Compare high interest term deposits
Compare high interest term deposits and calculate returns, fees and more
While some people love high-risk, high-reward investments, others prefer lower-risk options. High-interest term deposits are investments that can provide rewards while helping to minimise risk.
If you’re seeking investment options that are safer and more secure than some high-risk investments, then high-interest term deposits might be worth considering.
Find and compare high interest term deposits
Product | Max rate | Min. deposit | Company | Interest rate | Next rate increased | Features | Real Time Rating™ | Go to site | ||
|---|---|---|---|---|---|---|---|---|---|---|
1.00% p.a for 24 months | $5,000 |  | 0.65% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | Watch your savings grow with this competitive term deposit from MyState with $0 establishment or account keeping fees. More details | Highlighted | ||||
0.90% p.a for 24 months | $5,000 |  | 0.70% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | A term deposit offering with a range of fixed term periods and competitive interest rates. Designed to help everyday Aussies grow their savings. More details | |||||
0.85% p.a for 36 months | $50,000 |  | 0.50% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | Enjoy the security of locking in a fixed interest rate, with a competitive term deposit offer from Delphi Bank. More details | |||||
0.70% p.a for 3 months | $10,000 |  | 0.70% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
0.60% p.a for 12 months | $25,000 |  | 0.55% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
0.85% p.a for 10 months | $5,000 |  | 0.65% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
0.55% p.a for 60 months | $5,000 | | 0.20% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
1.15% p.a for 60 months | $50,000 |  | 1.05% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
0.80% p.a for 3 months | $50,000 |  | 0.80% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
0.90% p.a for 3 months | $50,000 | | 0.90% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
0.90% p.a for 3 months | $50,000 | | 0.90% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
1.00% p.a for 12 months | $5,000 |  | 0.90% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
1.10% p.a for 3 months | $5,000 |  | 1.00% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
1.05% p.a for 24 months | $25,000 |  | 0.65% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
0.90% p.a for 24 months | $5,000 |  | 0.55% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
0.95% p.a for 12 months | $500 |  | 0.85% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
0.85% p.a for 24 months | $1,000 |  | 0.55% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
1.00% p.a for 7 months | $50,000 |  | 0.85% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
1.05% p.a for 7 months | $1,000 | | 0.95% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||||
0.85% p.a for 24 months | $1,000 |  | 0.55% p.a for 6 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details |
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What’s the difference between a term deposit and a savings account?
Term deposits and savings accounts have a lot in common. Both let you deposit your money in a bank or other Authorised Deposit-taking Institution (ADI), and both let you earn interest on your savings over time. The money you deposit (up to $250,000) is also protected under the Australian Government Guarantee Scheme, whether you have a savings account or a term deposit.
However, the two also have their differences, especially when it comes to accessing your money. With a savings account, you can deposit and withdraw money as you please (though making withdrawals could mean missing out on bonus interest with some accounts). With a term deposit, you put a pre-set amount of money in the bank, which you can’t add to or withdraw until it “reaches maturity” at the end of the term. If you want to access your funds early, you’ll likely need to pay a penalty fee, and you may receive less interest.
What are the most important features of high-interest term deposits?
As the name suggests, one of the most important features of a high-interest term deposit is its fixed interest rate. Many Australians search for the term deposits offering the best interest rates because this will affect how much interest they can earn on their investment. Because a fixed interest rate won’t change after the term has begun, it’s possible to calculate ahead of time how much interest you can earn on your term deposit.
Apart from a high interest rate, there are other features you can look for in a term deposit, such as the payment frequency. This refers to how often interest is paid on your investment, with common options including annually, quarterly, monthly or at maturity. This interest may be paid into a separate bank account to help support your household budget, or it may be added to your term deposit to earn compound interest.
Another feature to keep your eye out for is partial withdrawal allowance. Some banks allow you to withdraw a portion of your money before the end of your term without being charged a penalty fee. If you suspect you may need to withdraw some of your deposit during its term, you might consider choosing a term deposit with partial withdrawal allowance.
