How much you could earn with the highest term deposit rates

The Reserve Bank is tipped to hike the cash rate one or two more times in 2023. While this is bad news for homeowners, savers may finally be enjoying a return on their nest eggs.

RateCity has crunched the numbers on the current highest term deposit rates on its database for 12 month, 3-year and 5-year fixed terms, to see how much you could save with these interest rates. 

With a 12-month term deposit offering 5% interest, your $25,000 deposit could grow by $1,250 through interest earned. That’s an extra grand just for locking away your nest egg and allowing it to mature. 

Term Deposit

• 3 months
• Automatic maturity rollover
• Joint application available

This RateCity Award winner was one of the top-rated 12-month term deposits of 2020.

Interest rate

4.70%

for 3 months

Min deposit

$25,000

More details

FeaturedAustralian Credit Licence: 234517 AMP Bank terms and conditions

How much you could earn with a term deposit

12-month term deposits

RateCity has crunched the numbers on how much interest you could earn on some of the highest-rate term deposit options on its database, based on a $25,000 deposit. 

How much you could earn with 3-year term deposits

How much you could earn with 5-year term deposits

Source: RateCity Term Deposit Calculator. Data accurate as of 03/07/2023. Based on a $25,000 deposit. Hypothetical examples do not factor in fees. 

Understandably, the longer you lock away your savings, the higher your balance could be at the end of the fixed term. However, you will not be able to access those funds until the term deposit reaches maturity, or face a hefty penalty. Term deposits tend to suit those that are willing to be patient and let their money accrue interest.

If you’re a “set and forget” kind of person, a term deposit may be a worthwhile investment to help your nest egg grow. Alternatively, you could consider depositing funds into a savings account with a high ongoing interest rate. Just remember that you may have to meet some conditions to earn the highest rates, such as making minimum deposits and growing your balance each month. 

More Aussies are saving despite rate hikes

APRA data released last week shows deposits from households reached $1.38 trillion in May, a new high in this cycle of cash rate hikes. This is an increase of $5.2 billion from the previous month. 

It appears that as the cash rate continues to climb higher, Australians continue to squirrel money away in the bank. 

Interest rates on term deposits are currently sitting above 5% for many higher-rate options on the RateCity database. And with more cash rate hikes predicted for 2023, it has been tipped that savings accounts may reach 6% by the end of the year. 

Australians may be in a better position to grow their savings than they were before this cycle of rate hikes began - if they can keep up with the rising cost of everything else. 

Compare term deposits

Provider

Real Time Rating™Min depositInterest rateMaximum rate

$1,000

5.15%

for 6 months

5.15%

for 6 months

More details

Personal Term Deposit (At Maturity)

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

$1,000

3.40%

for 3 months

4.40%

for 12 months

More details

Term Deposit

• Promoted
• 3 months
• Automatic maturity rollover
• Joint application available
• Interest payment to other institution

$1,000

2.70%

for 3 months

4.20%

for 24 months

More details

Term Deposit

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

$1,000

2.10%

for 3 months

2.90%

for 24 months

More details

Term Deposits

• Promoted
• 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

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