Term Deposit Finder™ – Compare Term Deposit Accounts

Rates and Fees verified correct on February 27th, 2015
Term Deposit

Future proof your savings against interest rate movements.

Term deposits could be great for those who are serious about saving. A term deposit is a form of fixed savings account where you start by depositing funds into your account. While your funds are in the term deposit account they will accumulate interest. After your term is up, you can withdraw your money and the interest you earned. Most banks, credit unions and building societies offer these accounts, making it relatively easy to establish one and start saving.It's important to note that as soon as you've locked away your funds, there could be a penalty for accessing your funds before the fixed term. Unless you're entirely sure that you'd like to commit to a term deposit, you may be interested in a high interest savings account instead, as they're more flexible.

Term deposit rates comparison

Rates last updated February 27th, 2015
$
3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. 60 Mths p.a. Min Deposit Interest
Earned
ME Bank Term Deposit
ME Bank Term Deposit
3.00% 3.00% 3.60% 3.50% 3.60% 3.70% 4.00% $1,000 Open More
ING DIRECT Term Deposit
ING DIRECT Term Deposit
2.80% 2.80% 3.10% 3.10% 3.30% $10,000 Open More
Bankwest Online Term Deposit
Bankwest Online Term Deposit
3.00% 2.25% 3.00% 3.20% 3.20% 3.25% 3.35% $1,000 Open More
Westpac Term Deposit
Westpac Term Deposit
2.25% 2.55% 2.25% 2.70% 2.75% 2.75% 3.20% $5,000 Open More
St.George Term Deposit
St.George Term Deposit
2.25% 2.60% 2.25% 2.70% 2.75% 2.75% 3.20% $1,000 Open More
Bank of Melbourne Term Deposit Account
Bank of Melbourne Term Deposit Account
2.25% 2.60% 2.25% 2.70% 2.75% 2.75% 3.20% $1,000 Open More
BankSA Term Deposit
BankSA Term Deposit
2.25% 2.60% 2.25% 2.70% 2.75% 2.75% 3.20% $1,000 Open More

Rates are displayed for the terms and minimum deposit sizes listed in the table above. The rate you receive could vary depending on your deposit size and interest payment frequency.

Business term deposit rates comparison

Rates last updated February 27th, 2015
$
3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. 60 Mths p.a. Min Deposit Interest
Earned
ING DIRECT Business Term Deposit
ING DIRECT Business Term Deposit
2.80% 2.80% 3.10% 3.10% 3.30% $10,000 Open More

High interest saving accounts comparison

Rates last updated February 27th, 2015
Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit
ING DIRECT Savings Maximiser
Earn 4.00% p.a. when you open an Orange Everyday Account and deposit at least $1,000 into it each month from an external bank account.
4.00% 2.75% $0 $0 / $0 Open More
Bankwest Hero Saver
Earn 3.75% p.a. every month when you deposit $200 and make no withdrawals each month on balances up to $250,000. Available on balances up to $250k.
3.75% 0.01% $0 $0 / $0 Open More
ME Bank Online Savings Account
Apply for an ME Bank Online Savings Account and link it to an ME Bank Transaction account to earn a high 3.85% p.a. variable rate for 4 months. Limited time 5% cashback offer.
3.85% 2.50% 1.35% $0 $0 / $0 Open More
HSBC Serious Saver
Achieve your savings goals with this great offer from HSBC with high ongoing rate for 4 months for opening balances up to $1000000. Plus no minimum monthly deposit needed.
3.30% 2.45% 0.85% $0 $0 / $0 Open More
ANZ Online Saver
Open an ANZ Online Saver and earn a competitive interest rate up to 4.10% p.a.
3.25% 2.25% 1.00% $0 $0 / $0 Open More

What is a term deposit?

A term deposit is a relatively low-risk form of investment. It’s a form of savings account that usually has a higher interest rate than a regular savings account. Before you enter into a term deposit, you will get a fixed interest rate for the duration of your term deposit. Term deposits are a great way to save for a particular goal, whether it be a holiday or a car, allowing you to put your money away where you can’t touch it but you can gain interest at the same time.


How do they work?

