How are term deposits rates doing in July?

By Cameron Thomson · · 2 min read
Fact Checked
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Recently, term deposit providers have turned away from higher interest rates for longer terms and are instead focusing on shorter term rates. So, if you’re looking to lock your cash up for a short while, then some of the current term deposit rates on the market could be worth considering.

But who’s the current rate leader in term deposits? For a lot of last year, Judo Bank was the leader across most terms. However, as of July 2024, no one provider is offering leading rates across all terms.   

For example, Judo Bank currently has the highest rates across 2 and 3 year rates on our database^^. Rabobank sits ahead of Judo in 5 year terms and is tied on 4 years. For shorter terms like 6 months and 1 year, Heartland Bank offers the highest rate at 5.30% p.a.

Below we’ve kept track of the top three financial institutions offering some of the highest interest rates found in the Mozo database. 

**Top Term Deposit leaders

Judo Bank - Highest 2,3,4, and 5 year rates

Term Length
Interest Rate  (p.a.)
1-year term
5.25%
2-year term
5.00%
3-year term
5.00%
4-year term
5.00%
5-year term
5.00%
Minimum deposit: $1,000

Rabobank - Second highest 4 and 5 year rates

Term Length
Interest Rate (p.a.)
1-year term
5.00%
2-year term
4.50%
3-year term
4.50%
4-year term
5.00%
5-year term
5.10%
Minimum deposit: $1,000

Heartland Bank - Highest 1 year term rates 

Term Length
Interest Rate (p.a.)
6 month
5.30%
9 month
5.25%
1-year term
5.35%
2-year term
4.80%
3-year term
4.20%
Minimum deposit: $25,000

To learn more about term deposits check out Mozo’s tips and guide page.

**Top refers to the leading rate on the Mozo database

^^Excludes Alex Bank which is an application via invitation only. 

Term Deposit FAQs

What is a term deposit?

A term deposit is a low-risk investment option offered by many banks, mutual banks and credit unions. The deposit lets you earn interest on a large sum of money at a fixed rate for a specified period of time. That can be anywhere from one month to five years. After you put money in a term deposit you can choose how to have your interest paid: monthly or at maturity.

What are some of the best term deposits?

You’re in luck! Every year we announce the Mozo Expert Choice Awards^ where we crown the best of the best as winners. Some of the banks with the highest rates above have actually won awards for best term deposits.

Do I pay tax on the interest earned from my term deposit?

Yes, any interest earned is considered income and you’ll need to include this on your tax return for the financial year in which it was paid.

What’s the difference between a savings account and a term deposit?

Term deposits have fixed interest rates so you’ll always know how much you’ll earn over the determined term period, but the trade off is that to earn that interest you won't be able to access that money (without penalty). On the other hand, savings accounts have variable interest rates which can be changed by your bank (up or down) at any time and you’ll also have easier access to your money.

Compare term deposits

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 101 term deposits.
Last updated 27 July 2024 Important disclosures
  • Mozo Expert Choice Badge
    Term Deposit

    5.25% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Great rates and incentives incl. 0.10% added loyalty bonus at renewal. Option to have interest paid to another bank. Winner of the Mozo Experts Choice Awards 2024^ for Term Deposits.

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  • Term Deposit - Online only

    5.15% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Looking for returns that return? Invest as little as $1,000 or as much as $1,000,000. Apply online today in as little as 5 minutes. Protected by the Australian Government’s Financial Claims Scheme up to $250,000.

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  • SMSF Term Deposit

    5.25% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Apply digitally in minutes and manage your SMSF Term Deposit. Flexible cash flow management with three interest payment frequencies that suit you: monthly, yearly, or at maturity. Choose from terms of 3 months up to 5 years. No application or monthly account fees but eligibility criteria and terms and conditions apply. Only accessible to SMSFs with two or up to four individual trustees or one corporate trustee.

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  • Mozo Expert Choice Badge
    Term Deposit

    5.25% p.a.
    1 year

    $1,000

    Yes up to $250,000

    Great rates and incentives incl. 0.10% added loyalty bonus at renewal. Option to have interest paid to another bank. Winner of the Mozo Experts Choice Awards 2024^ for Term Deposits.

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    Details
  • Term Deposit

    3.70% p.a.
    6 months

    $5,000

    Yes up to $250,000

    Compare
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    Details

Today's term deposit rates