Keep in mind that term deposits offering more features and flexibility may not offer the highest interest rates. It’s important to compare your options and calculate how much interest you could earn on your deposit before making your choice.
How can you make sure you’re getting a high interest rate?
Generally, the more money you can deposit, and the longer the term you agree to, the higher the rate of interest you can earn with a term deposit. High interest term deposit deals may have higher minimum balances and longer minimum term lengths in their eligibility criteria. Of course, a longer term also means having to wait longer to access the money you’ve deposited and the interest you’ve earned.
One of the best ways to work out if you’re getting a good interest rate is to compare term deposits. By looking at a range of different term deposit options from a variety of banks, you can not only work out which ones offer the best rates for you, but which ones also offer the features and benefits that should suit your needs.
It’s important to remember that even though the fixed interest rate on your term deposit shouldn’t change during your agreed term, the financial market is always changing, with average rates moving higher and lower. An excellent interest rate today might be entirely different to a great interest rate a year from now.
When your term deposit approaches maturity, it may be worth doing some more research to work out if you’d prefer to roll your savings over in the same term deposit, or switch to another option. Your ADI may offer other term deposits with higher interest rates, or you may decide that switching to another bank or ADI is a better choice for you. You may want to let your ADI know your decision before the end of your term, as some term deposits feature automatic rollover at maturity – if you don’t select an option in time, your deposit could automatically roll over into a new term at the same rate.
How can I increase my term deposit earnings?
It can sometimes seem like you won’t have much control of your term deposit after your money is locked away. If you want to maximise your interest earnings, it’s important to do your research before you apply for a term deposit.
One way to maximise your earnings without too much effort is to find the highest interest rate possible by comparing different term deposits.
Another is to choose a special term deposit that offers compounded interest rather than simple interest. Compounded interest means that the interest you earn on your original deposit is reinvested, so you can earn interest on your interest, and potentially make more money in less time. However, term deposits that offer compound interest may not have the highest interest rates.
Keep in mind that the term deposit offering the highest interest rate may not always be the best option for your finances. For example, longer term deposits often have higher interest rates, but you’ll need to wait longer until you can easily access your money again, which may not be suitable for everybody.
What do I need to apply for a high-interest term deposit?
Applying for a high-interest term deposit can be similar to applying for a bank account.
First, you’ll need to provide your name, address and phone numbers, and verify your identity using your driver’s licence number or identification card. If your term deposit allows more than one person to hold the account, you’ll also need their name and personal details.
You may also need to supply your tax file number, so your bank can withhold the appropriate amount of tax.
You should also provide your bank account details, so you bank knows where to transfer your money at the end of the term.
Nick Bendel
Property Personal Finance Writer
A property and personal finance writer, Nick Bendel covers property, loans, credit cards, superannuation, and other bank products. Nick has previously written for The Adviser, Mortgage Business, Lifehacker, Business Insider, Yahoo Finance, and InvestorDaily, and loves getting elbow-deep in the latest ABS, APRA and RBA data.
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Frequently asked questions
How do you calculate term deposit interest?
If you’re ready to open a term deposit, there’s a lot you’ve already figured out. You’ve decided on the length of your term and found the best interest rate, but there’s something you still might be wondering. How do you calculate term deposit interest?
One of the easiest ways to calculate term deposit interest is by using a term deposits calculator. However, you can also estimate your total earnings on your own.
A fixed interest rate signifies what percentage of your original balance your term deposit will earn annually. For example, a deposit of $1,000 at an interest rate of 3 per cent will earn three per cent of $1,000 annually – meaning you’ll earn $30 of interest each year.
You can estimate your interest using three variables. Multiply together your deposit amount, interest rate, and term length and you’ll approximate the interest a deposit will earn. For example, if you invest in a term deposit for $5,000 at an interest rate of 3 per cent for two years, your interest would total $300.
What is the best interest rate for a fixed term deposit?
The best interest rate for a fixed term deposit changes all the time, as interest rates move up and down and banks compete with each other to win market share.
To find the best interest rate for a fixed term deposit, it’s helpful to understand how interest rates are applied to term deposits.
