Long term deposits:

 

September 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:

Term length Highest rate (Interest paid at maturity/annually) Highest rate (Interest paid monthly)
Two years 5.55% p.a. (Unity Bank) 5.40% p.a. (Unity Bank)
Three years 5.40% p.a. (Judo Bank) 5.30% p.a. (Judo Bank)
Four years 5.50% p.a. (Judo Bank) 5.40% p.a. (Judo Bank)
Five years 5.50% p.a. (Judo Bank) 5.40% p.a. (Judo Bank)

For more information on how we’ve selected these products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of 6 September 2026 . View disclaimer

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 TagsFeaturesLinkComparePromoted ProductDisclosure
5.55% p.a.
Annually
24 months
$1,000
$1,000,000
–
5.40% p.a.
Annually
24 months
$1,000
$1,000,000
–
5.35% p.a.
Annually
24 months
$5,000
$19,999
–
5.10% p.a.
Annually
24 months
$500
$1,000,000
–
5.05% p.a.
Annually
24 months
$10,000
$1,000,000
–
5.00% p.a.
Annually
24 months
$100,000
$$formattedMaxDeposit.format("%,d",$!{product.maximumDeposit})
–
5.00% p.a.
Annually
24 months
$5,000
$5,000,000
–
4.80% p.a.
Annually
24 months
$250,000
$1,000,000
–
4.75% p.a.
Annually
24 months
$250,000
$1,000,000
–
4.75% p.a.
Annually
24 months
$5,000
$999,999
–
4.70% p.a.
Annually
24 months
$10,000
$5,000,000
–
4.70% p.a.
Annually
24 months
$1,000
$499,999
–
More term deposits
Important Information and Comparison Rate Warning
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 TagsFeaturesLinkComparePromoted ProductDisclosure
5.40% p.a.
Annually
36 months
$1,000
$1,000,000
–
5.10% p.a.
Annually
36 months
$5,000
$9,999,999
–
5.05% p.a.
Annually
36 months
$10,000
$1,000,000
–
5.00% p.a.
Annually
36 months
$5,000
$5,000,000
–
5.00% p.a.
Annually
36 months
$500
$1,000,000
–
5.00% p.a.
Annually
36 months
$5,000
$$formattedMaxDeposit.format("%,d",$!{product.maximumDeposit})
–
4.85% p.a.
Annually
36 months
$1,000
$1,000,000
–
4.75% p.a.
Annually
36 months
$500
$5,000,000
–
4.75% p.a.
Annually
36 months
$250,000
$1,000,000
–
4.75% p.a.
Annually
36 months
$5,000
$999,999
–
4.50% p.a.
Annually
36 months
$1,000
$5,000,000
–
4.25% p.a.
Annually
36 months
$5,000
$1,000,000
–
4.20% p.a.
Annually
36 months
$5,000
$500,000
–
4.20% p.a.
Annually
36 months
$1,000
$500,000
–
4.00% p.a.
Annually
36 months
$1,000
$249,999
–
4.00% p.a.
Annually
36 months
$1,000
$2,000,000
–
4.00% p.a.
Annually
36 months
$5,000
$999,999
–
4.00% p.a.
Annually
36 months
$5,000
$1,000,000
–
4.00% p.a.
Annually
36 months
$1,000
$499,999
–
4.00% p.a.
Annually
36 months
$1,000
$4,999
–
More term deposits
Important Information and Comparison Rate Warning
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 TagsFeaturesLinkComparePromoted ProductDisclosure
5.50% p.a.
Annually
60 months
$1,000
$1,000,000
–
5.15% p.a.
Annually
60 months
$5,000
$10,000,000
–
5.15% p.a.
Annually
60 months
$10,000
$1,000,000
–
5.10% p.a.
Annually
60 months
$1,000
$2,000,000
–
5.00% p.a.
Annually
60 months
$1,000
$10,000,000
–
4.75% p.a.
Annually
60 months
$5,000
$999,999
–
4.70% p.a.
Annually
60 months
$500
$5,000,000
–
4.25% p.a.
Annually
60 months
$1,000
$1,000,000
–
4.20% p.a.
Annually
60 months
$5,000
$5,000,000
–
4.15% p.a.
Annually
60 months
$250,000
$1,000,000
–
4.00% p.a.
Annually
60 months
$5,000
$999,999
–
4.00% p.a.
Annually
60 months
$5,000
$249,999
–
4.00% p.a.
Annually
60 months
$1,000
$249,999
–
4.00% p.a.
Annually
60 months
$1,000
$249,999
–
4.00% p.a.
Annually
60 months
$50,000
$5,000,000
–
4.00% p.a.
Annually
60 months
$1,000
$2,000,000
–
3.95% p.a.
Annually
60 months
$100,000
$249,000
–
3.65% p.a.
Annually
60 months
$1,000
$500,000
–
3.55% p.a.
Annually
60 months
$1,000
$9,999,999
–
3.55% p.a.
Annually
60 months
$5,000
$49,999
–
More term deposits
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning

