Highest rates for 5-year term deposits sitting at 3%


Nick Bendel

Nick Bendel

May 10, 2019( 2 min read )

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If you want to earn high interest rates for a term deposit, you might have to lock away a lot of money for a long time.

A RateCity analysis of the May 2019 term deposit market has found that even the most generous five-year term deposits in Australia are paying low interest rates.

And to earn those rates, you might have to invest a sizeable sum.

G&C Mutual Bank is paying 3.00 per cent for five-year term deposits, with the minimum investment set at $1,000.

Australian Unity and IMB Bank are also paying 3.00 per cent, but have a $5,000 minimum.

Bank First, BankVic and RaboBank are paying 3.00 per cent with a $50,000 minimum.

Lender Interest rate Minimum deposit
G&C Mutual Bank 3.00% $1,000
Australian Unity 3.00% $5,000
IMB Bank 3.00% $5,000
Bank First 3.00% $50,000
BankVic 3.00% $50,000
RaboBank 3.00% $50,000

Mutual banks paying some of the highest interest rates

A range of other challenger lenders are paying between 2.80 per cent and 2.95 per cent for five-year term deposits, with minimum investments ranging from $1,000 to $250,000.

Police Bank is paying 2.95 per cent, while Greater Bank and QBank are paying 2.90 per cent.

RACQ Bank, People’s Choice Credit Union, Newcastle Permanent and Beyond Bank are all offering investors 2.80 per cent for five-year term deposits.

Lender Interest rate Minimum deposit
Police Bank 2.95% $10,000
Greater Bank 2.90% $5,000
QBank 2.90% $250,000
RACQ Bank 2.80% $1,000
People’s Choice Credit Union 2.80% $5,000
Newcastle Permanent 2.80% $10,000
Beyond Bank 2.80% $200,000

NAB the market leader among the major banks

If you’re with one of Australia’s big four banks, and you don’t want to take your business elsewhere, you’ll have to accept lower five-year term deposit interest rates.

NAB is paying 2.50 per cent, ANZ 2.45 per cent, Westpac 2.40 per cent and Commonwealth Bank 2.20 per cent.

Lender Interest rate Minimum deposit
NAB 2.50% $5,000
ANZ 2.45% $5,000
Westpac 2.40% $5,000
Commonwealth Bank 2.20% $50,000
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