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Long term deposits paying 3.40%, short term deposits 2.85%

Long term deposits paying 3.40%, short term deposits 2.85%

Five-year term deposits are currently paying up to 55 basis points more in interest than six-month term deposits, a new analysis has found.

Rabobank and RaboDirect are offering 3.40 per cent for five-year term deposits (see table below).

That would turn a $5,000 investment into $5,850 at the end of the five-year term.

Greater Bank is offering 3.10 per cent, which would turn $5,000 into $5,775.

Some other lenders are paying 3.00 per cent for five-year term deposits: Australian Unity, G&C Mutual Bank, Heritage Bank, IMB Bank, ME Bank, People’s Choice Credit Union and RACQ Bank.

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
Heritage Bank3.00%$5,750
IMB Bank3.00%$5,750
ME Bank3.00%$5,750
People’s Choice Credit Union3.00%$5,750
RACQ Bank3.00%$5,750

If you want to invest $5,000 for just six months, even high-interest term deposits have a ‘2’ in front of them (see table below).

Arab Bank Australia and Bank of Sydney are paying 2.85 per cent for six-month term deposits, which would turn a $5,000 investment into a $5,071.25 payout.

ME Bank is paying 2.80 per cent, which produces a final return of $5,070.

Several lenders are offering six-month term deposit interest rates of 2.75 per cent, including

Rural Bank One, UBank and Firstmac.

MyState Bank is close behind, with an interest rate of 2.70 per cent.

Six-month term deposits

LenderInterest rateFinal total
Arab Bank Australia2.85%$5,071.25
Bank of Sydney2.85%$5,071.25
ME Bank2.80%$5,070
Rural Bank One2.75%$5,068.75
UBank2.75%$5,068.75
Firstmac2.75%$5,068.75
MyState Bank2.70%$5,067.50

Please note that the term deposit with the highest interest rate may not be the best term deposit for every borrower.

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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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