Can you add money to a term deposit?

Whether you’ve used term deposits for years, or are considering opening your first, you may be curious as to if you can add money to a term deposit after it has commenced. 

Unfortunately, the amount in your term deposit cannot be added to once the fixed term is rolling, but you can when the term deposit matures. If this flexibility is something you desire, it may be worth considering an alternative product. 

How does a term deposit work?

When you open a term deposit, you agree to lock your money away for a set period and earn a fixed amount of interest during that period. Where everyday transaction accounts give you the flexibility to deposit and withdraw funds as frequently as you like, term deposits trade flexibility for higher interest rates.

• Once your funds are deposited in a term deposit, they’re fixed for the length of the term, meaning you can’t add additional funds midway through the term.

When can you add money to a term deposit?

When the term deposit matures, you may have the option to add additional funds and roll the funds over for another term, or you may choose to withdraw the money at that point. 

If you have extra funds to invest, you could consider opening an additional short term deposit account or a high-interest savings account.

It’s worth noting that you can withdraw the funds midway through the term, but a penalty is likely to apply. This can contradict the financial benefits of withdrawing the cash

What alternatives are there if you want to boost your savings?

Adding to your savings balance is one investment strategy used by Australians to increase their rate of return. If you are after a lower-risk investment option that allows you to earn interest on your nest egg, and boost your funds when needed, you may want to instead consider a savings account. 

Many savings accounts allow you to earn an interest rate on your nest egg, and may even reward you with higher interest if you do add money to your account. Conditional savings accounts commonly come with requirements for customers to deposit a minimum amount each month to earn their highest rates. 

Some savings accounts may offer a regular, ongoing interest rate without any requirements, if you’re looking for total flexibility in your savings products. Just be sure to keep an eye out for any fees charged that could lower your return, such as withdrawal penalties or account-keeping fees.

Compare term deposits

Provider

Real Time Rating™Min depositInterest rateMaximum rate

$1,000

3.50%

for 3 months

4.95%

for 6 months

More details

Investment Plus

• Promoted
• 2024 Award Winner
• 3 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$5,000

4.75%

for 9 months

4.75%

for 9 months

Special Term Deposit

• 9 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$5,000

1.25%

for 1 month

4.75%

for 8 months

Advance Notice Term Deposit

• 1 month
• Automatic maturity rollover
• Joint application available
• Maturity alert by phone

$5,000

0.10%

for 6 months

0.15%

for 12 months

Term Deposit

• 6 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by phone

$5,000

1.20%

for 1 month

4.45%

for 9 months

Term Deposit

• 1 month
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$5,000

1.25%

for 1 month

4.75%

for 8 months

Term Deposit

• 1 month
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

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