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Two-year term deposits paying up to 3% interest

Two-year term deposits paying up to 3% interest

Term deposits with some of the highest interest rates in Australia are paying little more than the inflation rate, new research has found.

There are currently just a handful of lenders in Australia that will pay even 3.00 per cent interest for a $10,000 term deposit locked away for two years (see table below)

That is not much higher than Australia’s inflation rate of 2.1 per cent.

CUA, Greater Bank, ING and The Mutual are all paying 3.00 per cent for two-year term deposits, which would turn a $10,000 investment into a $10,600 payout.

Bank Australia and Police Bank offer 2.95 per cent interest for two-year term deposits, while Horizon Credit Union offers 2.90 per cent interest.

LenderInterest rateFinal total
CUA3.00%$10,600
Greater Bank3.00%$10,600
ING3.00%$10,600
The Mutual3.00%$10,600
Bank Australia2.95%$10,590
Police Bank2.95%$10,590
Horizon Credit Union2.90%$10,580

Please note that the term deposit with the highest interest rates won’t necessarily be the best term deposit for your situation.

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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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