1-year term deposits paying up to 2.90%

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Challenger banks and credit unions are currently offering some of the highest interest rates in Australia for one-year term deposits.

Investors who want to lock away $5,000 for 12 months can earn 2.90 per cent interest from both Teachers Mutual Bank and UniBank.

At the end of investment period, the $5,000 one-year term deposit would grow to $5,145 (see table below).

Bank Australia is paying 2.85 per cent for its 12-month term deposits, ME Bank is paying 2.80 per cent and G&C Mutual Bank is paying 2.75 per cent.

A $5,000 term deposit could also earn an interest rate of 2.70 per cent from Greater Bank, Heritage Bank, People’s Choice Credit Union, RACQ, Rural Bank and The Mutual.

Australia annual inflation rate is 1.90 per cent, so investors will get a minimal after-inflation return even if they choose a one-year term deposit with the highest interest rate.

Lender Interest rate Final total
Teachers Mutual Bank 2.90% $5,145
UniBank 2.90% $5,145
Bank Australia 2.85% $5,142.50
ME Bank 2.80% $5,140
G&C Mutual Bank 2.75% $5,137.50
Greater Bank 2.70% $5,135
Heritage Bank 2.70% $5,135
People’s Choice Credit Union 2.70% $5,135
RACQ 2.70% $5,135
Rural Bank 2.70% $5,135
The Mutual 2.70% $5,135

Please note that the highest-rate one-year term deposit won’t necessarily be the best term deposit for your situation.


^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, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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