5 year term deposits

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

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5 year term deposits

5 year term deposit comparisons on Mozo - last updated 15 April 2024

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  • Mozo Expert Choice Badge
    Term Deposit

    4.90% p.a.
    5 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

    -

    -

    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

    4.00% p.a.
    5 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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^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.

Investing in a term deposit for the long term

Term deposits can be a safe investment option if you’ve got a lump sum of money that you want to grow. You can put it away for a set period of time and let the interest pile up. After that, you can use the money or reinvest it for another term. 

With a term deposit, you get certainty by locking in an interest rate for a fixed period of time. So, if you’re investing for the long term, you’ll want to make sure that you are getting a good return on that money, not only today but also in 5 years' time.

Of course, no one can predict the future so there are a few things you need to consider before you lock your money away for the long term. 

The first thing is interest rates—are they likely to go up or down over the term? This can be difficult to predict but, if you do think it’s more likely up than down, then it might be more lucrative for you to choose a shorter term, like a 2 year term deposit

The second thing you should consider is how likely it is that you’ll need to access that money during the time that it's held in a term deposit. This is because term deposits come with break fees, so early withdrawals could see you pay hefty bank fees. Also, you might not see some or all of the interest you earned, so it’s a good idea to make sure you have more liquid savings that are kept in a high interest savings account that you can dip into.

How to compare 5 year term deposits

If you’re looking for a 5 year term deposit, then there are some key features that you might want to check for. This could include:

  • Interest Rates: Term deposit interest rates are fixed for a period of your choosing, so you’ll want to make sure you’re getting a rate that will serve you well for the long term. 

  • Minimum Deposit Requirement: Providers generally have a minimum deposit requirement that usually varies from $1,000 to $5,000.

  • Compounding Frequency: The most common compound frequencies are monthly, annually, and at maturity. Keep in mind that monthly compounding rates tend to be a bit lower due to the effects of compound interest.

What to look out for in a term deposit 

Since the RBA started hiking rates, term deposit providers have been raising their own interest rates. This is great if you’re a saver as it means that there are loads of competitive rates to look out for when selecting a term deposit provider.

But what about risks? Like your savings accounts, term deposits tend to be offered by Authorised Deposit-taking Institutions (ADIs). This means that you’ll get the Australian Government’s Financial Claims Scheme which guarantees deposits of up to $250,000. This includes online providers like Rabobank, ING, Judo Bank and all the way up to the big four banks. You’ll want the best return on your money, so when you’re comparing term deposits, the interest rate that’s going to be offered should be one of the most important aspects factored into your decision. Mozo’s comparison table above lets you compare side by side the interest rate of different term deposit providers offering 5 year term deposits so that you can find the one that suits you best.

Of course, banks will have different rates depending on the length that you want to invest your money for. If you want to see what rates are offered for different terms other than 5 year terms, check out our term deposit hub.

Term deposits for self managed super funds (SMSF)

If you've got a SMSF you'll need to take out a business term deposit. If you're looking for the best term deposit options for SMSFs, head over to the Mozo Experts Choice Awards SMSF accounts section to see which providers and terms ranked best according to our money experts.


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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.

More FAQs about 5 year term deposits

What’s the benefit of choosing a 5 year term?

A 5 year term deposit can be an effective method to put away your money and continually earn interest for the long term. If you have a lump sum of cash that you want to spend on something specific in the future, like say your child’s high school fees, a 5 year term deposit locks away your savings and ensures you won’t dip into them before it matures. Similarly, if you like the security of knowing exactly how much interest you will make on your money, you can lock in an interest rate that lasts the entire term. Because 5 years is on the longer side of term deposits, make sure that you are getting the best return on your funds not only when you make your deposit, but also in the future. 

When can I access my money?

To access your money from your term deposit, you need to wait till the full term of your term deposit is complete - so in this case 5 years. Break fees are a penalty for accessing your money before the full term of your term deposit contract is complete. The exact penalty is at the discretion of your lender but you can expect to be penalised between 40% and all of your interest earnings. (Ouch!) We understand that 5 years is a big commitment, so if there is any reason you may need to access your money before the full term is up, you may be better off with say 2 year term deposit or even just a short term deposit

How often will I receive interest payments?

For a long term deposit, you usually have options for when you receive your payment of your interest earnings. You can choose to receive interest monthly, quarterly, annually or at your term deposits maturity. While you must be patient when it comes to accessing your initial sum put down at the beginning of your term deposit, some banks give customers the option to receive their interest payments in a separate bank account. This means that you can see and use your earnings while the bulk of your money is still locked away. Have a read of our term deposit reviews to see different providers’ interest rates and features.

Can I top up a 5 year term deposit?

Unfortunately, unlike a savings account, there is no ‘top-up’ feature on a term deposit, as it is designed to accumulate interest on the one deposited amount. Once you have made your deposit, your funds are locked away and the key is hidden until your term deposit reaches maturity. To put it simply, nothing goes in or comes outs for 5 years, so if your someone who likes to stash cash on a regular basis, a high interest savings account may be better instead.
Is choosing a longer term deposit always better?

It’s true, you’re more likely to get a higher rate on a longer term deposit and for someone who spends whenever they have extra cash, it could be better to lock those savings away for longer so that they stay savings.

But, one of the downsides to a term deposit is that no-one can predict the future so there are a few things you need to consider. The first thing is interest rates. Are they likely to go up or down over the term? This can be difficult to predict but if you do think it’s more likely up then down, then it might be a more lucrative for you to choose a shorter term.

The second key thing to ask yourself if whether you can safely say that you won’t need to access the money in the time that its locked up. By not keeping your money in a term deposit for the full duration could see you pay hefty bank fees. For other term deposit options and to weigh up different providers, head to our term deposit comparison table.

Are there any extra fees with longer term investment deposit options?

A major benefit of term deposits, is that you are unlikely to encounter extra costs, like set up, annual or ongoing fees. You should always double check with your provider before you make your deposit, just to make sure you’re not paying more for no reason. Do keep in mind though, if you decide to withdraw your money before the end of the 5 year term deposit period, you should expect to be hit with break fees and see your interest rate decreased.

Can I add more money to my 5 year term  deposit?

You can only add more funds to your term deposit at maturity. The only time extra cash will be contributed to your deposit is if you’ve chosen to have interest paid monthly or annually.

What’s the benefit of choosing a 5 year term deposit

The main benefit of choosing a 5 year term deposit is that you’ll have a fixed amount of interest over a longer period of time where you know how much of a return you’re getting. 


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