Compare term deposits for amounts over $1 million

Most advertised term deposits offer a fixed rate of interest based on the length of the term, rather than the size of the deposit. In other words, whether you invest $5000 or $1 million in a term deposit, the interest rate will often be the same. The more money you can deposit, the more interest you can potentially earn at this fixed rate.

There are some term deposits with maximum limits on how much you can invest. This might rule you out if you have a deposit over $1 million. Term deposits that accept larger investments may also have other restrictions, such as offering fewer choices around how frequently your interest is paid.

However, a larger deposit doesn’t automatically rule out investing in a term deposit. It may even give you more bargaining power to negotiate a better deal.

If you have more than $1 million that you’re looking to invest in a term deposit, you may want to compare the interest rates, features and benefits of the available offers, then speak to each bank individually to learn more.

Under the federal government’s Financial Claims Scheme (FCS), deposits are protected up to $250,000 for each account holder at each bank, building society or credit union, including deposits with any other banking businesses they operate under a different trading name.

If you hold deposits with the same Authorised Deposit-taking Institution (ADI) that are over the $250,000 FCS limit, and that ADI went out of business, the excess amount over $250,000 will not be protected under the FCS, but may be claimed in any subsequent liquidation process.

It’s your choice whether you want to spread your cash investment across several term deposits, or keep this money in one place. It’s possible that choosing several smaller term deposits may help reduce your risk of financial loss and/or litigation if the worst should happen.

Term deposit interest rates are fixed in advance, unlike variable rates, which can rise or fall over time. This means that you should still earn the same amount of interest on your term deposit, even if the economy means your bank is hiking or cutting its other interest rates. 

Longer term deposits often have higher interest rates than shorter term deposits. You may also be offered a higher interest rate if the term deposit has a higher minimum amount. For example, a 3-year term deposit with a $100,000 minimum may offer a higher interest rate than a 3-month term deposit with a $1000 minimum.

The frequency of your interest payments could also affect what fixed interest rate you’re offered on your term deposit. You may be able to choose between receiving your interest earnings monthly, quarterly, half-yearly, annually or at maturity (at the end of the term). Generally, the more frequently you want the interest paid, the lower the interest rate you may be offered on a term deposit. 

Also, if your term deposit lets you withdraw part of your money before the term is up, doing so may reduce the rate you’ll earn interest on your remaining balance. 

Once your term deposit matures, if you choose to invest your funds for a new term, a different rate may apply. Comparing different term deposit offers may be helpful if you want to find the best option for your needs.  

It usually doesn’t take long to apply for a term deposit. Many banks will let you apply for a term deposit online. However, for larger investments of $1 million or more, you might have to visit a branch and apply in person.

Some banks, building societies and credit unions may not publish or advertise their interest rates for larger term deposits. To learn more, you may have to discuss this in person at a branch.