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- Long term deposits paying 3.40%, short term deposits 2.85%
Long term deposits paying 3.40%, short term deposits 2.85%
Five-year term deposits are currently paying up to 55 basis points more in interest than six-month term deposits, a new analysis has found.
Rabobank and RaboDirect are offering 3.40 per cent for five-year term deposits (see table below).
That would turn a $5,000 investment into $5,850 at the end of the five-year term.
Greater Bank is offering 3.10 per cent, which would turn $5,000 into $5,775.
Some other lenders are paying 3.00 per cent for five-year term deposits: Australian Unity, G&C Mutual Bank, Heritage Bank, IMB Bank, ME Bank, People’s Choice Credit Union and RACQ Bank.
Five-year term deposits
| Lender | Interest rate | Final total |
|---|---|---|
| Rabobank | 3.40% | $5,850 |
| RaboDirect | 3.40% | $5,850 |
| Greater Bank | 3.10% | $5,775 |
| Australian Unity | 3.00% | $5,750 |
| G&C Mutual Bank | 3.00% | $5,750 |
| Heritage Bank | 3.00% | $5,750 |
| IMB Bank | 3.00% | $5,750 |
| ME Bank | 3.00% | $5,750 |
| People’s Choice Credit Union | 3.00% | $5,750 |
| RACQ Bank | 3.00% | $5,750 |
If you want to invest $5,000 for just six months, even high-interest term deposits have a ‘2’ in front of them (see table below).
Arab Bank Australia and Bank of Sydney are paying 2.85 per cent for six-month term deposits, which would turn a $5,000 investment into a $5,071.25 payout.
ME Bank is paying 2.80 per cent, which produces a final return of $5,070.
Several lenders are offering six-month term deposit interest rates of 2.75 per cent, including
Rural Bank One, UBank and Firstmac.
MyState Bank is close behind, with an interest rate of 2.70 per cent.
Six-month term deposits
| Lender | Interest rate | Final total |
|---|---|---|
| Arab Bank Australia | 2.85% | $5,071.25 |
| Bank of Sydney | 2.85% | $5,071.25 |
| ME Bank | 2.80% | $5,070 |
| Rural Bank One | 2.75% | $5,068.75 |
| UBank | 2.75% | $5,068.75 |
| Firstmac | 2.75% | $5,068.75 |
| MyState Bank | 2.70% | $5,067.50 |
Please note that the term deposit with the highest interest rate may not be the best term deposit for every borrower.
Disclaimer
This article is over two years old, last updated on December 16, 2018. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent term deposits articles.
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Product database updated 31 Dec, 2024
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