What is a term deposit

A term deposit is an investment held in a financial institution for a fixed period of time with a fixed interest rate. By investing in a term deposit, you'll have the certainty and security of knowing how long your money will be invested for and how much you'll receive back at the end of the investment period.

When your term deposit matures (reaches the end of its term), your initial investment amount plus any interest earned is credited to your Self Invest transaction account.

Benefits of term deposits

  • Fixed rate of return
    A term deposit provides peace of mind as you will know exactly how much money you'll receive at the end of your chosen term.
  • Low risk
    As the interest rate and return are fixed and there is no chance of a monetary loss, term deposits are considered a low risk investment.
  • Control and choice
    You have the option to choose an investment term ranging from 30 days to 365 days with competitive term deposit interest rates from leading Australian banks.

Term deposit rates

Provider 30 days 90 days 180 days 365 days
National Australia Bank 2.55% p.a. 4.20% p.a. 4.30% p.a. 4.35% p.a.
Bank of Queensland 3.25% p.a. 4.00% p.a. 4.25% p.a. 4.50% p.a.

Effective from Thursday 30 March 2023 to Thursday 06 April 2023. Rates are updated each Friday.

Figures above are for each year (per annum).

Please check the target market determination for Bank of Queensland and National Australia Bank before choosing their product in Self Invest.

Risks of term deposits

While term deposits can provide certainty and security over the long term, the amount you earn from term deposits tends to be lower than other investment options such as shares. There's no growth in the capital you invest in a term deposit meaning it may not keep pace with inflation. When considering term deposits, think about your long-term investment goals and how you could use a term deposit to complement a diversified portfolio.

It's also important to keep in mind that term deposits generally cannot be broken, which means you can't access the money you invest in a term deposit, or the interest you earn from it, until it matures.

More about term deposits

  • You can invest in a term deposit for more than one year. When your term deposit has reached maturity, you will receive an email with the option for your term deposit to roll over automatically into a new term. You can choose to reinvest the original amount you invested or the amount available when it matures (original amount plus interest).
  • You can invest a minimum of $5,000 in a single term deposit. The maximum is $5 million.
  • Orders that are placed for a term deposit before the cut off time (AEST 3.59pm) can be processed as early as the next working day.
  • While term deposits generally can't be broken, you may be granted access to withdraw or transfer your super due to special circumstances.

For more information about term deposits and our other Self Invest options, refer to the Investment Choice Guide (pdf).