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Hot April Long Term Deposit Rates and Deals

Opening a term deposit means guaranteed returns at a fixed rate. While shorter terms can be more popular, many banks also offer term deposits that go for more than a year, sometimes up to five years.

Here are our picks for the top long term deposit products available on our database at the moment:

  • Judo Bank Two Year Term Deposit: 4.60% p.a. (Interest paid annually)
  • Judo Bank Three Year Term Deposit: 4.50% p.a. (Interest paid annually)
  • Rabobank Five Year Term Deposit: 4.65% p.a. (Interest paid annually)

Rates correct as of 4 April

Long term deposits:

 

2-year term deposit interest rates

Update resultsUpdate
Filters
BankTerm DepositInterest Rate Interest Frequency Term Automatic Rollover Maturity Alert Early Withdrawal Available Minimum Deposit Maximum Deposit Notice Period to Withdraw Online Application Joint Application TagsRow TagsFeaturesLinkComparePromoted ProductDisclosure
4.30% p.a.
Annually
24 months
$1,000
$1,000,000
–
4.30% p.a.
Annually
24 months
$10,000
$50,000,000
–
4.05% p.a.
Annually
24 months
$25,000
$1,000,000
–
3.90% p.a.
Annually
24 months
$250,000
$1,000,000
–
3.80% p.a.
Annually
24 months
$10,000
$5,000,000
–
4.00% p.a.
Annually
24 months
$1,000
$1,000,000
–
3.90% p.a.
Annually
24 months
$5,000
$19,999
–
4.25% p.a.
Annually
24 months
$10,000
$800,000
–
4.25% p.a.
Annually
24 months
$1,000
$800,000
–
4.25% p.a.
Annually
24 months
$100,000
$800,000
–
3.80% p.a.
Annually
24 months
$500
$1,000,000
–
3.70% p.a.
Annually
24 months
$1,000
$50,000,000
–
More term deposits
  • $0 monthly account fee
  • Choose your own term with options from one month to five years.
  • Guaranteed rate of return

More details
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

3-year term deposit interest rates

Update resultsUpdate
Filters
BankTerm DepositInterest Rate Interest Frequency Term Automatic Rollover Maturity Alert Early Withdrawal Available Minimum Deposit Maximum Deposit Notice Period to Withdraw Online Application Joint Application TagsRow TagsFeaturesLinkComparePromoted ProductDisclosure
4.20% p.a.
Annually
36 months
$1,000
$1,000,000
–
3.80% p.a.
Annually
36 months
$25,000
$1,000,000
–
4.10% p.a.
Annually
36 months
$10,000
$50,000,000
–
3.80% p.a.
Annually
36 months
$250,000
$1,000,000
–
3.75% p.a.
Annually
36 months
$5,000
$999,999
–
4.00% p.a.
Annually
36 months
$1,000
$1,000,000
–
4.00% p.a.
Annually
36 months
$5,000
$1,000,000
–
3.80% p.a.
Annually
36 months
$500
$5,000,000
–
3.80% p.a.
Annually
36 months
$1,000
$4,999
–
3.80% p.a.
Annually
36 months
$5,000
$1,000,000
–
3.80% p.a.
Annually
36 months
$1,000
$1,000,000
–
4.00% p.a.
Annually
36 months
$5,000
$5,000,000
–
3.80% p.a.
Annually
36 months
$500
$1,000,000
–
4.00% p.a.
Annually
36 months
$1,000
$9,999,999
–
4.00% p.a.
Annually
36 months
$50,000
$5,000,000
–
4.00% p.a.
Annually
36 months
$1,000
$499,999
–
3.80% p.a.
Annually
36 months
$1,000
$4,999
–
3.80% p.a.
Annually
36 months
$5,000
$1,000,000
–
4.00% p.a.
Annually
36 months
$5,000
$49,999
–
3.25% p.a.
Annually
36 months
$5,000
$500,000
–
More term deposits
  • $0 monthly account fee
  • Choose your own term with options from one month to five years.
  • Guaranteed rate of return

