Term Deposit Comparison – Compare & Apply for the Best High Interest Term Deposit Accounts

Information verified correct on October 25th, 2016

When the Reserve Bank of Australia changes the cash rate, it’s usually a good or bad sign for those considering term deposits.

If the cash rate is high so will be term deposit rates. Term deposits let you to place a larger sum of money into a special savings account where it will acquire a higher rate of interest over a set period.

RaboDirect Term Deposit

Term Deposit Offer

With a RaboDirect Term Deposit you will receive a competitive rate on your deposits and the choice of a 1, 3, 6, 9 or 12 month term.

  • Minimum investment amount: $1,000
  • Terms from 1 month to 5 years
  • Receive a loyalty bonus of 0.10%

    Compare term deposits below

    Rates last updated October 25th, 2016
    3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. 48 Mths p.a. 60 Mths p.a. Min Deposit Interest Earned
    RaboDirect Term Deposit
    RaboDirect Term Deposit
    2.40% - 2.85% 2.70% 2.90% 3.00% 3.05% 3.30% $1,000 Open More
    Bankwest Online Term Deposit
    Bankwest Online Term Deposit
    2.30% 2.50% 2.70% 2.70% 2.60% 2.60% 2.65% 2.65% $1,000 Open More
    St.George Term Deposit
    St.George Term Deposit
    2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
    Bank of Melbourne Term Deposit
    Bank of Melbourne Term Deposit
    2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
    BankSA Term Deposit
    BankSA Term Deposit
    2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
    Citibank Term Deposit ($75,000)
    Citibank Term Deposit ($75,000)
    2.90% 2.60% 3.20% 2.35% 2.35% 2.35% 2.35% 2.35% $75,000 Open More
    Westpac Term Deposit
    Westpac Term Deposit
    2.10% 2.00% 2.20% 2.50% 3.00% 3.10% 2.70% 2.85% $5,000 Open More

    What are the benefits of a term deposit?

    As well as attracting better rates, term deposits are guaranteed, meaning your interest is guaranteed for the term you choose for your deposit. Even if the Reserve Bank will adjust rates in the interim your account will not be affected.

    Let’s look at the other benefits of a term deposit account:

    • All term deposit accounts get paid with fixed interest rates. These can be paid to you monthly, quarterly, half yearly or annually if your term is longer than 12-months. If you shop and bank with the right client, then chances are your money accumulates compound interest when the earned interest gets added to your primary investment, helping to acquire more interest in the process.
    • Ranging terms allow you freedom in the way you want to handle the money.
    • It is a secure investment of excess cash: By investing your money into a term deposit account you are assured it will still there when you are ready to spend it. Instead of having money sitting around in a savings account or a checking account you can make it work for you. This is great for people who don’t need access to large funds while having the knowledge it will grow during the specified term.
    • It’s a great way to force-save money for a larger expense, since you can’t draw it unless you pay a break fee.

    What are the drawbacks of a term deposit?

    There is one major drawback to opening up a term deposit account. You will lose liquidity of your funds. Should you ever need emergency access to those funds while a term is still in operation, you can be made to pay hefty ‘break’ fees. Paying these would defeat the reason for choosing these accounts in the first place, but having said this, there is an emergency option if the need ever arises.

    • If you want the highest possible interest rate on your account then you need to part with the money for a long while.
    • Automatic roll-overs can lose you money: When you fail to act on maturity of your term deposit it could mean that the same term for the second time around will fetch a much lower rate. Since interest rates fluctuate all the time, chances are they will be different when your term is up for renewal. Therefore it pays to pay attention to your options upon maturity.
    • Not every term deposit is equal. Different banks offer different terms and interest rates. It pays to show around and to make things easier for you we have included a handy table at the bottom of this page.
    • Small print alert: Before you choose a specific supplier be sure to read their product disclosure statement to fully understand your rights.
    • Unless your term deposit account is guaranteed by the APRA (Australian Prudential and Regulatory Authority), your investment is not safe! Visit the APRA website for more information.

    Shirley Liu

    Shirley is a personal finance journalist for finder.com.au. She is passionate about educating readers about home loans and helping users navigate the area to find the best deal for their financial situation.

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    4 Responses to Term Deposit Comparison – Compare & Apply for the Best High Interest Term Deposit Accounts

    1. Default Gravatar
      William | June 11, 2013

      It seems increasingly difficult to lock money in for say 5 years with a lot of institutions, at compound interest. Most seem to want you to take the accrued interest out every 12 months. I would rather see it locked in for 5 years. Do you know where I could invest at compound interest.

      • Staff
        Jacob | June 11, 2013

        Hi William. Thanks for your question. Please see this page for information about term deposit options. Jacob.

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