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The table below displays a snapshot of some of the highest term deposit interest rates around for one-year terms.

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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
4.10% p.a.
Annually
12 months
$25,000
$1,000,000
–
4.00% p.a.
Annually
12 months
$1,000
$1,000,000
–
3.95% p.a.
Annually
12 months
$25,000
$10,000,000
–
4.00% p.a.
Annually
12 months
$1,000
$0
–
3.90% p.a.
Annually
12 months
$5,000
$25,000
–
3.95% p.a.
Annually
12 months
$10,000
$5,000,000
–
3.70% p.a.
Annually
12 months
$1,000
$5,000,000
–
4.10% p.a.
Annually
12 months
$1,000
$999,999
–
4.30% p.a.
Annually
12 months
$1,000
$800,000
–
3.85% p.a.
Annually
12 months
$250,000
$500,000
–
3.90% p.a.
Annually
12 months
$5,000
$10,000
–
4.10% p.a.
Annually
12 months
$250,000
$1,000,000
–
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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

Best July One Year Term Deposit Interest Rates & Deals

Term deposit rates had been dropping well before the Reserve Bank of Australia announced its 2025 cash rate cuts.

Twelve month rates are now under the 4.50% p.a. mark and liable to further plunge as the year progresses.

Here are the highest one-year term deposit rates available in our database:

Bank Minimum deposit Payment frequency Rate
G&C Mutual Bank $1,000 End of term 4.10% p.a.
Unity Bank $1,000 End of term 4.10% p.a.
Australian Military Bank $1,000 End of term 4.10% p.a.
Judo Bank $1,000 End of term 4.15% p.a.
Heartland Bank $25,000 End of term 4.25% p.a.

Rates correct as of 1 July.

What is a 12-month term deposit?

As the name suggests, a 12-month term deposit is a bank deposit that locks away your money for one year, which is the period of time known as the term. This means for one year, you generally won’t be able to touch the money you deposit, but in exchange you will earn a fixed amount of interest over this period.

For example, a 4.00% p.a. term deposit for 12 months would return $400 in interest over the term if you deposited a total of $10,000.

Twelve-month term deposits are considered to be the upper limit for ‘short’ term deposits. Other terms considered short-term offered by banks range from one-month to 11 months, with 6-month terms usually being the most popular.

Any longer than this and you’ll be getting a ‘long' term deposit, such as:

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

While some banks offer term deposits for up to seven years, five is generally the longest term offered to the general public.

What interest rate can you get with a 12-month term deposit?

While the rates in offer for a 12-month term deposit may not be quite as high as what is offered with a five year term deposit, you'll likely receive a higher interest rate than what is offered with a shorter term deposit i.e. three or six months.

Essentially, it all comes down to what you're after. Do you want a shorter term deposit with a lower interest rate so you can access your funds sooner? Or are you looking for a more permanent option like a 12-month term deposit? To start your search, compare some of the highest interest rates for term deposits from leading Australian banks.

So how do 12-month term deposit rates compare to other terms?

The general rule is ‘the longer the term the higher the rate.' However, it pays to do your own due diligence to find out what different lenders are offering for different terms and whether this is the case.

Why should you pick a 12-month term deposit?

Perhaps the biggest reason to pick a one-year term deposit is that it could provide the best of both worlds. One-year is short enough to be considered a short-term investment, while the interest rates on offer are equal (if not better) than some longer-term deposits. Also, with a 12-month term deposit, you're less likely to fall to temptation and break the term before its end date, which can incur hefty fees and interest deductions.

What about shorter terms?

Short term deposits (terms shorter than a year) often earn less interest but can still be a quick and easy way to earn something on your spare cash. They can be good for short-term savings goals, like for a holiday or for Christmas presents, but you could argue savings accounts are also good for this while being a more flexible product.

Short term deposits also mean you might not have to worry as much about potentially breaking from the term deposit early, which is a flaw with longer terms.

Should you pick a longer-term deposit?

Term deposits are available from most banks for terms of up to five (and sometimes seven) years, which is a long time to have your money locked away. Should you need this money in an emergency, for example, you’d probably have to suffer an interest rate reduction relevant to how much of your term has elapsed, as well as providing at least 31 days of notice to the bank.

Percentage of the term 

elapsed

Interest rate reduction

0% to 20%

90%

20% to 40%

80%

40% to 60%

60%

60% to 80%

40%

80% to 100%

20%

A common example of how banks lower your interest rate if you decide to cash out from a term deposit early.

But there are benefits to long-term deposits. For one, it’s possible to get higher interest rates, and two, they’re also useful for avoiding interest rate cuts. If you took out a two-year term deposit at 4.00% 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. However, this also means you could miss out on potential interest rate increases.

The pros and cons of short vs long-term deposits

Here’s a summary of the advantages and disadvantages of short and long-term deposits:

 

Short

Long

Pros
  • Short terns up to one-year can have rates that are competitive with longer terms
  • Money isn’t locked away for too long
  • Useful for short-term savings goals
  • Are more flexible than long-term deposits
  • Leading interest rates tend to be higher than those of shorter terms
  • More useful for disciplined savers
  • Good for long-term savings goals
  • Can avoid future cash rate cuts over the long-term

Cons
  • Leading rates aren’t as high as longer-term deposits
  • Not as useful for long-term savings goals
  • Not all long-term deposits have good rates
  • Are less flexible - there’s more of a chance you’ll need to withdraw during the term
  • Greater likelihood of missing out on future cash rate rises

Both short and long-term deposits can automatically roll over when the term expires, which may be a bad thing if you don’t want to commit to another one!

Savings.com.au’s two cents

A one-year term deposit could be a good choice for someone looking to safely invest their money and get a decent return on it.

Before committing your money to a term deposit, ask the following questions:

  • What are you saving for?
  • What kind of interest rate are you after?
  • How long can you afford to not touch that money for?
  • And what will happen to the cash rate while the money is in there?

The most important thing with a term deposit, however, is to get a good rate. Our list of highest term deposit rates is a good place to start comparing what's on offer from different lenders.

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Guides & Tips

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Finance Journalist

Harry joined Infochoice Group in November 2022 as a financial journalist. He's fascinated by economics, having completed a Bachelors Degree in 2021, and enjoys helping other people try to make sense of the financial system.