Mozo guides

Bank term deposits guide

So you’ve decided a term deposit is the best place for that nice Christmas bonus, or the nest egg you’ve been working on, but now the question is, where do you go to get one? The answer might seem easy - the bank, of course - but there are heaps of options when it comes to choosing where you want to open a term deposit.

We’ve broken down the details of some of the major providers to help you decide which is the best bet for you.

Who offers term deposits?

From major banks to small, online outfits, most financial institutions offer term deposit products these days. Here are the main categories they fall into and what each one brings to the table.

Major banks 

This includes the big 4 players, plus others like AMP Bank, Macquarie Bank and Adelaide Bank.

Generally speaking, major bank term deposit interest rates are not as good as those you can find elsewhere. But if you’re someone who likes to do your banking face-to-face, major banks are the ones most likely to offer convenient branch access.

Credit unions and mutual banks

These are smaller institutions, which are usually not-for-profit and owned by their members.

Credit unions and mutual bank term deposits generally come with better interest rates attached than the big banks, but on the other hand, you’ll need to become a member to bank with them, and more than likely have to pay a membership fee.

They’re also often locally based, so if branch access is important to you, check that your chosen credit union or mutual bank is conveniently located for you.

Online banks

More and more people are turning to their computer for banking solutions these days. If you opt for an online bank term deposit, the good news is that you’ll have the pick of some of the best rates on the market. This is because with no branches, online banks have few overhead costs and can pass the savings on to you in the form of competitive interest rates.

For example, Judo Bank offers some of the highest rates in our database.

The downside is that there’s no option to do your banking in person, so only choose an online term deposit if you’re happy managing your money online or over the phone.

What term deposit offers are available from the banks?

Heaps! So many that we can’t cover them all here. But to give you a snapshot of what’s available from some of the major banks in Australia. For instance the average term deposit rate from the Big Four is lower than average from our database.

Big 4 Term Deposit Averages

Term Length Average interest rate
1 year 0.32% p.a.
2 years 0.40% p.a.
3 years 0.55% p.a.
4 years 0.62% p.a.
5 years 0.67% p.a.

*Averages are correct as of 17 May 2022.

Mozo Database Averages

Term Length Average interest rate
1 year 0.94% p.a.
2 years 1.22% p.a.
3 years 1.25% p.a.
4 years 1.37% p.a.
5 years 1.38% p.a.

*Averages are correct as of 17 May 2022.

Find the best term deposit

That was just a taste of what’s out there - there are heaps more term deposit deals available. If you want to compare a range of term deposit offers from other providers, check out our term deposits comparison page.

*The information in this guide was correct at the time of writing, but is subject to change. Please click through to the provider’s term deposits page for updated information.

**Not all interest payment options apply to all terms.

Term Deposit Comparison Table - last updated 18 April 2024

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

    4.75% p.a.
    1 year

    $1,000

    Yes up to $250,000

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  • Term Deposit

    4.80% p.a.
    9 months

    $1,000

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  • Mozo Expert Choice Badge
    Term Deposit

    4.85% 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)

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  • Online Term Deposit

    4.85% p.a.
    9 months

    $5,000

    Yes up to $250,000

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Mozo Editorial
Mozo Editorial

Mozo’s team of experienced journalists and money experts provide news, insights, practical guides and expert analysis to help you master your personal finances. We follow editorial guidelines that focus on accuracy, reliability and timeliness; helping you make informed financial decisions with confidence and the most of your hard-earned money.

* 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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