More details
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

5-year term deposit interest rates

Update resultsUpdate
Filters
BankTerm DepositInterest Rate Interest Frequency Term Automatic Rollover Maturity Alert Early Withdrawal Available Minimum Deposit Maximum Deposit Notice Period to Withdraw Online Application Joint Application TagsRow TagsFeaturesLinkComparePromoted ProductDisclosure
4.25% p.a.
Annually
60 months
$1,000
$1,000,000
–
3.70% p.a.
Annually
60 months
$25,000
$1,000,000
–
4.30% p.a.
Annually
60 months
$1,000
$2,000,000
–
4.00% p.a.
Annually
60 months
$5,000
$1,000,000
–
3.80% p.a.
Annually
60 months
$500
$5,000,000
–
4.00% p.a.
Annually
60 months
$5,000
$5,000,000
–
4.00% p.a.
Annually
60 months
$1,000
$9,999,999
–
4.00% p.a.
Annually
60 months
$5,000
$999,999
–
4.00% p.a.
Annually
60 months
$5,000
$49,999
–
4.00% p.a.
Annually
60 months
$1,000
$1,000,000
–
3.50% p.a.
Annually
60 months
$1,000
$1,000,000
–
3.90% p.a.
Annually
60 months
$1,000
$0
–
3.90% p.a.
Annually
60 months
$5,000
$999,999
–
3.25% p.a.
Annually
60 months
$5,000
$500,000
–
3.85% p.a.
Annually
60 months
$5,000
$5,000,000
–
3.50% p.a.
Annually
60 months
$250,000
$1,000,000
–
3.75% p.a.
Annually
60 months
$1,000
$10,000,000
–
3.80% p.a.
Annually
60 months
$5,000
$1,000,000
–
3.50% p.a.
Annually
60 months
$50,000
$199,999
–
3.65% p.a.
Annually
60 months
$1,000
$500,000
–
More term deposits
  • $0 monthly account fee
  • Choose your own term with options from one month to five years.
  • Guaranteed rate of return

More details
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

    What is a long term deposit?

    While term deposits in the short term are generally classified as those ranging from 6-months to 1-year, long term deposits will last greater than a year. Typically with most banks, long term deposits will range in their offerings, however terms ranging from 18 months all the way to five years are amongst the most common. Typically with longer term deposits, interest is paid either monthly, quarterly, semi-annually or annually.

    Holding a term deposit for a longer period of time is not without its risks, as you have to wait longer before you can access your money. But as we’ve showcased above, you can often access some higher interest rates.

    Is a long term deposit the best option for my savings?

    Long term deposits present a number of enticing positives as a safe place to store your savings in the long term. These include:

    • Offering higher interest rates.

    • Opportunity to store your money away securely for longer.

    • Help you avoid interest rate uncertainty, particularly future interest rate decreases.

    On the other hand, if rates increase you can miss out on some substantial gains, as term deposit rates are always fixed. Plus, should you ever need the money, you’ll have much longer to wait unless you’re prepared to fork out the costs of early termination fees.

    As an example, if you took out a two-year term deposit at a rate of 4.50% p.a. and interest rates decreased by 25 basis points in the second year to 3.75%, you'd still be locked in with the initial rate.

    Before considering a long term deposit as a secure place for your savings, it is important to first consider your financial goals, product flexibility and the likelihood you will require these funds in the short-term.

    Pros and cons of long term deposits

    Pros

    • Interest payment flexibility: While it may ultimately depend on the offerings available by the bank, long term term deposits will typically grant you control over when the interest payments are applied. This means you can choose whether interest payments are made monthly, quarterly, annually or even in one lump sum at the end of your term.

    • Fee-free: Banks will not charge monthly account keeping fees for choosing them to lock away your savings over the long term.

    • Greater interest rates: Generally, longer terms offer higher interest rates.

    • Saving incentives: If your savings were in a regular savings account linked to a debit card, the temptation is always there to potentially dip into them to meet necessary expenses. With long term deposits, penalties are often in place for withdrawing your money early providing a good incentive to keep your money invested in the term deposit.

    • Interest is fixed: Even if the interest rate is reduced by the bank as a result in changes to funding or the cash rate, you'll continue to earn the fixed rate that was applied when you first opened the term deposit.

    • Hassle-free investment: With a long term deposit, you don't need to continue to meet any monthly deposit requirements like you do with a bonus savings account to achieve a specific interest rate.

    Cons

    • Unable to receive bonus interest: As mentioned above, while term deposits do not require special conditions to be met in order to receive a higher interest rate, there is no opportunity to earn bonus interest.

    • Accessing funds requires a fee: If you require access to funds in a long term deposit, early termination fees will likely apply. This could result in foregoing interest for the duration of the deposit.

    • Rate rises are not passed on: Given the interest rate is fixed, if the Reserve Bank increases the cash rate and banks follow suit, you will be remain on the initial deposit rate until the term reaches maturity.

    Comparing long term deposits

    Interest rate

    The key determinant to long term deposits is the interest rate offered by banks relative to the length of the deposit. Ensure you compare the offerings before signing up as this will make a significant difference to your savings balance over the next few years.

    Interest repayment frequency

    Long term deposits will offer different frequencies for your deposit to receive interest, such as monthly, yearly or at the end of the term. Keep in mind though that the highest interest rates are often reserved for those receiving interest at the end of the term.

    Minimum balance

    To receive a particular interest rate across the long term, some banks will require customers to have a significant amount of savings available to deposit. At minimum, a number of mutual banks will require an initial deposit of $500 to kick start your deposit journey, however it’s important to note this amount will differ considerably.

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    Editor at Savings.com.au

    Dominic Beattie is the Editor of Savings.com.au, Group Editor for the wider InfoChoice Group, and host of The Savings Tip Jar podcast alongside Harrison Astbury. Previously working as a finance journalist, Dominic has been publishing articles on finance, business and economics since 2015, and helped launch Savings.com.au as finance news and comparison site in 2018.