    On this page

    What is a long term deposit?

    Term deposits are generally classified by duration or, as the name suggests, term. Long-term term deposits typically range from 18 months up to five years, which means the money you lock away is generally not intended to be accessed during this period. 

    Deposits no longer than 12 months, including the popular six-month term deposits, are considered short-term. One-year term deposits are often seen as a medium-term option. 

    Depending on the provider, long-term term deposit rates may be paid monthly, quarterly, semi-annually, annually, or at maturity (end of term). 

    Holding a term deposit for a longer period of time does come with trade-offs. While they can offer competitive or stable returns, you’ll have limited access to your funds during the term. 

    What other term lengths are available?

    Short-term options typically range from:

    • One month
    • Three months
    • Six months
    • Nine to 11 months

    One-year term deposits are often seen as medium-term.

    Anything beyond 12 months is generally considered longer term, such as: 

    • 18 months
    • Two years
    • Three years
    • Four years
    • Five years

    How to compare long term deposits

    When comparing and choosing a long-term term deposit, assess these key factors:

    Interest rate

    The key determinant of long-term deposits is the interest rate offered by banks relative to the length of the term. Even a small difference can significantly affect your returns over time.

    Term length

    Choose a duration that aligns with your financial goals and liquidity needs. Locking away cash you might need in two years in a five-year term deposit may not be the best idea. 

    See also: How does term deposit terms affect your returns

    Flexibility

    That said, consider whether early access is allowed and what penalties apply. Early withdrawal typically results in a reduction in the interest rate earned. 

    Interest payment frequency

    Long-term deposits will offer different frequencies for interest to be paid, such as monthly, quarterly, yearly or at the end of the term. Decide whether you prefer regular income (e.g. monthly payout) or a lump sum at maturity. 

    Minimum deposit requirements

    To open a long-term term deposit, providers typically require a minimum amount. These can vary widely between banks and other providers. Some require as little as $500, while others may require $5,000 or more. 

    Is money in a long term deposit safe?

    Money parked in a term deposit held with Australian banks, credit unions, and building societies that are authorised deposit-taking institutions (ADIs) is covered by the government’s Financial Claims Scheme. This scheme protects deposits up to $250,000 per account holder per ADI in the unlikely event that the institution fails. 

    See also: Are term deposits worth it?

    Long term deposits vs Savings accounts

    Long-term term deposit

    Savings account

    Interest rate

    Fixed for the entire term

    Variable

    Rate certainty

    High (rate is locked during the term)

    Low (rate may rise or fall)

    Access to funds

    Limited

    Flexible

    Early withdrawal

    Will likely result in reduced interest and may require a notice period

    No penalties for withdrawals

    Minimum balance

    Typically $500-$5,000 or more (depending on the provider)

    Often low or no minimum balance

    Government guarantee

    Covered by the Financial Claims Scheme

    Covered by the Financial Claims Scheme

    Best suited for

    Savers seeking to protect returns against falling interest rates and willing to lock funds away for several years

    Savers who want flexibility and easy fund access

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

    • Locking in a fixed rate in uncertain conditions (e.g. rates are expected to fall)
    • Growing your savings securely for longer

    While there are advantages, there are risks as well. 

