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$5,000 term deposits paying up to 3.40% interest

$5,000 term deposits paying up to 3.40% interest

Small banks and credit unions are offering the highest term deposit rates in Australia right now.

For investors who want to lock away $5,000, Arab Bank Australia is paying 3.00 per cent for one-year term deposits. That results in a total payout of $5,150 after 12 months (see table below).

Bank Australia, Bank of Sydney and Rural Bank One have one-year term deposit interest rates of 2.85 per cent.

Investors who want to take out a $5,000 two-year term deposit can receive 2.95 per cent from Bank Australia, for a final payout of $5,295.

Defence Bank, Teachers Mutual Bank and UniBank are close behind, with interest rates of 2.90 per cent.

A range of institutions are paying 3.00 per cent for three-year term deposits, including Australian Unity, Bank Australia, Heritage Bank, Teachers Mutual Bank and The Mutual.

That will turn an investment of $5,000 into $5,450 at the end of the three-year term deposit.

When it comes to four-year term deposits, Rabobank and RaboDirect are both paying interest rates of 3.20 per cent, resulting in a final payout of $5,640.

Australian Unity, Heritage Bank and ME Bank are offering 3.00 per cent interest on four-year term deposits.

Investors who want a five-year term deposit can receive 3.40 per cent interest from Rabobank and RaboDirect, for a final payout of $5,850.

Greater Bank is offering 3.10 per cent for five-year term deposits, while Australian Unity and G&C Mutual Bank are paying 3.00 per cent interest.

One-year term deposits

LenderInterest rateFinal total
Arab Bank Australia3.00%$5,150
Bank Australia2.85%$5,142.50
Bank of Sydney2.85%$5,142.50
Rural Bank One2.85%$5,142.50
ME Bank2.80%$5,140

Two-year term deposits

LenderInterest rateFinal total
Bank Australia2.95%$5,295
Defence Bank2.90%$5,290
Teachers Mutual Bank2.90%$5,290
UniBank2.90%$5,290
ME Bank2.85%$5,285

Three-year term deposits

LenderInterest rateFinal total
Australian Unity3.00%$5,450
Bank Australia3.00%$5,450
Heritage Bank3.00%$5,450
Teachers Mutual Bank3.00%$5,450
The Mutual3.00%$5,450

Four-year term deposits

LenderInterest rateFinal total
Rabobank3.20%$5,640
RaboDirect3.20%$5,640
Australian Unity3.00%$5,600
Heritage Bank3.00%$5,600
ME Bank3.00%$5,600

Five-year term deposits

LenderInterest rateFinal total
Rabobank3.40%$5,850
RaboDirect3.40%$5,850
Greater Bank3.10%$5,775
Australian Unity3.00%$5,750
G&C Mutual Bank3.00%$5,750

Update (April 8, 2019): Since publishing this story, three months have passed and the rates have changed. As such, RateCity has published revised and refreshed term deposit rates, providing more up-to-date coverage.

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This article was reviewed by Head of Content Leigh Stark before it was published as part of RateCity's Fact Check process.

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