TERM DEPOSITS

News, info and tips to help you save smarter

Term Deposit Interest

The main feature of a term deposit is the interest you get paid at the conclusion of the term. The term deposit interest you get paid is governed by the length of time you are willing to put your money away for, and the amount of money you are able to invest.

It's not always the case that a longer term automatically equals higher term deposit interest rates. Financial institutions use term deposit interest rates as a way to attract particular lengths of investment to help their overall financial situation.

For example, they might decide they need more money invested for a period of six months rather than one year, so they might in fact offer higher term deposit interest rates for the shorter term.

Term deposit interest is generally only paid once, at the conclusion - or maturity - of the term. Some term deposit accounts credit your interest more often, but most don't. That means if you invest $50,000 for six months at a term deposit interest rate of six percent, you will receive approximately $1500 of interest paid at the conclusion of the six month term.

To check whether your best term deposit interest rate is competitive, you will need to compare your term deposit to other products in the market. This can be easily done at financial comparison websites like RateCity, where you input the amount of money and the term you're willing to invest for. You will then see a list of accounts ranked by the term deposit interest rate they pay for that amount and term.

The table below displays some of today's highest interest rates for 1 year term deposits.
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 Term Deposits 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. See the rating methodology. 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 term-deposit, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, see our terms of use for further details.