Five-year term deposits paying up to 3.50%

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If you’re planning to take out a five-year term deposit, some smaller lenders may offer higher rates than the big four banks, new research has found.

RateCity analysis has found a range of banks and credit unions that pay higher interest rates for a $20,000 sum invested over five years.

ANZ, NAB and Westpac are all paying 2.80 per cent, while Commonwealth Bank is paying 2.65 per cent (see table below).

However, the big four are no match for four smaller lenders – RaboBank (3.50 per cent), RaboDirect (3.50 per cent), Greater Bank (3.20 per cent) and AMP Bank (3.05 per cent).

Investing $20,000 for five years with the big four banks

Lender Interest rate Final total
ANZ 2.80% $22,800
NAB 2.80% $22,800
Westpac 2.80% $22,800
Commonwealth Bank 2.65% $22,650

Investing $20,000 for five years with the four rival lenders

Lender Interest rate Final total
RaboBank 3.50% $23,500
RaboDirect 3.50% $23,500
Greater Bank 3.20% $23,200
AMP Bank 3.05% $23,050


There are also at least a dozen other lenders in Australia paying more than the big four banks on five-year term deposits:

Lender Interest rate Final total
Big Sky Building Society 3.00% $23,000
G&C Mutual Bank 3.00% $23,000
Heritage Bank 3.00% $23,000
IMB Bank 3.00% $23,000
ME Bank 3.00% $23,000
People’s Choice Credit Union 3.00% $23,000
Arab Bank Australia 2.90% $22,900
Bank First 2.90% $22,900
BankVic 2.90% $22,900
Macquarie Bank 2.90% $22,900
Qbank 2.90% $22,900
RACQ Bank 2.90% $22,900

^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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