Term deposits are typically locked in for periods of between one and five years. You have a fixed interest rate locked in for security over the life of your deposit. After your term is over, you can withdraw your money (principal and interest) or reinvest it back into a term deposit. However, if you withdraw your funds from your term deposit early you will be hit with a penalty, so it’s best to ensure you won’t need to withdraw your money during the term. Term deposits also tend to have a minimum you can invest. Most banks will require you to deposit at least $1,000.


Michelle opens a term deposit

Title

Michelle has just started working full-time and she wants to start saving for a home. She’s always dipping into her savings by making impulse purchases on things she doesn’t need and wants to take the temptation away. Michelle is currently renting and knows she probably won’t have the money to buy her own house until at least five years from now. She realises she needs another $20,000 for her deposit but she knows she will struggle to get there with her current spending habits.

Michelle starts doing her research and realises that a term deposit could work well for her. She checks out a few banks and financial institutions to see what her options are. Michelle knows the more money she puts into her term deposit and the longer she can keep it in there for, the more she will get from it. Michelle compares all the term deposits available and finds one with a high interest rate. Michelle puts in $10,000, the majority of her current savings but an amount which leaves enough money in her account for everyday expenses. She works out how much money she can get through her term deposit and selects an account with a five-year term length. Opening up the term deposit meant that Michelle didn’t throw away her money, didn’t have to do anything during the term and is now closer than ever to having enough for a deposit on a home.

Back To Top


How to compare term deposit accounts

Most Australian financial institutions will offer a form of term deposit account. Many will even offer more than one type of term deposit. This is also why you need to know what you are looking for in your comparisons, to ensure that you make your comparisons as easy as possible, and you track down the account which is right for you.

  • Decide on your term and then compare term deposits.
    Some financial institutions want to attract long term term deposits, and others prefer to facilitate short term investments. Therefore, before you choose a term deposit, you need to choose your term as one financial institution may offer 4.50% on a six month investment, where another will offer you 5.50% for that same term.
  • Compare based on your investment amount.
    This will allow you to make comparisons on a level playing field because many term deposit providers will tier their interest rates based on the deposit amount. Therefore a six month term deposit of $5,000 may earn 4.50% while a six month investment of $20,000 may earn 5.50% and you can save a lot of time in your comparisons by comparing based on what you can afford to invest.
  • Find out about fees.
    You don't want to plan for a big return on your term deposit investment only to find that there are monthly fees, fees to open the account or fees at the end of the term. It is possible to find a term deposit account without any of these fees so it’s worth making the comparisons. While you are comparing term deposit account fees, also find out what you are charged to leave the term early, if an emergency does arise and you need access to your funds sooner than expected, some financial institutions will charge you a percentage of the investment, where others will have a set cancellation fee.
  • Consider an online term deposit account.
    Saving and investing your funds is something you have to do amongst all of your other commitments and if setting up and managing a term deposit account costs you time, is it really worth the returns? Instead choose an online term deposit account which can be opened online, where the statements can be viewed online or emailed to you and you can reinvest or cancel your investment through internet banking.

Pros and cons

Pros


  • Stops you from accessing your funds.Many savers complain about the temptation of using their money to make impulse purchases. With a term deposit, your funds are locked away so you won't do any unnecessary spending.
  • Locked-in rate.Your interest rate is locked in for the duration of your term, providing you with much-needed security. You can also work out how much your deposit will grow and determine how long you need to keep your deposit locked up to achieve your financial goals.
  • Plenty of choice.Term deposits allow you to select the length of your term and select how much you want to put into your account (as long as you meet the minimum amount). This will help you tailor your term deposit to help you reach your goal.
  • Possibility of negotiating.If you are investing a large amount of money, you can sometimes negotiate with your financial institution for a better rate.
  • Government guarantee.Term deposits taken out with an Australian Deposit-taking Institution (ADI) up to the value of $250,000 are guaranteed by the Australian government.

Cons


    • Penalties for withdrawing.Sometimes unexpected expenses come up in life and you need money immediately. Term deposits usually enforce a penalty for withdrawing your funds and you will lose some of your interest earned.
    • Lack of flexibility.Some online savings accounts can offer you an equal or higher interest rate than term deposits and have a lot more flexibility. These online savings accounts often allow you to withdraw whenever you need to without penalty.

What are the risks involved?

