The highest term deposit rate in Australia right now is 5.10% p.a., with the best rates sitting between 4.50% and 4.80% p.a. depending on the term length, deposit amount, and institution. Below is a complete breakdown of the best rates available right now, updated hourly using data sourced directly from Australian banks via the Consumer Data Right (CDR) API.
Why Term Deposits Still Make Sense in 2026
With the RBA cash rate at 3.85%, term deposits remain one of the simplest and safest ways to earn guaranteed interest on your savings. Unlike savings accounts, the rate is locked in for the full term - meaning your return is predictable regardless of what the RBA does next.
The trade-off is liquidity. Your money is tied up for the duration, and early withdrawal usually means a penalty. That makes choosing the right term and the right rate critical.
Best Term Deposit Rates by Term Length
3-Month Term Deposits
Short-term deposits are ideal if you want flexibility but still want better-than-savings rates. These are popular with investors who expect rates to change soon and don't want to lock in for too long.
| Bank | Product | Term | Rate | Min Deposit |
|---|---|---|---|---|
| Term Deposit | 6 months | 4.82% | $5,000 | |
| Term Deposit | 6 months | 4.80% | $1,000 | |
| Term Deposit | 6 months | 4.80% | $1,000 | |
| Macquarie Term Deposit | 6 months | 4.75% | $5,000 | |
| Term Deposit | 6 months | 4.75% | $1,000 | |
| Term Deposits | 6 months | 4.75% | $5,000 |
6-Month Term Deposits
The sweet spot for many depositors. Six-month terms often offer competitive rates without the year-long commitment.
| Bank | Product | Term | Rate | Min Deposit |
|---|---|---|---|---|
| Online Term Deposit | 5 years | 5.10% | $1,000,000.01 | |
| Online Term Deposit | 5 years | 5.10% | $500,000.01 | |
| Online Term Deposit | 5 years | 5.05% | $1,000,000.01 | |
| Online Term Deposit | 5 years | 5.05% | $500,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $250,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $1,000,000.01 |
12-Month Term Deposits
The most popular term length. One-year deposits typically attract the highest promotional rates as banks compete aggressively for this segment.
| Bank | Product | Rate | Min Deposit |
|---|---|---|---|
| Term Deposit | 4.93% | $5,000 | |
| Macquarie Term Deposit | 4.90% | $5,000 | |
| Term Deposit | 4.90% | $1,000 | |
| Term Deposit | 4.90% | $1,000 | |
 Judo Bank | Personal Term Deposits | 4.85% | $1,000 |
| Term Deposit | 4.85% | $1,000 |
2-Year and Longer Term Deposits
Longer terms lock in your rate for extended periods. These are worth considering if you believe rates will fall, but they come with greater opportunity cost if rates rise.
| Bank | Product | Term | Rate | Min Deposit |
|---|---|---|---|---|
| Online Term Deposit | 5 years | 5.10% | $1,000,000.01 | |
| Online Term Deposit | 5 years | 5.10% | $500,000.01 | |
| Online Term Deposit | 5 years | 5.05% | $1,000,000.01 | |
| Online Term Deposit | 5 years | 5.05% | $500,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $250,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $1,000,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $100,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $500,000.01 |
Big 4 Banks vs Smaller Institutions
The Big Four (CommBank, ANZ, NAB, Westpac) rarely offer the highest term deposit rates. Their rates typically sit 0.30% to 0.80% below the market leaders. However, they offer the convenience of existing banking relationships and well-established digital platforms.
Smaller banks, credit unions, and mutual banks consistently lead on rates. Institutions like Judo Bank, Macquarie, and various credit unions often top the tables. Importantly, all ADIs are covered by the same $250,000 government guarantee, so your money carries the same protection regardless of the bank's size.
How to Choose the Right Term Deposit
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Match the term to your timeline. Only lock away money you genuinely won't need. If you're saving for a house deposit in 9 months, a 6-month term is safer than a 12-month.
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Compare the effective rate after tax. A 5.00% rate for someone on the 30% marginal rate (post-Stage 3 tax cuts) yields about 3.50% after tax. Make sure you're comparing apples to apples.
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Check the early withdrawal penalty. Some banks are more punitive than others. If there's any chance you'll need the money early, favour banks with milder penalties.
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Consider a laddering strategy. Instead of putting all your money into one term, split it across multiple terms (e.g., 3-month, 6-month, 12-month). This gives you regular access to maturing funds. See our Term Deposit Laddering Guide for a full walkthrough.
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Watch the rollover terms. Many banks automatically roll over your deposit at maturity, often at a lower rate. Set a calendar reminder to review before the grace period ends.
What Happens at Maturity?
When your term deposit matures, you typically have a grace period of 1 to 7 days to decide what to do. Your options are:
- Withdraw the principal and interest to your linked account
- Roll over at the current rate for the same or a different term
- Partially withdraw and roll over the remainder
If you do nothing, most banks will automatically roll the deposit over at the prevailing rate, which is often lower than promotional rates offered to new deposits.
Final Verdict: Which Term Deposit Should You Choose?
Term deposits are a low-risk, predictable way to earn interest in 2026. The best rates are consistently found at smaller ADIs, not the Big Four. Use the tables above to compare current rates, and consider a laddering approach if you want to balance returns with flexibility.
Frequently Asked Questions
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