Which Australian Bank Has the Best Term Deposit Rates in 2025 – A Complete Guide for Savers

Which Term Deposit Rates Should Australians Choose?

Choosing the right term deposit in Australia has never been more important, with banks offering a wide spread of rates despite the Reserve Bank of Australia (RBA) holding the cash rate steady at 3.60% as of 2025.

Recent data from APRA shows household deposits climbing to a record $1.64 trillion in 2025, giving banks less incentive to aggressively bid for depositors’ money.

Still, competition is alive, and some institutions are standing out with strong offers.

For shorter terms, MOVE Bank leads with ~4.35% p.a. for 6 months, closely matched by Bank of Sydney and Gateway Bank at 4.25% p.a..

In the popular 12-month bracket, Judo Bank offers around 4.75% p.a., while Unity sits at 4.60% and ING at 4.25%.

Longer commitments remain attractive too: ING provides about 4.00% p.a. over 2 years, while Judo and Rabobank reach ~4.30% p.a. for 5-year terms.

Comparison platforms like RateCity and Mozo corroborate these ranges, showing market leaders advertising up to 4.55%.

However, RBA averages still lag at roughly 3–4%, proving that shopping around can add hundreds of dollars in extra interest.

With forecasts suggesting the RBA will hold steady rather than raise rates further in 2025, term deposit pricing is likely to drift sideways or soften slightly.

This makes now an ideal time for savers to lock in competitive returns if it matches their liquidity needs.

Judo Bank – Leading the Market

Term deposits remain one of the most reliable savings products for Australians, offering a guaranteed return protected under the government’s Financial Claims Scheme (up to $250,000 per depositor per institution). Among the challenger banks, Judo Bank has emerged as a consistent leader in term deposit rates, often outpacing the “Big Four” banks.

For an investor looking to deposit $100,000, Judo Bank provides competitive interest rates across short-, medium-, and long-term options. As of 2025, Judo Bank offers around 3.90% p.a. for a 12-month deposit and up to 4.30% p.a. for a 5-year term.

Why Judo Bank is Competitive

• Higher yields: Judo’s 12-month rates (~3.90%–4.75% p.a.) exceed most Big Four offerings (~3.65%–3.80% p.a.).
  
• Flexibility: Terms range from 3 months to 5 years, with options for monthly, annual, or maturity-only interest payments.
  
• Government guarantee: Deposits up to $250,000 are protected under Australia’s Financial Claims Scheme.
  
• Accessibility: Minimum deposits start around $1,000, making it suitable for both small and large investors.
  

Example: $100,000 Term Deposit Returns

The table below shows how much interest a $100,000 deposit could generate with Judo Bank across different terms:

Real-World Example

Imagine an investor deposits $100,000 for 5 years at 4.30% p.a.:

• Annual interest: $4,300
  
• Total return: $21,500 (before tax)
  
• With annual compounding: ~ $23,530 total return
  

By comparison, placing the same $100,000 in a Big Four bank 12-month term deposit at ~3.70% p.a. would earn just $3,700 — nearly $600 less than Judo’s 12-month option.

Judo Bank’s term deposit is a strong option for Australians seeking secure, higher-than-average returns. 

A $100,000 deposit can generate between $3,900 and $4,300 annually, depending on the chosen term, with the assurance of government-backed protection. 

For savers comfortable locking funds away, Judo provides one of the best fixed-income opportunities in the current market.

Unity Bank – Strong 1-Year Choice

Term deposits are a trusted savings choice for Australians who prefer security, fixed returns, and government-backed protection. Unity Bank, a member-owned bank, has consistently provided competitive term deposit rates compared to major banks. 

With deposit protection under the Financial Claims Scheme (up to $250,000 per depositor per ADI), Unity Bank offers a safe and predictable way to grow funds.

For an investor placing $100,000, Unity Bank’s term deposit products provide flexible options ranging from 3 months to 5 years. As of 2025, Unity Bank is offering rates around 3.85% p.a. for 12 months and up to 4.05% p.a. for 6 months (when interest is paid at maturity).

Why Unity Bank is Attractive

• Competitive short-term rates: 6-month term at 4.05% p.a. is higher than many big four banks.
  
• Low entry barrier: Minimum deposit starts from just A$1,000.
  
• Deposit protection: Covered by the Australian Government guarantee up to A$250,000.
  
• Payment flexibility: Interest can be paid at maturity, annually, or monthly (though monthly options may carry slightly lower rates).
  

Example: $100,000 Term Deposit Returns

The table below illustrates potential returns with Unity Bank across selected terms.

Real-World Example

If an investor deposits $100,000 for 12 months at 3.85% p.a., they will earn $3,850 in interest.

• If the same deposit is placed for 6 months at 4.05%, the payout would be $2,025 after six months.
  
