Smaller banks paying the highest term deposit rates

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Half a dozen lenders are paying 3.00 per cent interest on three-year term deposits, new research has found.

Australian Unity, ME Bank, Qudos Bank, RACQ Bank, Teachers Mutual Bank and UniBank have interest rates of 3.00 per cent for three-year term deposits (see table below).

Investors who took out a $10,000 term deposit for three years would receive $10,900 at the end of their three-year term.

People’s Choice Credit Union, QBank and RaboDirect are paying 2.90 per cent for three-year term deposits, which would result in a final payout of $10,870.

Australia’s big four banks are paying lower interest rates for three-year term deposits (see table below).

ANZ, NAB and Westpac are paying 2.50 per cent interest, while Commonwealth Bank is paying 2.30 per cent.

Three-year, $10,000 term deposits – challenger lenders


Lender Interest rate Final total
Australian Unity 3.00% $10,900
ME Bank 3.00% $10,900
Qudos Bank 3.00% $10,900
RACQ Bank 3.00% $10,900
Teachers Mutual Bank 3.00% $10,900
UniBank 3.00% $10,900
People’s Choice Credit Union 2.90% $10,870
QBank 2.90% $10,870
RaboDirect 2.90% $10,870

Three-year, $10,000 term deposits – big four banks

Lender Interest rate Final total
ANZ 2.50% $10,750
NAB 2.50% $10,750
Westpac 2.50% $10,750
Commonwealth Bank 2.30% $10,690



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