There are three factors that determine the fixed interest of term deposits:
- The size of your deposit
- The duration of the term
- The frequency of interest paid
Term deposits vary in duration from one month to five years or more. Interest rates generally work on a sliding scale; shorter terms get a lower rate, longer terms get a higher rate.
Here are a couple of examples of how interest is applied to term deposits.
- A $10,000 term deposit taken out over 12 months, with interest paid at maturity, might receive a fixed interest rate of 2.20 per cent.
- A $10,000 fixed term deposit taken out over 12 months, with interest paid quarterly, might receive a fixed interest rate of 2.00 per cent.
Using the size of your deposit, the duration of the term and how often you want to be paid interest, you can shop around for the best interest rate for a fixed term deposit.
How often do term deposit rates change?
One of the advantages of a term deposit is that this type of investment enjoys a fixed interest rate. This means that the interest rate that you have signed up for will not change during the period of your term deposit, regardless of rising or falling market interest rates.
However, it is important to be aware of the end of your term deposit. Once your term ends, whether this is in three months or three years, many banks will default to rolling over your deposit into a new term, sometimes with a lower interest rate. Once your term deposit rolls over, you will then be locked into this new fixed interest rate for another term.
Make sure to use the grace period at the end of your term to your advantage. Shop around for a competitive interest rate and reinvest your money accordingly.
How safe is a term deposit?
You may have heard that a term deposit is a type of investment, different to a traditional savings account. All investment comes with inherent risk, so it’s important to know how safe a term deposit is before committing.
Term deposits offer a fixed interest rate which is guaranteed, so you do not have to worry about rising or falling interest rates when investing. You can add up how much interest you will earn over your fixed term, and this will be paid into your account per the conditions of your term deposit.
Term deposits with authorised deposit-taking institutions are also guaranteed for up to $250,000 by the Financial Claims Scheme, so you don’t have to worry about the bank collapsing either.
The only inherent risk of a term deposit is if you may need to break it early. If this happens, you will need to pay a breakage fee and possibly sacrifice some of your interest as a penalty. But if you know you can invest a certain amount of money for a fixed period of time, you can rest assured that a term deposit is a safe investment option.
How long is a term deposit?
A term deposit refers to when you lock your money in an account for a certain period of time and at a specified interest rate. You will not be able to access your money for the length of the agreed term without incurring a penalty fee.
A long term deposit generally refers to a term deposit that lasts for more than 12 months – which in some cases may be as long as 10 years.
Usually, the longer you store your money, the better the interest rate you’ll get, so a long term deposit will tend to pay higher interest than a short term deposit.
At the end of the term, you can roll over the money (plus the interest you’ve made during the term), or you can withdraw it all.
Which bank has the best term deposit rates?
If you’ve been shopping around for a term deposit, you might be wondering which bank has the best term deposit rates.
Term deposit rates will generally be affected by the amount you choose to deposit and whether you opt for a short or long term deposit.
Longer term deposits tend to have higher interest rates than shorter terms. The trade-off for earning a higher interest rate on your term deposit is that you can’t access your funds for the duration of the term deposit.
When comparing which bank has the best term deposit rates, it pays to do your research and compare how your funds will fare over the short and long term.
Unlike home loans or savings accounts which give you the option of fixed or variable rates, term deposits are always fixed, which means you get a guaranteed amount of interest over the term of the deposit.
What is a term deposit?
A term deposit is an investment savings account. A term deposit usually pays a higher rate of interest than a regular savings account, with the interest rate fixed for the term (or duration) of the deposit.
You can open a term deposit account for one month or up to five years depending on your investment goal, and invest as little as $500 to start earning a profit.
With a term deposit, you get to decide how much you want to invest (the principal or deposit), for how long (the term or duration) and the frequency of interest payments.
A term deposit represents a secure form of investment, unlike trading in shares or purchasing real estate. And a term deposit up to $250,000 is protected by the government guarantee.
Can you add money to a term deposit?
When you open a term deposit, you agree to lock your money away for a set period and earn a fixed amount of interest during that period.
