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

Nick Bendel

Jan 6, 2019( 3 min read )

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.