Find and compare $5000+ 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 3 months | $250,000 |  Term Deposit ($250k+) | 1.00% p.a for 3 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 60 months | $50,000 |  Term Deposit | 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 | ||||
1.00% p.a for 24 months | $5,000 |  Term Deposit | 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 | ||||
1.00% p.a for 5 months | $50,000 |  Term Deposits | 0.75% 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 | ||||
0.70% p.a for 3 months | $10,000 | Term Deposit ($10k - $250k) | 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 |
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If you’re looking to open a term deposit, it likely means you’re ready to build your savings and expand your investment portfolio.
You might be looking for interest rates for term deposits over $5,000, or a deposit with no minimum balance required. Either way, it’s important to understand how your money will earn you interest.
How is interest calculated?
The amount of interest your term deposit will earn depends on the deposit amount, term length, and interest rate. A fixed interest rate essentially signifies the percentage of your original deposit that you’ll earn in interest each year. That means that a $5,000 deposit earning an interest rate of 4 per cent will earn four per cent of $5,000 – or $200 per year.
You can also use a term deposits calculator to discover how much you can earn using specific amounts and rates. You can also estimate the interest on your own by multiplying your deposit amount, interest rate, and term length. For example, if you invest $5,000 at 4 per cent interest for one year, you’ll earn $200 in interest.
Are there different types of interest I should know about?
The interest rate is one of the most important components of your term deposit, so it’s essential that you understand your options. There are two types of interest you might encounter when opening a term deposit. The first of these is simple interest.
Simple interest is paid as a fixed percentage of the original amount of the deposit. For example, a term deposit of $5,000 at a simple interest rate of 3 per cent will earn $150 annually.
The second type of interest is compound interest. With compound interest, your earnings are reinvested so that the interest itself can earn interest. Compound interest will earn you more in the long run because your interest is able to earn you more interest.
How do I make the most interest from my term deposit?
When you invest over $5,000 in a term deposit, you want to get the most back in return. All term deposits pay interest, but making the most interest possible is a matter of securing a high rate and extending the term length.
The first step in making the most of your $5,000 term deposit is finding the highest interest rate on the market. A higher interest rate will earn you more interest no matter how much money you invest, so doing your research is essential. Start by comparing term deposits to find the highest interest rate available. Securing a high rate will ensure you make the most of your term deposit.
The second step is to determine how long your term should be. Generally, when the term is lengthened, the deposit will earn more interest. However, it’s important to remember that penalties will usually apply for early withdrawal, so only commit your $5,000 investment for as many months or years as you can afford.
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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FAQs
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.
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.
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.
Sometimes you only want to tie up your money for a short period, maybe because you want to make a quick return on a large sum, or just to have more flexibility and access to your money. That’s where a short term deposit can come in.
Short term deposits are usually less than 12 months (e.g. 30 days, 90 days, six months or 12 months), though you will still not be able to access your money for the length of the term without incurring a penalty fee.
At the end of the term, you can roll your deposit over, or you can withdraw it. An advantage of short term deposits is that you can take advantage of higher interest rates with a different financial institution, if they are available.
If you’re looking for a steady way to grow your funds as an international student, you might be considering the possibility of a term deposit. Banking for overseas students can be complicated, so you might be wondering, “Can an international student have a term deposit?”
So, can an international student open a term deposit? The answer is yes.
Several banks around Australia offer term deposits to international students. Some banks even have specific accounts and offers designed for those who study overseas.
In general, large banks will offer several options for international students. If you have already opened an account with a bank, it might be best to start by discussing your options with your chosen bank.
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.
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.
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.
If you are a student who has managed to save some money and are looking for a safe investment option, you may be considering a term deposit. Most term deposits (and other bank accounts) are open to anyone who is at least 18 years old.
There are also some term deposits open to younger students, some even without an age limit. These term deposits are usually opened on the student’s behalf, by their parent or guardian.
A term deposit is generally a safe investment option, especially if you want to make sure you can’t touch your savings for a set period of time. If you are 18 or older, shop around for a competitive interest rate before committing. If you are under 18, speak to your parent or guardian to get started.
Just like your regular income, the interest you earn on term deposits is taxable. You might be wondering, “How do I pay tax on term deposits?” The tax you pay on your interest will depend on the length of your term and when your interest is paid.
You should pay tax on any interest that you have received within the current financial year. For example, if you receive monthly interest payments, these payments should be claimed on your tax return. However, if your term deposit is longer than one year and you will only receive interest at maturity, then you will pay tax on your interest in the year that you receive it.
Paying tax on your interest is much like paying tax on your income. The money you have made in interest should be claimed on your tax return along with any other income in that year.