Investors who want to put $10,000 in a three-year term deposit may want to skip the big four banks, which are not paying the highest interest rates in Australia.
NAB pays the highest interest rate among the big four banks for three-year term deposits, at 2.70 per cent (see table below). That results in a $10,810 payout at the end of the investment.
ANZ and Westpac both pay 2.50 per cent for three-year term deposits, turning an initial $10,000 investment into $10,750.
Commonwealth Bank offers 2.40 per cent interest, resulting in a final total of $10,720.
Lender | Interest rate | Final total |
---|---|---|
NAB | 2.70% | $10,810 |
ANZ | 2.50% | $10,750 |
Westpac | 2.50% | $10,750 |
Commonwealth Bank | 2.40% | $10,720 |
Customer-owned lenders paying 3% and above
There are a range of smaller lenders that are paying higher interest rates than the big four banks on $10,000 sums invested in three-year term deposits.
Horizon Credit Union is paying 3.10 per cent for three-year term deposits, which turns $10,000 into $10,930 (see table below).
Greater Bank is just behind at 3.05 per cent, which equates to a $10,915 payout.
At least eight other lenders pay 3.00 per cent interest for three-year term deposits – Bank Australia, Big Sky Building Society, ME Bank, People’s Choice Credit Union, Qudos Bank, Teachers Mutual Bank, The Mutual and Unibank.
Lender | Interest rate | Final total |
---|---|---|
Horizon Credit Union | 3.10% | $10,930 |
Greater Bank | 3.05% | $10,915 |
Bank Australia | 3.00% | $10,900 |
Big Sky Building Society | 3.00% | $10,900 |
ME Bank | 3.00% | $10,900 |
People’s Choice Credit Union | 3.00% | $10,900 |
Qudos Bank | 3.00% | $10,900 |
Teachers Mutual Bank | 3.00% | $10,900 |
The Mutual | 3.00% | $10,900 |
Unibank | 3.00% | $10,900 |