• Rolling over the 6-month term deposit twice in a year could potentially yield a combined return of ~$4,050, slightly higher than the 12-month option if rates remain stable.
  

By comparison, a major bank’s 12-month term deposit at ~3.70% p.a. would only return $3,700, making Unity Bank’s offer more attractive.

For Australians with $100,000 to invest, Unity Bank’s term deposit is a low-risk, competitive choice. Returns between $2,025 and $3,850 (depending on term) provide certainty and government-backed safety. 

Short-term investors may benefit more from the 6-month option, while long-term savers can lock in stable income for up to 5 years.

Bank Australia – Ethical Banking Option

Bank Australia is a customer-owned bank that appeals to socially and environmentally conscious Australians. Alongside its ethical focus, the bank offers competitive term deposit rates, particularly for short-term investments. 

Term deposits are government-guaranteed up to $250,000 per depositor per ADI, making them a safe and predictable way to grow savings.

As of 2025, Bank Australia is offering 4.15% p.a. for 3- and 6-month deposits, 4.10% p.a. for 12 months, and around 3.80% p.a. for 24-month terms. For an investor with $100,000, these translate into meaningful but fixed returns.

Why Bank Australia Stands Out

• High short-term yields: 3- and 6-month deposits at 4.15% p.a. are competitive.
  
• Ethical banking model: Profits are reinvested into social and environmental causes.
  
• Low entry requirement: Term deposits start from as little as A$1,000.
  
• Government protection: Eligible deposits covered under the Financial Claims Scheme.
  

$100,000 Term Deposit Returns at Bank Australia

Real-World Example

Suppose you invest $100,000 for 12 months at 4.10% p.a.. By the end of the year, you’ll receive $4,100 in interest.

If instead you choose a 6-month term at 4.15%, the payout will be $2,075 at maturity. Rolling this over twice in the year could potentially generate $4,150 total, slightly outperforming the 12-month option if rates remain steady.

For long-term investors, a 24-month term at 3.80% generates $7,600 total over two years, but comes with the trade-off of locked-in funds.

Move Bank – Competitive 6-Month Rate

Term deposits are a secure way to grow savings, and MOVE Bank — a customer-owned bank in Australia — has built a reputation for offering some of the most competitive short- to medium-term deposit rates. 

As an authorised deposit-taking institution (ADI), MOVE Bank is backed by the Australian Government’s Financial Claims Scheme, which protects deposits up to $250,000 per person per ADI. This makes it a safe option for individuals with larger balances, such as a $100,000 deposit.

As of 2025, MOVE Bank is advertising 4.30% p.a. for 3-month terms, 4.35% p.a. for 6-month terms, and 4.15% p.a. for 12-month terms. These short-term offerings are higher than many of the rates offered by the big four banks, making MOVE Bank a standout choice for savers looking for flexibility and yield.

Why Consider MOVE Bank?

• High short-term rates: 6-month term at ~4.35% p.a. is among the most competitive in Australia.
  
• Flexible terms: Choice between 3, 6, and 12 months depending on liquidity needs.
  
• Deposit protection: Up to $250,000 per person guaranteed under FCS.
  
• Accessible entry: Minimum deposit starts at around $5,000, making it open to a wide range of investors.

$100,000 Term Deposit Returns

Real-World Example

If you deposit $100,000 for 6 months at 4.35%, you’ll earn about $2,175. Rolling it over twice at the same rate in a year could deliver $4,350 annually, which slightly outperforms the 12-month term at 4.15% ($4,150).

Similarly, a 3-month investment at 4.30% yields about $1,075, providing flexibility for those who may need earlier access to funds.

Arab Bank Australia – Mid-Tier Leader

Arab Bank Australia has established itself as a reliable banking option for Australians seeking both short- and long-term fixed returns. 

As an authorised deposit-taking institution (ADI), it offers the safety of the Australian Government Financial Claims Scheme (FCS), which protects deposits up to $250,000 per depositor per bank.

In 2025, Arab Bank Australia is offering competitive short-term term deposit rates, with 3 and 6-month terms at approximately 4.35% p.a.. 

While longer-term rates may vary, their short-term products rank among the strongest in the market compared to the Big Four banks. For an investor with $100,000, these deposits can deliver predictable income.

Why Arab Bank Australia Stands Out

• Attractive short-term returns: ~4.35% p.a. on 3- to 6-month deposits.
  
• Low entry requirement: Minimum deposits often start at accessible amounts.
  
• Deposit protection: Government-backed guarantee up to $250,000.
  
• Flexible term lengths: Options from 1 month to 5 years.
  

$100,000 Term Deposit Returns

Real-World Example

If you deposit $100,000 for 6 months at 4.35% p.a., you would receive approximately $2,175 on maturity. 

Rolling over the same deposit twice in a year at the same rate could generate around $4,350 annually, outperforming many 12-month term deposit products offered by major banks.

