Term Deposit Rates in Australia (2026), Compared by Term
A term deposit provides a guaranteed, fixed rate of return on your funds for a chosen duration. The rates displayed in the comparison table above are collected directly from Australian financial institutions via Consumer Data Right (Open Banking) product reference feeds, refreshed monthly, and presented as indicative figures for factual comparison.
| Bank & product | 3 mos | 6 mos | 12 mos | 24 mos | 36 mos |
|---|---|---|---|---|---|
 SuncorpTerm Deposit | 5.00% | 4.90% | 5.35% | 5.00% | 5.00% |
| JBJudo BankPersonal Term Deposits | 4.90% | 4.95% | 5.35% | 5.40% | 5.40% |
 INGPersonal Term Deposits | 5.05% | 5.20% | 5.30% | 4.70% | – |
 MacquarieMacquarie Term Deposit | 5.05% | 5.15% | 5.30% | 2.00% | 2.00% |
 CommBankStandard Term Deposit | 3.30% | 4.95% | 5.15% | 4.95% | 4.55% |
 NABNAB Term Deposit | 3.35% | 3.50% | 5.15% | 5.00% | 3.80% |
 Great SouthernStandard Rate Term Deposit 1-12 months | 4.90% | 4.55% | 5.10% | – | – |
 BOQPremier Investment Term Deposit | 4.50% | 4.80% | 5.05% | 2.00% | 2.00% |
 WestpacTerm Deposit | 3.25% | 3.40% | 5.05% | – | – |
 MyStateRegular Term Deposit | 4.75% | 4.85% | 5.05% | 5.15% | 4.25% |
 BendigoStandard Term Deposit | 2.75% | 3.00% | 5.00% | 4.50% | 3.00% |
 RabobankOnline Term Deposit | 4.75% | 4.90% | 4.95% | 4.75% | 4.80% |
Fixed annual rates for a $25,000 personal deposit, interest at maturity where available. Sourced from each bank’s Consumer Data Right (Open Banking) feed and indicative only — a – means that term wasn’t published in the feed. Always confirm the current rate and terms with the bank. Last updated 4 September 2026.
Want a rate you can access any time instead? Compare high interest savings accounts → or model returns with the compound interest calculator.
How term deposits work
A term deposit involves depositing a fixed lump sum with an authorised deposit-taking institution (ADI) for an agreed timeframe, ranging from one month to five years. In exchange, the institution provides a fixed interest rate that remains locked for the entire duration, remaining unaffected by any changes the Reserve Bank of Australia makes to the cash rate.
Interest earnings can be structured to pay out periodically—such as monthly, quarterly, or annually—or as a single payment at maturity. Deposits held with any Australian licensed ADI are protected under the Australian Government Financial Claims Scheme (FCS) up to $250,000 per account holder, per licensed institution.
Term deposit vs high-interest savings account
Choosing between a term deposit and a high-interest savings account is primarily a trade-off between certainty and flexibility.
A term deposit locks in an interest rate for a defined period, removing the risk of rate cuts. However, funds cannot be accessed freely before the maturity date without penalty. In contrast, a high-interest savings account allows flexible withdrawals and ongoing deposits, but features a variable rate that the bank can alter at any time. Savings accounts also frequently attach behavioural conditions to their headline rate, such as minimum monthly deposit amounts or debit card transaction requirements.
Depositors seeking fixed returns for a known future outlay often favour term deposits, whereas those requiring access for emergency funds generally utilise savings accounts. Current variable alternatives can be viewed in our savings account comparison.
Choosing a term length
Selecting an appropriate duration involves balancing liquidity needs with market interest rate movements. Shorter terms of three to six months offer frequent access to capital and flexibility if broader interest rates rise, whereas longer terms lock in a predictable return over multiple years if rates decline.
To balance cash availability with longer-term yields, some depositors implement a term deposit ladder. This structure divides a lump sum into multiple tranches invested across different maturity periods—such as three, six, nine, and twelve months. When each deposit matures, the principal can be accessed or reinvested into a new twelve-month term, creating a rolling schedule of liquidity alongside longer-term rates.
Withdrawing funds before the agreed end date generally requires an advance notice period of at least 31 days and typically results in an interest rate reduction or administration adjustment.
Tax and term deposits
Interest earned on term deposits counts as assessable income and is taxed at an individual's marginal tax rate. Australian institutions routinely report interest payments to the Australian Taxation Office (ATO) for data-matching against annual tax returns.
To avoid tax being withheld automatically at the top marginal rate plus the Medicare levy, account holders must provide their Tax File Number (TFN) or an appropriate exemption code. For multi-year terms where interest is compounded and paid solely at maturity, the interest is generally assessable in the financial year it is credited or made available, rather than accrued across preceding years.
Frequently asked questions
Which bank has the highest term deposit rate right now?
The comparison table above ranks banks by their published fixed rate at each term length, straight from Open Banking data. The leading rate changes between terms — a bank can top the 12-month column but not the 6-month one — so compare the specific term you plan to invest for.
Are term deposits safe in Australia?
Deposits with an Australian licensed ADI are protected by the Financial Claims Scheme up to $250,000 per account holder, per institution. Within that cap a term deposit carries no market risk: the rate is fixed and guaranteed for the full term.
Can I withdraw a term deposit early?
Usually only with advance notice (commonly 31 days) and an interest reduction or break cost. If you may need the money sooner, a shorter term or an at-call savings account can suit better. Check the specific product terms before locking funds away.
Is term deposit interest taxed?
Yes. Term deposit interest is assessable income taxed at your marginal rate, and banks report it to the ATO. Provide your Tax File Number to avoid withholding at the top rate.