Where everyday transaction accounts give you the flexibility to deposit and withdraw funds as frequently as you like, term deposits trade flexibility for higher interest rates.
Once your funds are deposited in a term deposit, they’re fixed for the length of the term, meaning you can’t add additional funds midway through the term.
When the term deposit matures, you may have the option to add additional funds and roll the funds over for another term, or you may choose to withdraw the money at that point.
If you have extra funds to invest, you could consider opening an additional short term deposit account or a high-interest savings account.
It’s worth noting that you can withdraw the funds midway through the term, but a penalty is likely to apply.
How do term deposits work?
Term deposits are flexible, low-risk, and earn you interest over time. But before you apply to open a term deposit, you might be wondering: how do term deposits work?
A term deposit is an agreement you make with a financial institution. This agreement will specify a certain amount of money that you will give the bank for a certain amount of time. In return, you’ll earn a fixed amount of interest on your deposit throughout your term.
Term deposits work as an exchange between a financial institution and an individual. You can think of your term deposit as a loan to the bank. Because you’ve loaned the bank your money, they’re willing to pay you interest on your deposit.
Is term deposit interest taxable?
The interest that you earn from your term deposit is considered taxable income. Because your term deposit interest is taxable, it should be disclosed on your annual tax return.
It’s important to note that circumstances may differ depending on whether you provided the account holder with your tax file number (TFN). If you did not supply your bank or other financial institution with your TFN, they are typically required to withhold tax from your interest earnings.
If you’ve invested in a deposit that lasts longer than 12 months, you’ll need to claim your earned interest in the year that you received it. For example, if you receive interest monthly, you’ll need to claim your earnings at the end of the financial year. However, if you only receive interest at maturity, you should claim your earnings in the year that you received the lump sum of interest.
What is a term deposit rate?
The term deposit rate is the agreed interest rate for your term deposit. It remains fixed for the term of the deposit.
For example, if you deposit $5,000 for 12 months at a 2.5 per cent term deposit rate, that 2.5 per cent term deposit rate will be fixed for the entire 12 months and won’t change until the term matures.
The term deposit rate is one of the most important factors to consider when comparing your term deposit options. The general rule of thumb is that the longer the term, the higher the term deposit rate.
Term deposits are a popular type of investment because they’re safe and provide reliable returns.
The return you get on your term deposit will be determined by the amount you initially invest, the amount of time you choose to invest it for, and the term deposit rate.
Are term deposits compounded?
Term deposits can be compounded, depending on what you choose to do with the interest.
There are two ways to receive interest from a term deposit: either a lump sum at maturity; or paid on a regular basis, usually monthly. If you get your interest paid regularly, you can get it paid into a transaction account, or back into the term deposit account. By using this second option, you’re getting interest paid on your interest. In other words, it’s compounding.
Having the money paid into a transaction account means you can access it for your day-to-day spending, while compounding the interest means you get a better overall return on your investment. Both have advantages, depending on your needs, but be aware that some term deposit accounts that pay interest regularly may offer a lower interest rate to offset the effect of compounding.
Are term deposits worth it?
Ultimately, whether term deposits will work for you will depend on your particular financial needs.
Term deposits can be a great way to get your money working for you. By locking it away and forgetting about it for a period of time, it can earn interest for you. If you have the interest paid on a regular basis, rather than at maturity, you can either have some extra spending money or you can reinvest it into the term deposit to compound.
Of course, locking your money in a term deposit means you cannot access it for the length of the term, without paying a penalty for early withdrawal. This can remove the temptation to spend the money, while it also earns interest.
What is a fixed term deposit?
A fixed term deposit is a safe and stable way to earn a fixed return on your cash investment.
Fixed term deposits are essentially bank accounts where you lock your money away for a fixed period and earn a fixed interest rate on those funds.
Fixed term deposits can be both short term, which is usually anything under 12 months, or long term, which can be up to 10 years.
Once the fixed term has ended, the bank or financial institution will give you back your initial deposit plus any interest you earn during the fixed term period.
