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$5,000 term deposits paying up to 3.40% interest

Nick Bendel avatar
Nick Bendel
- 3 min read
$5,000 term deposits paying up to 3.40% interest

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

LenderInterest rateFinal total
Arab Bank Australia3.00%$5,150
Bank Australia2.85%$5,142.50
Bank of Sydney2.85%$5,142.50
Rural Bank One2.85%$5,142.50
ME Bank2.80%$5,140

Two-year term deposits

LenderInterest rateFinal total
Bank Australia2.95%$5,295
Defence Bank2.90%$5,290
Teachers Mutual Bank2.90%$5,290
UniBank2.90%$5,290
ME Bank2.85%$5,285

Three-year term deposits

LenderInterest rateFinal total
Australian Unity3.00%$5,450
Bank Australia3.00%$5,450
Heritage Bank3.00%$5,450
Teachers Mutual Bank3.00%$5,450
The Mutual3.00%$5,450

Four-year term deposits

LenderInterest rateFinal total
Rabobank3.20%$5,640
RaboDirect3.20%$5,640
Australian Unity3.00%$5,600
Heritage Bank3.00%$5,600
ME Bank3.00%$5,600

Five-year term deposits

LenderInterest rateFinal total
Rabobank3.40%$5,850
RaboDirect3.40%$5,850
Greater Bank3.10%$5,775
Australian Unity3.00%$5,750
G&C Mutual Bank3.00%$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.

Disclaimer

This article is over two years old, last updated on January 6, 2019. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent term deposits articles.

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Product database updated 19 Mar, 2024

This article was reviewed by Head of SEO Leigh Stark before it was published as part of RateCity's Fact Check process.