    • If rates increase you can miss out on some substantial gains. 
    • Should you ever need the money, you’ll have to wait much longer as early withdrawal typically incurs rate reduction depending on how much of your term has elapsed

    Savings accounts, on the other hand, provide easy access to funds. However, as rates are variable, they can rise or fall. And depending on the bank, there may be ongoing conditions (e.g. deposit requirements or limited withdrawals) to earn the full interest. 

    Ultimately, the choice depends on whether you value rate certainty or accessibility. 

    See also: Savings accounts vs term deposits

    Longer term deposits vs Shorter term deposits

    Term deposits with longer term can offer several advantages compared to short-term options, including the following:

    • Greater rate certainty – Locking in a rate for longer protects against declines in interest rates.
    • Potentially higher returns – Some longer terms may offer more competitive rates.
    • Reduced investment risk – You don’t need to continually roll over your deposits when they mature. 

    However, short-term deposits provide more flexibility if market conditions change. If your money is locked in a longer term deposit and rates increase, you could miss out on better returns. 

    How to open a long term deposit

    Opening a long term deposit in Australia is typically straightforward. 

    1. Compare rates and choose a provider. Use comparison sites during your search. 
    2. Choose your term length. Confirm whether you can afford to lock away your cash in an extended period.
    3. Decide on your deposit amount. Make sure you meet the minimum required. 
    4. Apply online or in branch. 
    5. Transfer your funds, and let your money stay put until the deposit matures.

    Features of a long term deposit to look for

    When shopping for options, consider these features:

    • Competitive interest rates
    • Flexible interest payment schedules
    • Low minimum deposit requirements
    • Clear early withdrawal conditions
    • Automatic rollover options at maturity
    1. Take note: Make sure your term deposit provider is an authorised deposit-taking institution (ADI) so your money is backed by the government guarantee.

    Pros of long term deposits

    • Fixed and predictable returns

    Even if the interest rate is reduced by the bank as a result of 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.

    • Interest payment flexibility

    While it may ultimately depend on the provider, long-term term deposits will typically grant you control over when the interest earnings are paid. You can choose whether to receive interest payments monthly or quarterly for regular income or one lump sum at maturity.

    • Fee-free and no ongoing conditions

    Term deposit providers will generally not charge monthly account keeping fees for choosing them to lock away your savings over the long term. Additionally, you do not need to jump through hurdles to meet ongoing conditions to earn interest like you typically do with a bonus savings account. 

    All this means you can grow your savings without additional costs or hassle. 

    • Encourages disciplined saving

    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 locked away.

    Cons of long term deposits

    • Limited access to funds

    Once your term begins, your funds are locked in until the term ends. Should you decide to withdraw your money early, you may have to accept the associated penalty, which is usually rate reduction depending on how much of the term has elapsed. 

    Generally, the earlier you redeem, the bigger the reduction will be. You may also be required to provide at least 31 days’ notice to the bank, so same-day or next-day access may be off the table.

    • Rate rises are not passed on

    If rates fall, you’d find yourself in a favourable position if you were able to lock in a higher interest rate. 

    However, this also means you are locked in at a lower rate until maturity even when the Reserve Bank increases the cash rate and banks follow suit. This could mean missing out on more interest earnings. 

    See also: How inflation affects your term deposit returns

    • No bonus interest opportunities

    While term deposits typically do not require special conditions to be met in order to receive a higher interest rate, there is no opportunity to earn bonus interest as well.

    Looking for a better
    term deposit rate?

    Compare high-rate term deposits
    from leading Australian providers.

    Compare Term Deposits

    Compare more term deposits

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    Dominic Beattie

    Editor

    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 Brooke Cooper. Dominic has more than a decade's experience in the finance media sector, joining Savings.com.au in 2018 to spearhead its launch as a financial comparison service and dedicated source of consumer finance news and guides.