Depending on the type of fixed term deposit account you open, when the term matures, you may have the option of rolling the funds over for a new term or withdrawing the funds.
Unlike other savings or transaction accounts which offer variable interest rates and flexible features, fixed term deposits offer fixed interest rates, which means the amount of interest you earn will remain the same during the term of the deposit.
What is a term deposit account in a bank?
A term deposit account in a bank is a type of investment where you lock away a portion of your savings for a fixed period in return for earning a set amount of interest.
Opening a term deposit account in a bank is a safe way to earn a stable return on your investment of cash.
Term deposit accounts can be a good way to give your savings an extra boost without the need to actively watch or manage your funds during the term of the deposit.
Term deposit accounts in a bank are a popular type of investment because they’re safe and there’s very little risk that you could lose your money.
If you make a term deposit of up to $250,000 with an authorised deposit-taking institution, it’s guaranteed by the Australian government, which means there’s virtually no risk of losing your money and you’re guaranteed return.
Interest rates vary depending on the length of the term, the amount you deposit and the bank you choose.
Can I negotiate a fixed term deposit rate with the bank?
“Can I negotiate a fixed term deposit rate with the bank?” you may be wondering.
Many banks welcome negotiation when it comes to term deposit rates, especially with deposits of over $100,000. Even if your deposit is lower than $100,000, it may be worth a discussion with your bank.
Negotiating with your bank could secure you a higher fixed rate, which will earn you extra interest over your term. You may also discover bonuses or special offers you can acquire through your bank.
Securing the highest interest rate possible is the key to making the most of your term deposit. You may have compared deposits online or discussed your options with a financial adviser, but you also might be wondering about negotiation in order to get a better rate.
Can you take a term deposit out early?
If you are considering a term deposit, you may be wondering if you can take out your money early. It is possible to break a term deposit, but it will cost you both time and money.
Many banks require 31 days’ notice if you wish to break a term deposit. This means that if you need money urgently for an unexpected expense, it may not be worth breaking your term deposit. Make sure to read the fine print to see if this wait period applies to the term deposit you are considering.
You will also most likely need to pay a breakage fee in order to access your funds, and you may also incur a reduced amount of interest. All of this information – including the fee amounts – should be available in the term deposit product disclosure statement (PDS), so ensure that you read the fine print before committing.
Will term deposit rates increase?
While there’s no definite way to predict when term deposit rates will increase, it may help to understand some of the factors that influence term deposit interest rates.
The official cash rate is set by the Reserve Bank of Australia (RBA). When the RBA either increases or cuts interest rates, it influences the interest rates set by banks.
The other factor that determines when term deposit rates will rise is competition between banks. Banks may increase their term deposit rates or offer higher rates as an incentive to win new customers over or increase their market share.
Term deposit interest rates will also change, depending on how much you invest and how long you invest.
What is the best term deposit rate in Australia?
If you’re ready to add a term deposit to your financial strategy, there’s likely one question on your mind: what is the best term deposit rate in Australia?
Unfortunately, there’s no one right answer to this question.
That’s because if you want to find the best term deposit rate in Australia, you first need to understand the nature of interest rates themselves. The financial market is always moving, with interest rates moving up and down and special offers being introduced and withdrawn.
As a result, whatever the best term deposit rate in Australia is today might not be tomorrow.
So to find the best term deposit rate in Australia, it’s best to ignore the past and to instead focus on today’s market. Compare term deposits to find out the current rates and find the right term deposit for you.
What is a secured term deposit loan?
A secured term deposit loan is a personal loan that’s secured by a term deposit. To take out a personal loan that’s secured by a term deposit you would need to go through the same bank.
Generally, secured term deposit loans offer a lower rate of interest than standard personal loans. This is because the interest generated by your term deposit offsets the interest applied to the loan.
A secured term deposit or term deposit secured loan enables you to leave your money invested in a term deposit while still being able to make significant cash purchases.
This type of personal loan usually offers many of the same features of a standard loan, including: redraw facility, variable and fixed interest rate options, and the ability to make extra repayments.