CommBank is currently the only big four bank to offer a TD rate beginning with a 4.
However, after the RBA voted unanimously to keep the cash rate at 3.60% and less certainty about how many more rate cuts there will be (if any), term deposit rates in general appear to be trending upwards.
Earlier this week, Australian Military Bank and BCU Bank also hiked TD rates, offering returns as high or higher than any other products in the Savings.com.au database.
CommBank's one year rate is still 0.25% lower than Heartland Bank, currently the database's top one year TD return.
Will TD rates keep climbing?
Starting about halfway through last year when it became clear the RBA would shortly be cutting rates, term deposit rates across the board have been declining.
According to RBA data in July 2024 the average one year term deposit rate was 4.50% p.a. - as of October 2025 it had fallen to 3.60% p.a.
Now though, with economists including HSBC's Paul Bloxham and Commonwealth Bank's Belinda Allen predicting the RBA will not cut rates any further, it's plausible Australia might start to see more competitive rates in the TD market.
Three and six month term deposit rates are currently well below what they were in March 2023 when the cash rate was also 3.60%, although it's worth keeping in mind that at that stage the RBA was widely expected to continue hiking rates.
Governor Michele Bullock has not closed the door on hiking rates, telling media after Tuesday's decision that "anything's possible", but the most common forecast is for the cash rate to stay at 3.60% p.a. for a prolonged period, with the possibility of another rate cut next year.
While this would make a return to the halcyon days of TD rates well above 5% p.a. unlikely, it could mean some banks are more comfortable offering rates slightly above than the current levels.
Latest Commonwealth Bank term deposit rates
| Term length | Deposit size | Payment frequency | Interest rate (Change) |
|---|---|---|---|
| One year | $5,000+ | End of term | 3.70% p.a. (+0.20) |
| 13-17 months | $5,000-$49,999 | End of term | 3.65% p.a. (+0.20) |
| 13-17 months | $50,000+ | End of term | 3.70% p.a. (+0.20) |
| One year special offer | $5,000+ | End of term | 4.00% p.a. (+0.20) |
The 'special offer' rate is available to existing retail CommBank customers who open a new term deposit product online.
That means depositing $100,000 now would return $4,000 next November, subject to income tax.
For all other customers, the top one year rate at CBA is 3.70% p.a.
Advertisement
Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for a six-month term.
| Bank | Term Deposit | Interest Rate | Interest Frequency | Term | Automatic Rollover | Maturity Alert | Early Withdrawal Available | Minimum Deposit | Maximum Deposit | Notice Period to Withdraw | Account Keeping Fee | Online Application | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.25% p.a. | At Maturity | 6 months | $5,000 | $19,999 | – | – | |||||||||||||
5.20% p.a. | At Maturity | 6 months | $10,000 | $5,000,000 | – | – | |||||||||||||
5.15% p.a. | At Maturity | 6 months | $1,000 | $1,000,000 | – | – |
