2 year term deposits

Got long term goals like buying a house? A two-year term deposit can help you grow your savings with a better interest rate. Compare two-year term deposits below!

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2 year term deposits

2 year term deposit comparisons on Mozo - last updated 18 April 2024

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  • Mozo Expert Choice Badge
    Term Deposit

    4.40% p.a.
    2 years

    $1,000

    Yes up to $250,000

    Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)

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  • Online Term Deposit

    3.95% p.a.
    2 years

    $5,000

    Yes up to $250,000

    No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.

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  • Term Deposit

    4.40% p.a.
    2 years

    $1,000

    Yes up to $250,000

    Enjoy the certainty of a fixed interest rate combined with the convenience of online banking to set up and manage your term deposit at maturity. You can start investing from as little as $1,000 or up to $5,000,000.

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  • Term Deposit

    4.40% p.a.
    2 years

    $5,000

    Yes up to $250,000

    Secure a guaranteed rate of return with a Great Southern Bank Term Deposit. Pay $0 monthly account fees. Choose your own terms from one month to five years. Manage your term deposit conveniently online. protected by the Australian Government's guarantee on deposits.

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^See information about the Mozo Experts Choice Term deposits Awards

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Term deposit resources

Reviews, news, tips and guides to help find the best term deposit for you.

What is a 2 year term deposit?

A 2 year term deposit is a long term deposit and an ideal way to stash your funds. It’s a good option for people looking to lock their money away and watch their balance grow while they save for something big like a home deposit or renovation.  

When you lock in a term deposit, the interest rate that you get is fixed for the period that you choose. This means that, regardless of what happens to term deposit rates, the interest that you got with your 2 year term will stay the same.

How much can I deposit?

Deposit limits vary from bank to bank but the minimum deposit is usually anywhere from $1,000 to $5,000. You’ll also find that some providers will cap how much you can deposit into your initial balance. Some banks are open to negotiating if you want to deposit more, but this will likely be at a lower interest rate.

All balance limits are indicated in our 2 year term deposit comparison table. You can also find specific provider limits using our Term Deposits Search Engine.

What will the interest rate be like?

Two year term deposits are usually considered 'long' term deposits, meaning you will generally receive a higher interest rate than you might with a shorter, six month term deposit. Of course, with that in mind, it is still a good idea to shop around to make sure you get a competitive two year term deposit rate. 

Check out Mozo's Term Deposits Interest Rates information page for more information on current term deposit rates.

When will I receive my interest payment?

Depending on which bank you are with, you may receive interest payments monthly, annually or at maturity. In most cases, receiving your interest more often is beneficial because once you’ve paid your interest you can start making compound interest on those earnings. One thing to note, though, is that your rate might be lower if you go with the monthly option.  

Alternatively, some banks give you the option to receive your interest payments in a separate bank account, so that you can use your earnings right away. Read our term deposit reviews to see different providers’ interest rates and features.

Can I access my money before my 2 year term deposit matures?

Like with all other term deposits, accessing your funds before your term matures is not recommended as there could be early withdrawal costs. If you feel that you’ll need to access your money over the two years, it may be worth considering a high interest savings account instead as they have minimal restrictions and no fees when it comes to withdrawal.

Am I able to deposit more money over the 2 years?

Because term deposits are designed to accumulate interest on your initial balance, you can’t keep adding funds to your deposit. Once you’ve made your deposit, you are locked into the same amount of money (plus your interest earnings) until your term deposit has matured.

What are the pros and cons of a 2 year term deposit?

One of the things that you might find helpful about a 2 year term deposit are the fixed interest rates. With interest rates fixed, you know what you’re getting for the entire 2 year term. If interest rates are high and you lock in a deposit before it’s cut, then you can find yourself with a higher rate than the ongoing rate. One disadvantage of this is that, if interest rates continue to rise, then you might find your cash locked away in an account with a smaller interest rate. 

Another advantage of term deposits is a psychological aspect—they dissuade you from withdrawing. This can be helpful if you can’t help dipping into your savings. It can also be easier to simply “set and forget” with a term deposit.  

One disadvantage of term deposits is that they can be inflexible when it comes to accessing cash. If you need access to cash for any emergencies, a term deposit will incur withdrawal fees and generally requires 31 days' notice. For this reason, you should make sure that you have a good ratio of easily accessible funds versus the amount you can realistically contribute.

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JP Pelosi
RG146
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

2 Year Term Deposit FAQ

What is the difference between a term deposit and a savings account?

Term deposits are fixed interest accounts in which you deposit a single lump sum. This means that, regardless of where interest rates are, you’ll always get the same amount of interest for the set period. On the other hand, savings accounts have variable rates that are subject to change from movements in the cash rate. However, you can access them at any time and there are generally no penalties for withdrawal (although some bonus rates require balances to grow to get the full interest rate).

Which is better, a term deposit or a savings account?

It depends on your situation. If you want access to your savings at any time and are okay with a fluctuating interest rate, then a savings account might be the right choice for you. Likewise, if you want the certainty of a fixed rate over a longer period, and you don’t need to access the cash, then a term deposit could be a good option.

Term Deposit Reviews

ANZ Term Deposit
Overall 9/10
Excellent

I am extremely happy with my bank including service and products

Read full review

I am extremely happy with my bank including service and products

Price
9/10
Features
8/10
Customer service
8/10
Convenience
9/10
Trust
7/10
Less
Melissa, Victoria, reviewed 23 days ago
Commonwealth Bank Term Deposit
Overall 10/10
Best for customers service

I love this bank because of how l am treated

Read full review

I love this bank because of how l am treated

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Jonathan, Victoria, reviewed 30 days ago
Greater Bank Term Deposit
Overall 10/10
Reccommend this "Greater Bank" for overall service

I have always found this bank and its customer service to stand out. The staff I have dealt with have been knowladgeable,courteous and friendly and helpful. Very patient with all my many questions.

Read full review

I have always found this bank and its customer service to stand out. The staff I have dealt with have been knowladgeable,courteous and friendly and helpful. Very patient with all my many questions.

Price
9/10
Features
7/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Glynis, New South Wales, reviewed 30 days ago

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