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.
Term deposit rates
| Provider |
30 days |
90 days |
180 days |
365 days |
|
Bank of Queensland
|
3.10% p.a.
|
4.65% p.a.
|
4.95% p.a.
|
5.00% p.a.
|
|
National Australia Bank
|
2.95% p.a.
|
4.95% p.a.
|
5.10% p.a.
|
5.25% p.a.
|
Effective from
Thursday 30 November 2023
to
Thursday 07 December 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.
You can find out more in the Self Invest Guide (pdf).