Best Term Deposit Rates Australia (2026)
Top picks by rate, term length, and minimum deposit. Last updated: 18/05/2026
Rates can change without notice. Last verified: 18/05/2026 (AEST). Please confirm details on the bank’s official page.
Term deposits offer a guaranteed rate with no conditions to meet — a clean alternative to savings accounts for money you won't need access to. The right term depends on how long you can lock funds away and your view on where rates are headed. We've ranked the top picks across 12-month, 24-month, and 5-year terms.
Our Top Picks for 2026
Judo BankPersonal Term Deposit
The highest 12-month term deposit rate in our comparison. Judo Bank is a specialist business and personal lender with a track record of top-of-table rates. The 0.05% loyalty bonus for rolling over adds extra value for repeat customers.
Pros
- ✓ Highest 12-month rate (5.45%)
- ✓ Low $1,000 minimum deposit
- ✓ 0.05% loyalty bonus on rollover
- ✓ 2026 Finder Award winner for best 12-month TD
Cons
- ✗ Online only — no branches
- ✗ At maturity interest (no monthly option short-term)
Bank FirstTerm Deposit
The lowest minimum deposit of any lender in our comparison at just $500 — far below the $5,000 floor most banks require. Matches the next-best 12-month rate. Customer-owned (teachers/education sector).
Pros
- ✓ $500 minimum — lowest available
- ✓ Competitive 5.40% for 12 months
- ✓ 2-year rate also available (5.15%)
- ✓ Customer-owned bank
Cons
- ✗ No major bank backing
- ✗ At maturity only for short terms
Unity BankTerm Deposit
The best available rate for locking in for two years — useful if you think rates will fall and want to protect your return. Strong across all terms: 5.15% at 6 months, 5.30% at 12 months, 5.35% at 24 months.
Pros
- ✓ Best 24-month rate (5.35%)
- ✓ Strong across all terms
- ✓ $1,000 minimum
- ✓ Customer-owned bank
Cons
- ✗ No 5-year term available
- ✗ At maturity interest only
Great Southern BankTerm Deposit
The standout 5-year rate at 5.50% p.a. is the best long-term deposit in our comparison — and higher than many 12-month rates. If you're confident rates will fall over the medium term, locking in here for five years could deliver significant value.
Pros
- ✓ 5.50% for 5 years — best long-term rate
- ✓ Also strong at 12 months (5.35%)
- ✓ Customer-owned (formerly CUA)
Cons
- ✗ No 6-month or 2-year terms offered
- ✗ Early withdrawal penalty applies
CommBankTerm Deposit
Australia's largest bank, with branch access, phone support, and the CommBank app. The 12-month special offer rate (5.20%) is competitive for a big four lender. Best for people who want the reassurance of a household name alongside their existing CommBank accounts.
Pros
- ✓ Australia's largest bank
- ✓ Easy to manage with existing CommBank accounts
- ✓ Branch + app access
- ✓ 24-month rate also at 5.20%
Cons
- ✗ Rate lower than challengers (5.20% vs 5.45%)
- ✗ Short-term (3m/6m) rates are significantly lower
Full Term Deposit Comparison
All providers we track, sorted by 12-month rate.
| Provider | 3 months | 6 months | 12 months | 24 months | Min deposit | Review |
|---|---|---|---|---|---|---|
| Judo Bank | 4.90% | 5.20% | 5.45% | — | $1,000 | Review → |
| AMP Bank | — | 5.15% | 5.40% | — | $5,000 | Review → |
| Bank First | 4.90% | 5.20% | 5.40% | 5.15% | $500 | Review → |
| Community First Bank | — | — | 5.40% | — | $10,000 | Review → |
| Macquarie Bank | 4.90% | 5.15% | 5.35% | 3.60% | $5,000 | Review → |
| Great Southern Bank | 5.00% | — | 5.35% | — | $5,000 | Review → |
| Unity Bank | 4.95% | 5.15% | 5.30% | 5.35% | $1,000 | Review → |
| MyState Bank | 4.75% | 5.00% | 5.30% | 5.15% | $5,000 | Review → |
| Newcastle Permanent | 4.50% | 5.00% | 5.25% | 4.00% | $1,000 | Review → |
| ING | 4.75% | 5.05% | 5.30% | — | $10,000 | Review → |
| Suncorp Bank | — | — | 5.30% | — | $5,000 | Review → |
| CommBank | 3.30% | 3.45% | 5.20% | 5.20% | $5,000 | Review → |
| NAB | 3.35% | 3.50% | 5.20% | 5.20% | $5,000 | Review → |
| Westpac | 3.35% | 3.50% | 5.10% | 5.25% | $5,000 | Review → |
| BOQ | — | — | 5.10% | — | $1,000 | Review → |
| Bendigo Bank | 2.75% | 3.00% | 5.10% | 4.50% | $5,000 | Review → |
Rates p.a. at maturity. Verify with provider before applying.
