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If a short-term deposit is on your horizon, you might be considering a six-month term for growth. Find six-month term deposits at RateCity, and compare interest rates, returns, fees, and more to discover the best option for you.

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100+ term deposit products in RateCity’s database

Mark Bristow

Updated on

06 Jul, 2025

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Using our comparison tool to help find a term deposit is free. However, we might receive a commission from partners if you apply through our site.	Our team of term deposit research experts evaluates term deposits for value (including price and features), offering detailed ratings to aid your comparison.	Our seasoned editorial team has extensive experience in financial comparisons, aiming to simplify complex terms into useful information for Australians.	We review and rate term deposits from numerous providers, offering a wide selection of term deposits for informed decision making.

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Looking for a short-term investment option? If you’re confident you can afford to lock away your savings for six months or more, you could start by looking for a competitive interest rate on a six-month term deposit.

A short-term deposit could help you work out how your lifestyle may be affected by living without direct access to your savings. By the end of the six months, you’ll know if you’re ready to invest your money for a longer period of time.

What is a six-month term deposit?

As the name implies, a six-month term deposit allows you to invest your money for six months. The money you invest is your deposit, and the length of time you keep it invested with a bank, credit union or building society is the term.

During this investment period, you will not have easy access to this money, unless you’re willing to pay a penalty fee for early access. However, you will earn interest on your deposit at a fixed interest rate, growing your wealth over time.

Because you’ll know your term length and fixed interest rate, it’s possible to calculate how much interest you can earn on a term deposit ahead of time. This can be helpful when it comes to organising your budget.

When is interest paid on a six-month deposit?

When it comes to term deposits, the timing of interest payments can vary based on the provider and the specific terms of the deposit. Typically, interest can be paid monthly, quarterly, semi-annually, annually, or at maturity. However, for shorter-term deposits, some providers may only offer to pay interest at the end of the term.

Choosing more frequent interest payments could also lead to lower interest rates compared to receiving the interest at maturity, as providers may adjust the rates to account for the more frequent payouts.

What happens after the six-month period?

At the end of a six-month term deposit, when your deposit “reaches maturity”, you have several options for your money. If no action is taken, many banks will automatically roll over your deposit into a new term, potentially at a different interest rate. However, you can also choose to move your funds to another bank, reinvest in a different term deposit with the same bank, or withdraw your money.

It’s easy to leave your money where it is, especially if the end of your term deposit catches you by surprise. While banks typically notify you that you’re approaching the end of your term deposit, it’s wise to make a personal note of the date. This allows you to review your options and make informed decisions about reinvesting or withdrawing your funds, ensuring your financial strategy remains aligned with your goals.

What if I need my money earlier?

If you want to withdraw money from your term deposit before the end of your term, you’ll likely need to pay a fee. Consider checking the details of any penalty or breakage fees before you sign up for a six-month term deposit, as this amount may vary depending on the size of your investment. You may also receive less interest if you withdraw money early from a term deposit.

Many banks also require advance notice (e.g. 31 days) if you want to withdraw funds from a term deposit before maturity. So make sure to compare different term deposits and read the product disclosure statements carefully.

Savings account vs six-month term deposit

A six-month term deposit may be a secure place to park your money in the short term, offering the benefit of fixed interest rates.

While a term deposit ensures you know exactly how much interest you’ll earn, it also means your money will be locked away for the duration of the term. This means you won’t be able to access your money for six months and may need to pay a penalty for early withdrawal.

While this could be a drawback in an emergency situation, it can be helpful for someone who wants to save for a goal, especially if they have difficulty controlling impulse spending.

In comparison, savings accounts typically offer high liquidity and flexibility. You can generally deposit and withdraw funds anytime without paying penalties, making this money available for managing day-to-day expenses and emergencies.

It’s worth remembering that the interest rate on a savings account is variable, leading to unpredictable earnings. Additionally, the interest rate may be lower compared to a term deposit. Among different savings accounts, some may offer higher rates, but these could be conditional on maintaining a minimum monthly balance or limiting the number of withdrawals.

Is a six-month term deposit right for me?

A six-month term deposit can strike a good balance between earning interest and maintaining some flexibility. If you find a term deposit with a competitive interest rate, you can invest your savings and potentially reinvest the interest every six months to continue growing your wealth. And if you compare term deposits and find that there are better options for you out there, you won’t have to wait as long for your current term to end before switching.

Generally, the longer the term deposit, the higher the interest rate you may be offered. While you can likely still find good interest rates for six-month term deposits, some of the highest term deposit interest rates may only be available for term deposits of 12 months or longer. To maximise your earnings, compare the interest rates and term length of various deposits and calculate the potential interest in advance.

Some six-month special term deposits have introductory offers for new customers, such as higher interest rates. However, these special bonuses are often only available for a limited time. For example, when your six-month special term deposit reaches maturity, if you choose to roll it over for another term, you may be switched onto a lower rate. Compare different term deposits to work out which offers may best suit your situation.

Vidhu Bajaj

Personal Finance Writer

Vidhu is a Personal Finance Writer at RateCity. She has been writing about finance topics from car loans and home loans to superannuation and cryptocurrencies for over five years. Before moving into finance, Vidhu went to law school where she studied human rights law. She has a Bachelor of Law degree and has previously worked in asset finance for Clifford Chance for more than four years. During her time at Clifford Chance, she worked in the India, London and Hong Kong offices on everything from aviation to vessel finance. In her spare time you’ll find her reading the Australian Financial Review or spending time with her dog Coco.

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

What is a six-month term deposit?

When is interest paid on a six-month deposit?

What happens after the six-month period?

What if I need my money earlier?

Savings account vs six-month term deposit

A six-month term deposit may be a secure place to park your money in the short term, offering the benefit of fixed interest rates.

While this could be a drawback in an emergency situation, it can be helpful for someone who wants to save for a goal, especially if they have difficulty controlling impulse spending.

Is a six-month term deposit right for me?

Compare six-month term deposit rates

Providers we compare

Why search and compare at RateCity?

Compare term deposit options

Term deposit calculator

Term Deposit Calculator

On this page

What is a six-month term deposit?

When is interest paid on a six-month deposit?

What happens after the six-month period?

What if I need my money earlier?

Savings account vs six-month term deposit

Is a six-month term deposit right for me?

Frequently Asked Questions

Can you add money to a term deposit?

What is a term deposit rate?

Are term deposits compounded?

What is a short term deposit?

What is a term deposit account in a bank?

Share this page

Latest term deposits articles

What happens when a term deposit matures?

Is a term deposit an asset?

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Are term deposit accounts subject to capital gains tax?

Did you find this page helpful?

On this page

What is a six-month term deposit?

When is interest paid on a six-month deposit?

What happens after the six-month period?

What if I need my money earlier?

Savings account vs six-month term deposit

Is a six-month term deposit right for me?

Frequently Asked Questions

Can you add money to a term deposit?

What is a term deposit rate?

Are term deposits compounded?

What is a short term deposit?

What is a term deposit account in a bank?

Share this page

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