It’s important to ensure you don’t go beyond your means and don’t deposit more money than you can afford. To achieve the full potential of term deposits, it’s essential you don’t withdraw before your term is over—so only put in what you know you can afford. It’s also important that you compare the other options out there, such as online savings accounts, because they can sometimes offer you a better rate with more flexibility. Term deposits aren’t for everyone, so make sure they suit your needs before committing.


Frequently asked questions

Do term deposits have fees?

Some term deposits may charge you account-keeping fees. Each term deposit account is different, so make sure you compare the fees charged on each offering.

Can I get a variable rate for my term deposit?

No, term deposits only have fixed rates. Online saving accounts, however, do have variable rates available.

What happens if I need access to my money before the term ends?

This will depend on your institution. Some banks will reduce the interest you earn, while others might charge a fee. Check out our guide to cancellation costs for more information.

Do I have to do anything during my term deposit?

You don’t have to do anything during your term deposit. Your term deposit will be completely taken care of by your financial institution and you don’t need any investment experience to open a term deposit.

Back To Top


Read more on this topic

  • Term deposits with loyalty bonuses

    Term deposits with loyalty bonuses are a great low-risk investment option. The fixed interest rates guarantee you to accumulate the same interest throughout the life of your account. The additional bonus you can get by rolling over your funds into a new term deposit is a great incentive for investing, too.

  • Term Deposit Laddering Strategy Explained [Infographic]

    What is the term deposit laddering strategy? The term deposit ladder is an investment strategy whereby the investment is broken down into multiple long-term TDs to take advantage of the higher rates. Why choose a term deposit ladder? Higher interest return Ability to pick the highest TD rate for each deposit portfolio Safer investment through […]

  • How To Choose The Best Deposit Account

    Banks will use a variety of ways to get you in their doors, and some of these can be very deceptive. You want to look out for practices such as introductory rates or minimum balances. For all the information, read on to see what to look out for.

  • Should You Avoid Term Deposits?

    Term deposits are a secure and easy to manage way to invest savings, regardless of the returns being relatively lower than other forms of investments. Why shouldn’t I get a term deposit account? Term deposits involve fixing an interest rate to apply for a period of time on your investment. Interest rates are at an […]

  • Investing With Term Deposits – Know The Benefits!

    Term deposits are a great investment strategy if you’ve got decent income and you need to sock some money away for a set period of time. You can’t lose money, you’re guaranteed a certain interest rate, and you won’t be able to spend it for the term of the deposit. It’s a great way to save, especially for those who tend to dip into their savings. Learn how…



Was this content helpful to you? No  Yes

This page was last modified on 20 January 2015 at 13:17.

Ask a Question

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

89 Responses to Term Deposit Finder™ – Compare Term Deposit Accounts

  1. Default Gravatar
    John | February 23, 2015

    Best interest rate on savings with deposit of $1500000

    • Staff
      Shirley | February 23, 2015

      Hi John W,

      Thanks for your question.

      You can sort through the interest rate by clicking on the terms of your choice provided in the blue comparison table. This will automatically sort the rates in ascending order for you.

      Cheers,
      Shirley

  2. Default Gravatar
    christine | February 19, 2015

    I open a term deposit last month with 8,ooo.oo but now I need to get 2,ooo.oo out how can I and put it in my other bank account with out going to the bank

  3. Default Gravatar
    Stan | February 11, 2015

    Looking for best rates for $50000-75000

    • Staff
      Shirley | February 12, 2015

      Hi Stan,

      Thanks for your question.

      You can sort through the interest rate by clicking on the terms of your choice provided in the blue comparison table. This will automatically sort the rates in ascending order for you.

      Cheers,
      Shirley

  4. Default Gravatar
    kez | January 19, 2015

    Looking for best rates for $500,000

    • Staff
      Marc | January 19, 2015

      Hi Kez,
      thanks for the question.

      I would recommend comparing term deposit accounts here until you find one which you think has an attractive mix of features, and then contacting the bank directly to find out exactly what rate you would receive for your more substantial deposit of $500,000. This is because institutions can often offer different rates for higher deposit amounts.

      I hope this helps,
      Marc.

  5. Default Gravatar
    Rosemary | January 17, 2015

    How much interest on two hundred thousand for one year.

    • Staff
      Marc | January 19, 2015

      Hi Rosemary,
      thanks for the question.

      You can see the different term deposit rates available from a range of different institutions below. You might also want to try contacting savings institutions directly, as they may offer different rates for a more substantial deposit as you have.

