Small banks and credit unions are offering the highest term deposit rates in Australia right now.
For investors who want to lock away $5,000, Arab Bank Australia is paying 3.00 per cent for one-year term deposits. That results in a total payout of $5,150 after 12 months (see table below).
Bank Australia, Bank of Sydney and Rural Bank One have one-year term deposit interest rates of 2.85 per cent.
Investors who want to take out a $5,000 two-year term deposit can receive 2.95 per cent from Bank Australia, for a final payout of $5,295.
Defence Bank, Teachers Mutual Bank and UniBank are close behind, with interest rates of 2.90 per cent.
A range of institutions are paying 3.00 per cent for three-year term deposits, including Australian Unity, Bank Australia, Heritage Bank, Teachers Mutual Bank and The Mutual.
That will turn an investment of $5,000 into $5,450 at the end of the three-year term deposit.
When it comes to four-year term deposits, Rabobank and RaboDirect are both paying interest rates of 3.20 per cent, resulting in a final payout of $5,640.
Australian Unity, Heritage Bank and ME Bank are offering 3.00 per cent interest on four-year term deposits.
Investors who want a five-year term deposit can receive 3.40 per cent interest from Rabobank and RaboDirect, for a final payout of $5,850.
Greater Bank is offering 3.10 per cent for five-year term deposits, while Australian Unity and G&C Mutual Bank are paying 3.00 per cent interest.
One-year term deposits
| Lender | Interest rate | Final total |
|---|---|---|
| Arab Bank Australia | 3.00% | $5,150 |
| Bank Australia | 2.85% | $5,142.50 |
| Bank of Sydney | 2.85% | $5,142.50 |
| Rural Bank One | 2.85% | $5,142.50 |
| ME Bank | 2.80% | $5,140 |
Two-year term deposits
| Lender | Interest rate | Final total |
|---|---|---|
| Bank Australia | 2.95% | $5,295 |
| Defence Bank | 2.90% | $5,290 |
| Teachers Mutual Bank | 2.90% | $5,290 |
| UniBank | 2.90% | $5,290 |
| ME Bank | 2.85% | $5,285 |
Three-year term deposits
| Lender | Interest rate | Final total |
|---|---|---|
| Australian Unity | 3.00% | $5,450 |
| Bank Australia | 3.00% | $5,450 |
| Heritage Bank | 3.00% | $5,450 |
| Teachers Mutual Bank | 3.00% | $5,450 |
| The Mutual | 3.00% | $5,450 |
Four-year term deposits
| Lender | Interest rate | Final total |
|---|---|---|
| Rabobank | 3.20% | $5,640 |
| RaboDirect | 3.20% | $5,640 |
| Australian Unity | 3.00% | $5,600 |
| Heritage Bank | 3.00% | $5,600 |
| ME Bank | 3.00% | $5,600 |
Five-year term deposits
| Lender | Interest rate | Final total |
|---|---|---|
| Rabobank | 3.40% | $5,850 |
| RaboDirect | 3.40% | $5,850 |
| Greater Bank | 3.10% | $5,775 |
| Australian Unity | 3.00% | $5,750 |
| G&C Mutual Bank | 3.00% | $5,750 |
Update (April 8, 2019): Since publishing this story, three months have passed and the rates have changed. As such, RateCity has published revised and refreshed term deposit rates, providing more up-to-date coverage.