2 Year Term Deposit Interest Rates

Why a 2 Year Term Deposit?

For a longer-term savings goal look into investing in a 2 year term deposit with competitive interest rates.

The highest rates for any term deposit product can generally be found around 1 year terms as interest rates generally decrease with terms exceeding 1 year. However, if you are a disciplined saver, have a relatively large deposit and are planning to use your interest earnings as a regular source of income than a 2 year term deposit could be ideal.

For a quick rate comparison take a look at some of today's best rates displayed on our term deposit tables and adjust the setting to select your desired variables such as term.

What to look for with a Term Deposit

Features to pay attention to when choosing the best term deposit:

  • Nominal interest rate - The advertised interest rate
  • Effective interest rate - The actual interest rate including compounding effect of payment frequency
  • Early withdrawal fees - A penalty fee if you withdraw funds before the term ends
  • Opening deposit - Some banks and institutions set a minimum requirement of $1000 for opening a term deposit account. Smaller deposit amounts are desired less by institutions however some
  • Automatic renewals - Most term deposit products have an automatic renewal clause whereby your deposit is rolled into another savings account if you don't give instructions to close your account before the end of the term
  • Product disclosure statement - If you are unsure about some of the features of a product then it's always a good idea to read the fine print. A product disclosure statement (PDS) will probably be able to answer any questions you have about your new term deposit account

To find some of the best term deposit rates in Australia use RateCity.com.au - Australia's leading financial comparison service.

This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about products from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers and may not compare all features relevant to you, for further details refer to our FSCG. The rating shown is only one factor to take into account when considering these products. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a product, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. See our terms of use for further details. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.