By contrast, a Big Four bank at ~3.70% p.a. on a 12-month deposit would yield only $3,700 — nearly $650 less than Arab Bank’s short-term strategy.

Bank of Sydney – Balanced Option

The Bank of Sydney provides term deposit accounts designed for Australians seeking certainty and guaranteed returns. As an authorised deposit-taking institution, it is protected under the Financial Claims Scheme (FCS), which safeguards deposits of up to $250,000 per person per bank.

As of 2025, the Bank of Sydney’s headline offers include 6-month deposits at 4.00% p.a. and 12-month deposits at 4.15% p.a., placing it among the more competitive mid-tier banks for term deposits. For larger sums such as $100,000, these returns are meaningful and predictable.

Why Choose Bank of Sydney?

• Competitive rates: ~4.15% p.a. for 12 months, higher than many big four banks.
  
• Short and medium terms available: Options from 1 month to 5 years.
  
• Accessible entry point: Minimum deposits often start from $1,000.
  
• Government-backed safety: Up to $250,000 protected under FCS.
  
• Flexible payments: Interest payable monthly, annually, or at maturity depending on product.
  

$100,000 Term Deposit Returns

Real-World Example

If you invest $100,000 for 12 months at 4.15% p.a., you’ll receive $4,150 in interest at maturity. Alternatively, a 6-month term at 4.00% yields $2,000, and rolling it over twice at the same rate could deliver a full-year equivalent of $4,000. 

By comparison, a major bank 12-month term deposit at ~3.70% p.a. would yield only $3,700, highlighting Bank of Sydney’s competitive edge.

ING Australia – Longer-Term Focus

ING Australia is one of the country’s leading digital banks, offering competitive interest rates on savings products, including term deposits. With flexible terms ranging from 3 months to 2 years, ING caters to investors looking for short- to medium-term certainty. 

As an authorised deposit-taking institution (ADI), ING deposits are covered by the Australian Government Financial Claims Scheme (FCS), protecting up to $250,000 per depositor per bank.

As of 2025, ING is offering attractive short-term rates of around 4.15% for 3 months, 4.35% for 6 months, and 4.20% for 12 months, making it a strong contender for investors with $100,000 to deposit.

Why ING Term Deposits Stand Out

• Strong short-term returns: Rates above 4.00% p.a. across 3–12 month terms.
  
• Low entry point: Minimum deposit requirements around $10,000.
  
• Digital convenience: Entire process managed online.
  
• Government protection: Deposits guaranteed up to $250,000 under FCS.
  
• Certainty of returns: Fixed rates for the selected term.
  

$100,000 Term Deposit Returns with ING

Real-World Example

If you invest $100,000 for 6 months at 4.35% p.a., you will earn around $2,175 at maturity. Rolling this over twice at the same rate would generate about $4,350 annually, which is slightly higher than a 12-month lock-in at $4,200. 

On the other hand, a 3-month deposit at 4.15% provides flexibility, yielding about $1,037.50, useful for investors who prefer quick access to their funds.

Rabobank Australia – Global Specialist

Rabobank Australia, part of the global Rabobank Group, is well known for its agricultural banking focus and strong reputation in rural communities. Alongside business lending, it also offers personal savings products such as term deposits, which provide fixed, predictable returns for investors. 

As an authorised deposit-taking institution (ADI), all eligible deposits up to $250,000 per person are protected under the Financial Claims Scheme (FCS), adding peace of mind for savers.

As of 2025, Rabobank is offering competitive long-term rates, with 12-month deposits at ~3.95% p.a., 4-year deposits at ~4.25% p.a., and 5-year deposits at ~4.40% p.a. For a deposit of $100,000, these rates translate into strong and stable returns.

Why Choose Rabobank Term Deposits?

• Competitive long-term returns: Higher yields for 4–5 year deposits compared to short-term offers.
  
• Low entry requirement: Minimum deposits from $1,000.
  
• Safety net: Protected under the government’s Financial Claims Scheme.
  
• Flexibility: Wide choice of terms from 1 month to 5 years.
  
• Trusted institution: Backed by a global cooperative bank with over a century of history.
  

$100,000 Term Deposit Returns

Real-World Example

If you invest $100,000 for 5 years at 4.40% p.a., you would earn about $4,400 per year, adding up to $22,000 over the full term. 

By comparison, leaving the same amount in a 12-month deposit at 3.95% would earn only $3,950 in that year — nearly $450 less annually. This highlights the benefit of committing to a longer-term deposit if you don’t need liquidity.

Big Four Banks – Stability & Safety

The Big Four banks in Australia — Commonwealth Bank of Australia (CBA), Westpac Banking Corporation, Australia and New Zealand Banking Group (ANZ), and National Australia Bank (NAB) — remain the most popular institutions for deposits. 

