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Find and compare the latest term deposits in Australia

Compare term deposit rates from a wide range of Australian lenders, and find a term deposit that suits your needs. Start your term deposit comparison at RateCity today

Compare a range of the latest term deposit rates on the market

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Shopping around for the best term deposit may be easier than you think. Rather than spending hours reading through various websites about term deposits, RateCity has done the hard work for you and put the key information in one place. This puts you in the driver’s seat to decide what type of term deposit you want to invest in.

Before you jump into term deposits, there are three main things to consider:

The size of your deposit
The duration of your term
The frequency you want your interest paid
Knowing this information can help you better compare term deposits and find the best options to suit your needs.

How can I find the best term deposit?

Many people like term deposits because they offer returns at a fixed interest rate over a fixed term. This means you can calculate in advance just how much money you should make from interest earned on your term deposit.

If your goal is to earn the most interest on your investment, then the best term deposit for you may be the one with the highest interest rate. However, there are other term deposit features to also consider. Comparing term deposits can help you work out which offers may best suit your needs.

As well as standard term deposits, many banks, building societies and credit unions run ad-hoc specials. These term deposits may offer a higher fixed interest rate for a specific term, but the offers may only be available if you sign up during a limited time, and they may require a minimum or maximum deposit.

Can I withdraw or deposit money during the term?

Not all term deposits let you make additional deposits during the term, or withdraw money without penalty.

Most term deposits effectively lock up your money for the length of the term, so you can’t easily access your money until your deposit “reaches maturity” at the end of the term. After this, you can usually choose to roll your deposit over for another term and keep earning interest at the same rate, or switch to another term deposit that better suits your current situation.

If you do need to withdraw money from a term deposit early, you may need to give advance notice (e.g. 31 days) except in cases of hardship. You may also need to pay a fee, and the interest rate on your remaining deposit may be adjusted down. And in some cases, you may not be able to withdraw any funds during the term unless you close your account.

Because accessing your money early may affect the value offered by your term deposit, if you expect you may need to dip into your term deposit at some stage, the best option for you may be to look for a term deposit that offers penalty-free withdrawals.

It’s not common practice to add extra money to a term deposit once you’ve opened an account. Usually, you open a term deposit with your initial cash contribution and that’s that.

Some banks now give you the option to make additional deposits within a specific timeframe, such as within a week of opening your term deposit, while others let you make deposits at any time.

If you do find a term deposit that allows extra deposits, you might want to find out whether there’s a limit on the number of deposits you can make.

How is interest calculated on my term deposit?

For most term deposits, interest is calculated on the balance of your account at the end of each day, including the day of deposit but excluding the day of withdrawal.

Interest is calculated on your term deposit for a day by dividing the interest rate on the account by 365 (even in a leap year) and multiplying that sum by the account balance on that day.

Interest is calculated daily and can be paid in interim payments. If the term deposit you select is longer than 12 months, interest will be paid at least annually.

Can I choose when interest is paid?

For many term deposits, you can choose when interest is paid. Some special term deposit offers only pay interest at maturity.

Depending on the term, you could opt to have interest paid monthly, quarterly, half-yearly, annually and of course at maturity.

The fixed interest rate you’re paid is often linked to the frequency of interest payments. In other words, the more frequently you want to be paid interest, the lower the rate you may receive.

Alex Ritchie

Personal Finance Editor

Alex Ritchie was a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over six years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

How can I find the best term deposit?

Can I withdraw or deposit money during the term?

Not all term deposits let you make additional deposits during the term, or withdraw money without penalty.

It’s not common practice to add extra money to a term deposit once you’ve opened an account. Usually, you open a term deposit with your initial cash contribution and that’s that.

Some banks now give you the option to make additional deposits within a specific timeframe, such as within a week of opening your term deposit, while others let you make deposits at any time.

If you do find a term deposit that allows extra deposits, you might want to find out whether there’s a limit on the number of deposits you can make.

How is interest calculated on my term deposit?

For most term deposits, interest is calculated on the balance of your account at the end of each day, including the day of deposit but excluding the day of withdrawal.

Interest is calculated on your term deposit for a day by dividing the interest rate on the account by 365 (even in a leap year) and multiplying that sum by the account balance on that day.

Interest is calculated daily and can be paid in interim payments. If the term deposit you select is longer than 12 months, interest will be paid at least annually.

Find and compare the latest term deposits in Australia

Compare a range of the latest term deposit rates on the market

Providers we compare

On this page

How can I find the best term deposit?

Can I withdraw or deposit money during the term?

How is interest calculated on my term deposit?

Can I choose when interest is paid?

Share this page

Latest term deposits articles

What happens when a term deposit matures?

Is a term deposit an asset?

Can you break a term deposit?

The benefits of short-term deposits

Alternative investments to term deposits

Did you find this page helpful?

Compare a range of the latest term deposit rates on the market

On this page

How can I find the best term deposit?

Can I withdraw or deposit money during the term?

How is interest calculated on my term deposit?

Can I choose when interest is paid?

Share this page

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