      I hope this helps,
      Marc.

  6. Default Gravatar
    Thea | January 15, 2015

    I have not been able to read any articles about CME Capital PTY Ltd. Is it a safe institution to invest with?

    • Staff
      Shirley | January 16, 2015

      Hi Thea,

      Thanks for your question.

      CME Capital Pty Ltd has been deregistered with ASIC, though CME Capital Australia Pty Ltd is currently registered.

      It’s advisable for you to speak to ASIC directly regarding the safety of this institution.

      Cheers,
      Shirley

  7. Default Gravatar
    Geoffrey | December 27, 2014

    Hello i have found the best interest rate going today example for 10 years to be currently at 9.55 per cent investing $500,000. The investment is Fixed term and with a private company called CME CAPITOL they are a business company registered in Australia and sound too good to be true. Can you advise or have any information which can give me a deeper look into , as this is a great rate but at the same time do not want to take any large risk.

    • Staff
      Shirley | December 29, 2014

      Hi Geoffrey,

      Thanks for your question. Please note that we can only provide general advice.

      CME Capital Australia is registered with ASIC Connect – you can view more details here.

      It’s advisable for you to speak to your financial advisor about the risks and reliability regarding any investments that you intend to make.

      Cheers,
      Shirley

  8. Default Gravatar
    ray | December 13, 2014

    is Amicus invest reliable

    • Staff
      Shirley | December 15, 2014

      Hi Ray,

      Thanks for your question.

      You can search for Amicus Invest’s name on ASIC’s Australian Financial Services licensee register to see if they are licensed.

      If the company or person is not licensed, it’s advisable to not deal with them and report them to ASIC.

      Cheers,
      Shirley

  9. Default Gravatar
    Duncan | December 4, 2014

    I am due to be receiving my long service leave and additional leave pay-out at the conclusion of the year. I may require some as a buffer for finding a replacement job, however I was wondering what might be the best use of this money?

    My thoughts are to use a series of 3 month term deposits of about $5000 each, 1 month apart. This would provide me with that lump sum + interest each month. If not needed I cold roll this over for another 3 months I imagine.

    However I was also thinking about Annuities, and how these work? Do these need to be paid for upfront for them to pay in the instalments they provide? I am not really sure how these work, could you advise?

    Just looking for the best, but safest use for my money.

    Thanks.

    • Staff
      Shirley | December 4, 2014

      Hi Duncan,

      Thanks for your question.

      Please note that finder.com.au can only provide general advice regarding the products we display and we don’t recommend specific products, services or providers.

      An annuity is a product that issues a series of cash flows of equal amounts, equally spaced over time.

      There are many different types of annuities available in Australia, so it’s best to speak to your trusted financial advisor regarding which product is best for you.

      Cheers,
      Shirley

  10. Default Gravatar
    John | November 24, 2014

    Do the joint accounts apply to joint trustees of a super fund

    • Staff
      Shirley | November 25, 2014

      Hi John,

      Thanks for your question.

      Please note that the accounts on this page are all personal accounts. If you’d like, we have an SMSF section where joint trustees are possible with a joint account. It’s advisable that you speak to the financial institution beforehand to confirm this.

      All the best,
      Shirley

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 February 27th, 2015
Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit
ING DIRECT Savings Maximiser
Earn 4.00% p.a. when you open an Orange Everyday Account and deposit at least $1,000 into it each month from an external bank account.
4.00% 2.75% $0 $0 / $0 Open More
Bankwest Hero Saver
Earn 3.75% p.a. every month when you deposit $200 and make no withdrawals each month on balances up to $250,000. Available on balances up to $250k.
3.75% 0.01% $0 $0 / $0 Open More
ME Bank Online Savings Account
Earn 3.85% p.a. for 4 months on balances up to $250,000 when linked to a ME Bank Transaction Account. Plus no monthly account-keeping fees.
3.85% 2.50% 1.35% $0 $0 / $0 Open More
HSBC Serious Saver
A high interest savings account offer with ongoing variable bonus every month you don't make a withdrawal.
3.30% 2.45% 0.85% $0 $0 / $0 Open More
Ask a question
feedback

Win $500!

Tell us what you think about finder.com.au

Take our quick survey to win T&Cs apply