What type of term deposit is right for you? Start here

calculating which term deposit is best

Looking for a place to stash your cash, earn high returns, and protect yourself against market rate movements? Well, a term deposit might be what you need. 

The tricky part is choosing the best one for your financial needs. Below we’ve highlighted typical saver types and if they’d benefit from a long or short term deposit.

Short term deposits

A short term deposit is typically less than 12 months, and it's ideal for those looking to tuck away some money for the near future. Plus, with a shorter term deposit, you can access your cash quicker and even add more funds to your balance when it hits maturity.

Typical savers who use short term deposits include:

  • those who wish to store money away for a holiday or a major purchase like a car.
  • those looking for a quick boost to their savings.
  • those wanting tougher access to their money to avoid overspending.

If you have the patience to store your money for over 12 months, then longer term deposits are worth considering.

Long term deposits

If you have some spare cash you don’t need to access for a few years, then a long term deposit might be for you. Anything longer than 12 months is considered a long term deposit and tends to have higher interest rates than shorter term deposits. 

This means you might enjoy extra money as a good saver when it reaches maturity.

Typical savers who use long term deposits include:

  • those with a lump sum and don't need it in a hurry.
  • those with a long term savings goal, like a deposit for a first home.
  • overspenders who splurge when money is in the bank.

Just because your money is stored away, doesn’t mean you can’t get to it in emergencies. All term deposits allow early withdrawals when given a 31-day notice period, but be mindful that it does come with some interest rate penalties.

How can I find the best term deposit rates?

So you want to get a term deposit and don’t know where to start? 

Lucky for you, our Mozo experts narrowed down some of the top term deposits in our database and handed awards to the best in the Mozo Experts Choice Awards.

Term deposit comparisons on Mozo - last updated 3 May 2024

Search promoted term deposits below or do a full Mozo database search. Advertiser disclosure
  • Online Term Deposit

    5.00% p.a.
    7 months

    $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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    Details
  • Mozo Expert Choice Badge
    Term Deposit

    5.00% p.a.
    1 year

    $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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    Details
  • SMSF Term Deposit

    5.10% 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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  • Term Deposit

    4.80% p.a.
    9 months

    $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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    Details
  • Mozo Expert Choice Badge
    Term Deposit

    5.00% p.a.
    6 months

    $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)

    Compare
    Details

* Different interest rates apply to different amounts or different interest payment frequencies.

^See information about the Mozo Experts Choice Term Deposit Awards

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