How to Choose a Term Deposit
1. Match the term to when you'll need the money
Term deposits lock your funds for the entire period — early withdrawal triggers a penalty and a reduced rate. Only lock in money you genuinely won't need. An emergency fund belongs in a savings account, not a term deposit.
2. Consider your view on interest rates
If you expect rates to fall, locking in a longer-term deposit now preserves your rate. If you expect rates to rise, a shorter term lets you reinvest sooner at a higher rate. Great Southern Bank's 5.50% 5-year rate is only worthwhile if rates fall below that level in the coming years.
3. Watch the short-term rate gap
Not all banks are equally competitive across all terms. Big-four banks often have strong 12-month rates but much weaker 3- and 6-month rates. Challenger banks like Judo Bank and Bank First tend to be more competitive across all terms.
4. At maturity vs monthly interest
"At maturity" rates are typically 0.10–0.25% p.a. higher than monthly payment options because you're giving the bank use of your interest until the end of the term. Unless you need the income each month, at-maturity rates deliver more.
5. Spread large sums across providers
The government's Financial Claims Scheme protects up to $250,000 per depositor per ADI. If you have more than $250,000 to deposit, split it across multiple institutions to maximise coverage.
In-depth Reviews
- Judo Bank Personal Term Deposit review — 5.45% p.a. for 12 months
- AMP Bank Term Deposit (GO) review — 5.40% p.a. for 12 months
- Bank First Term Deposit review — 5.40% p.a. for 12 months
- Community First Bank Term Deposit review — 5.40% p.a. for 12 months
- Macquarie Bank Term Deposit review — 5.35% p.a. for 12 months
- Great Southern Bank Term Deposit review — 5.35% p.a. for 12 months
- Unity Bank Term Deposit review — 5.35% p.a. for 24 months
- MyState Bank Online Term Deposit review — 5.30% p.a. for 12 months
- Newcastle Permanent Term Deposit review — 5.25% p.a. for 12 months
- ING Term Deposit review — 5.30% p.a. for 12 months
- Suncorp Bank Term Deposit review — 5.30% p.a. for 12 months
- CommBank Term Deposit review — 5.20% p.a. for 12 months (special offer)
- NAB Term Deposit review — 5.20% p.a. for 12 months
- Westpac Term Deposit review — 5.10% p.a. for 12 months (5.00% + 0.10% online bonus)
- BOQ Term Deposit review — 5.10% p.a. for 12 months
- Bendigo Bank Term Deposit review — 5.10% p.a. for 12 months
Frequently Asked Questions
What is the best term deposit rate in Australia right now?
As of May 2026, Judo Bank offers the highest 12-month term deposit rate at 5.45% p.a. For 5-year terms, Great Southern Bank leads at 5.50% p.a. Rates change regularly — check the full comparison table for the latest.
Are term deposits safe in Australia?
Yes. Term deposits with Australian authorised deposit-taking institutions (ADIs) are protected under the Financial Claims Scheme (FCS) up to $250,000 per depositor per institution. This is a federal government guarantee. Judo Bank, AMP, Macquarie, CommBank and all other ADIs are covered.
Should I get a term deposit or a savings account?
A term deposit locks your money for a fixed period at a guaranteed rate — ideal if you have a lump sum you won't need access to. A savings account is more flexible but typically pays a lower rate and conditions must be met each month. If you think interest rates will fall, locking in a term deposit now preserves your rate.
Can I withdraw a term deposit early?
Yes, but penalties apply. Most lenders require notice (typically 31 days) and reduce the interest rate paid for early withdrawal. The penalty varies by lender and how long is remaining on the term. Always read the early withdrawal terms before locking in.
When is interest paid on a term deposit?
For terms up to 12 months, interest is typically paid at maturity (end of term). For longer terms (2+ years), interest is paid annually. At-maturity rates are usually slightly higher than monthly or quarterly payment options because the bank holds the funds for longer.
Related guides
- Best savings accounts — flexible high-interest accounts with no lock-in
- Best home loan rates — variable mortgage rates compared
- Bank cash bonuses — one-off cashback offers up to $4,000
Information is general in nature and may change without notice. Rates verified 18/05/2026. Confirm current rates and terms with each provider before applying. This is not financial advice.