While they are often seen as the safest choice due to their size, reputation, and government backing, their term deposit rates are generally lower than those offered by smaller challenger banks.

As of 2025, the Big Four advertise 12-month term deposit rates of around 3.65% – 3.80% p.a., with shorter terms like 6 months closer to ~3.00% p.a. This positions them below competitors such as Judo Bank or Rabobank, which are paying over 4.30% for similar terms.

Why Investors Choose the Big Four

• Safety and trust: Large customer base and long track record of stability.
  
• Government protection: Deposits up to $250,000 per person per ADI are insured under the Financial Claims Scheme (FCS).
  
• Convenience: Easy integration with everyday banking accounts and services.
  
• Nationwide access: Extensive branch and ATM networks.
  

$100,000 Term Deposit Returns

Real-World Example

If you deposit $100,000 for 12 months at 3.70% p.a., you’ll earn about $3,700 before tax. By comparison, choosing a 6-month term at 3.00% p.a. earns $1,500 over half a year. 

Rolling that 6-month product twice in a year would give a total of $3,000, which is still less than the 12-month option.

Meanwhile, smaller competitors like Judo Bank at ~4.75% p.a. would deliver $4,750 on the same $100,000 deposit — about $1,050 more than the Big Four.

Conclusion

Challenger banks such as Judo, Unity, and Rabobank currently lead the Australian term deposit market with interest rates exceeding 4.5% p.a., offering investors higher returns than many traditional institutions. 

In contrast, the Big Four banks remain highly stable and trusted but typically deliver less competitive rates around 3.6–3.8% p.a.. 

Choosing between them requires balancing yield against familiarity and convenience. Investors should carefully align their chosen term length with liquidity needs to avoid being locked in unnecessarily. 

Finally, always compare conditions, fees, and interest payment structures, and confirm that rates are up-to-date before investing.

Frequently Asked Questions

Which bank has the highest term deposit rate in Australia right now?

As of 2025, the banks offering the most competitive term deposit rates are the challenger banks, led by Judo Bank with around 4.75% p.a. for 12 months, closely followed by Unity Bank at about 4.60% p.a.. 

These smaller, member-focused institutions often outperform the Big Four banks (Commonwealth, NAB, Westpac, and ANZ), which typically offer 3.6%–3.8% p.a. for similar terms. 

Rates shift frequently depending on the Reserve Bank of Australia’s cash rate and funding conditions. Savers should always confirm the latest rates on bank websites or comparison platforms before locking in their deposit.

Are term deposits in Australia safe for amounts over $100,000?

Yes, term deposits are one of the safest investments in Australia, thanks to the Financial Claims Scheme (FCS), which guarantees up to $250,000 per person, per bank. 

For example, if you invest $100,000 in one bank, the entire amount is protected. If you deposit $300,000 with the same bank, only $250,000 is covered, leaving $50,000 uninsured. 

To maximise safety, large investors often spread their money across multiple banks to keep each deposit under the FCS cap. 

This protection, combined with fixed returns, makes term deposits highly attractive for conservative investors and retirees seeking security.

Is it better to choose short-term or long-term term deposits?

The decision between short- and long-term deposits depends on your financial goals. 

Short-term deposits (3–6 months) provide flexibility and currently offer some of the best advertised rates, such as 4.35% p.a. at MOVE Bank for 6 months. They are ideal if you think interest rates may rise, as you can reinvest sooner. 

Long-term deposits (2–5 years), like Rabobank’s 4.40% p.a. for 5 years, suit investors who want stable returns over a longer horizon without worrying about future rate changes. 

Ultimately, aligning the term with your liquidity needs and market outlook is the key.

How much interest can I earn with $100,000 in a term deposit?

Your interest earnings depend on the bank and term length. At a Big Four average of 3.70% p.a., a $100,000 12-month term deposit would yield about $3,700. 

At Judo Bank’s current top rate of 4.75% p.a., the same $100,000 would return $4,750, an extra $1,050. For long-term savings, Rabobank’s 5-year term at 4.40% p.a. would pay around $22,000 in total over the five years. 

These figures are before tax and assume simple interest. If compounding applies (interest reinvested), returns would be slightly higher. Comparing across banks shows how much value higher rates add.

Can I withdraw money from a term deposit early?

Yes, but early withdrawals come with penalties. Most banks require 31 days’ notice and will reduce the interest rate significantly, sometimes paying only a fraction of the advertised rate. 

For example, withdrawing halfway through a 12-month deposit could mean losing 40–80% of accrued interest, depending on the bank’s policy. This makes it important to choose a term that matches your liquidity needs. If you may need access sooner, consider shorter deposits (3–6 months) or a laddering strategy — splitting $100,000 across multiple deposits maturing at different times. This balances flexibility with steady returns.