Compare 3 month term deposit rates

A term deposit is an investment of money with a bank or financial institution for a fixed period of time. You can grow your wealth by earning interest on your deposit at a fixed rate over the term. 

Some term deposits run for three months or less, while others have investment terms that can last for years. While many banks in Australia won’t let you withdraw your money until your deposit ‘reaches maturity’ at the end of the term, some term deposits will let you make an early withdrawal if you pay a penalty fee and give sufficient advance notice.

Term deposits can be popular with savers who prefer the security of knowing how much they should earn in interest payments over a specific period, rather than dealing with other risky investments.

• Greater flexibility than long term deposits: Choosing a shorter term deposit can mean accessing your money again sooner, and choosing whether to roll your deposit over or switch to a new term deposit deal.
• Lower risk: You can know exactly how long your money will be tied up and what your rate of return should be.
• Helps manage your spending: Once locked in, you can’t easily access your deposit until the end of the term. This means it can’t be easily spent on everyday items.
• Helps with saving: By depositing your wealth to earn interest, you can save money to spend on big-ticket items.
• Set and forget: Once your term deposit is locked in, you don’t have to do anything else until the term ends.

• Generally lower interest rates: Short term deposits often have lower interest rates than longer term deposits, so you may earn less interest on your savings.
• Less access than a savings account: Your money cannot be withdrawn during the term without being charged a penalty fee. You'll also often need to give a number of days notice in advance that you plan to make a withdrawal.
• Fixed interest rate: If variable interest rates rise, your term deposit account won’t follow suit because the rate is locked in for the length of your term.

If you can find a competitive interest rate, locking up your money for a shorter term like 90 days could let you get a decent return on your investment, while still enjoying some flexibility. For example, if you were to receive a tax refund or an inheritance, you could choose to put this money in a three-month term deposit to earn interest while you work out your long-term personal objectives or savings goals. 

Longer term deposits often have higher interest rates than shorter term deposits. You may also find that the more money you have to deposit, the higher the term deposit rates you may be offered. Some term deposit products may also require a minimum deposit size to be eligible for high interest rates.

When you’re comparing the interest rates of Australian term deposits, remember that term deposit interest rates are usually listed at the ‘per annum’ or annual rate. This means if you choose a three-month term deposit, you should earn a quarter of the interest on your deposit that you could earn over a year. 

You may also find that your 90-day term deposit offers a ‘rollover’ feature. This means that when the term ends, you can immediately have the deposit (plus the interest you’ve already earned) rolled straight into another fixed term. If the rollover is automatic, and you forget the end date of your three month term deposit, your money might be reinvested into a new term deposit even if you don’t want it to be. The rollover interest rate could be different to your original interest rate, especially if you had a 90-day term deposit with a higher introductory rate, or one that offered bonus interest. 

It’s worth comparing three-month term deposits to make sure you’re not only getting the best interest rate for your financial situation, but the right term deposit features and benefits as well. When your term deposit matures, you can also compare other options to work out if you want to roll your deposit over or switch. 

Just like longer term deposits, and money deposited in bank accounts, 90-day term deposits are guaranteed by the Australian government as part of the Financial Claims Scheme (FCS), up to $250,000 per account holder per bank.