and investment amounts you are looking for. This will help you narrow down your search, and save you time in considering accounts which don't suit your needs.
  • Compare the best rates for your choices. Be aware that the term deposit account provider with the highest interest rate on a three year term deposit, may not necessarily have the highest rate on the 12 month term you are looking for. Instead, shop for the specific terms you are looking at investing for, and find the Australian provider with the best rate for those circumstances.
  • Consider your term in relation to the interest rate cycle. Interest rates in every country will follow a cycle of high a low periods. Therefore, when investing in a fixed term deposit account, it is important to keep in mind where Australia is in its interest rate cycle, and whether rates are likely to rise significantly while your funds are invested, meaning you could miss out on a high rate in the future. Currently our official interest rates are coming out of a low period when they were dropped to emergency levels following the GFC. However, our rates have been rising for many months now and while they are still not at what is considered a standard level, around 7.00% - they don't have much further to go. Therefore, if you are considering investing for a long term in a term deposit account, speak to your financial advisor about the best way to take advantage of the rest of our upward cycle.

If you have clarified your investment needs and goals, then you are ready to start comparing the best term deposit accounts available in Australia, and you can do that by using our comparison tables here. You can also follow a secure link from our comparison tables, to each provider's website to find out more, or start an application online today.

Read more on this topic

  • Best Fixed Term Deposit Rates

    The best fixed term deposit rate can be the most important ingredient in securing your financial future or achieving your savings goal. Finding and comparing the best fixed term deposit rates is also the easiest part of your financial journey if you know where and how to look, with the help of Savings Account Finder™.

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4 Responses to Best Term Deposit Account Comparison

  1. Default Gravatar
    Sarah | July 30, 2013

    Are fixed term interest rates in an upward spiral snd should I wait, as I want to fix in for 3 years

    • Staff
      Shirley | July 30, 2013

      Hi Sarah,

      Thanks for your comment.

      Interest rates usually move with the official cash rate, so this question is probably best directed to a financial planner as we only give general advice.

      Hope this helps,

  2. Default Gravatar
    merryl | October 25, 2012

    where is australia in its interest rate cycle now?

    • Staff
      Adrian | October 25, 2012

      Hi Merryl. Thanks for your question. Keep your eyes on HomeLoanFinder. We will soon be releasing the regular interest rate predictions from the nation’s top economists. If you’ve signed up to our newsletters (you can do this by downloading our free e-book) you will get an email with the latest expert predictions.
      All the best.

Top High Interest Savings Accounts*

All of these accounts are FREE to open and require no minimum deposit. They all have easy internet banking access with no transaction fees.

Rates last updated September 18th, 2014
Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit
ING DIRECT Savings Maximiser
ING DIRECT Savings Maximiser
A high interest savings account with no account keeping fees. Earn a up to 4.00% p.a. variable rate for 4 months. 4.00% 2.75% 1.25% $0 $0 / $0 OpenMore
Bankwest Hero Saver
Bankwest Hero Saver
Earn 4.00% p.a. every month when you deposit $200 and make no withdrawals each month on balances up to $250,000. 4.00% 0.01% $0 / $0 OpenMore
HSBC Serious Saver
HSBC Serious Saver
A high interest savings account offer with ongoing variable bonus every month you don't make a withdrawal. 4.00% 2.70% 1.30% $0 $0 / $0 OpenMore
Bankwest TeleNet Saver
Bankwest TeleNet Saver
No Fees. No minimum monthly deposit. For balances up to $5,000,000. Earn a high 3.90% p.a. variable rate for 4 months. 3.90% 2.50% 1.40% $0 $0 / $1 OpenMore
RaboDirect High Interest Savings Account
RaboDirect High Interest Savings Account
A competitive ongoing rate for balances up to $250K, no minimum monthly deposit required and no fees. 3.20% 3.20% $0 $0 / $0 OpenMore
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