Australia's four major banks - dubbed the ‘big four’ - offer a variety of term deposits to help you grow your wealth in the long run. Check out current term deposit rates from ANZ, CommBank, NAB and Westpac to see how they stack up to the competition.
Why choose one of the big four banks for a term deposit?
You may opt to choose a big four bank for your term deposit as a means of convenience. If you already have an account with one of the big four banks, one of their term deposits could offer a seamless way to grow your savings. Your bank will already have your details and access to funds needed for the term deposit without having to transfer from one bank to another.
Many Australians opt to bank with the big four given the sense of security they provide over other smaller financial institutions. Plus, big four banks have more physical branches - which some Australians prefer to utilise for their banking needs.
Factors to consider with a term deposit from the big four
If you are tossing up between a term deposit from one of Australia’s big four banks, as with any financial product, there are a number of factors to first consider. These include:
Interest rate
Identify the interest rates on offer from the bank and discover how they differ by term and investment amount. Generally, the longer the term, the higher the interest rate.
Interest payment
Alongside interest rate, it’s important to know when interest is paid on your deposit amount. Depending on the big four bank chosen and the length of time, interest is typically paid either monthly, annually or at the end of the term. This is also known as ‘at maturity’.
Term
Different interest rates are attached to different terms. It’s important to consider whether you would need to access the money in the near future or if you could stash it away for a longer period to achieve a higher interest rate.
Investment amount
Deposits with the big four banks require a minimum deposit of $5,000. This amount differs across banks outside the big four such as Bank Australia requiring a minimum of $500, while Judo requires a minimum of $1,000.
Fees
If you need to withdraw your deposit to meet an expense, a penalty will typically apply in the form of a fee for early withdrawal as well as what’s known as a prepayment interest adjustment. All big four banks will charge an early withdrawal fee if deposits are removed from their allocated term. The prepayment interest adjustment is essentially a reduction in your interest earnings based on how soon into the term the withdrawal is made.
Savings.com.au’s two cents
Taking advantage of a term deposit from one of the big four banks can aid in growing your savings in the long term through the power of interest. While other banks may offer better rates, it’s important to weigh up factors such as convenience and ease of access when looking to open a term deposit. Don’t forget, once your savings are stashed away in a term deposit, they are locked there for a set amount of time. Withdrawing these savings early will often result in having to pay an early withdrawal fee or in some cases forfeit interest.
FAQs
Australia's banking sector is dominated by four major banks collectively known as the 'Big Four' – Commonwealth Bank of Australia (CBA), Westpac, National Australia Bank (NAB), and Australia and New Zealand Banking Group (ANZ).
Which bank has the best term deposit rates in Australia? ›
Highest 3-month term deposit rates
| Interest rate (p.a.) | Min - max deposit |
---|
Great Southern Bank | 4.90% | $5,000 - (no max specified) |
Judo Bank | 4.90% | $1,000 - $1m |
G&C Mutual Bank | 4.85% | $1,000 (no max specified) |
Move Bank | 4.85% | $5,000 (no max specified) |
13 more rowsMay 14, 2024
Which is better, NAB or ANZ? ›
In the last couple of years, NAB and CBA have been performing better than Westpac and ANZ from many perspectives, especially the share price. CBA has tended to outperform its peers and it has in the last five years, sitting on a 50%+ gain as of mid-May 2024. NAB is up 33%, ANZ is up 4.4% and Westpac is down 3%.
Which bank gives 7% interest on savings accounts? ›
As of May 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.
What are the Big 4 Australia? ›
Big 4 salaries and your future. Deloitte Australia, Ernst & Young (EY), PricewaterhouseCoopers (PwC) and KPMG are known as the Big 4 for a reason. They are the some of the most well regarded accountancy and advisory firms in the country, and graduate jobs with them are always highly contested.
What is the Big 4 National bank? ›
The “big four banks” in the United States are JPMorgan Chase, Bank of America, Wells Fargo, and Citibank. These banks are not only the largest in the United States, but also rank among the top banks worldwide by market capitalization, with JPMorgan Chase being the most valuable bank in the world.
Where can I get 5% interest on my money in Australia? ›
Best high-interest savings accounts by base rate
- Freedom Saver (Australian Unity) – 5.20%. ...
- ANZ Save (ANZ Plus) – 4.90%. ...
- Simple Saver Account (Bank of Queensland) – 4.85%. ...
- MoneyMAX Account (Unity Bank) – 4.75%.
- Online Saver Account (Orange Credit Union) – 4.75%. ...
- Savings Account (Macquarie) – 4.75%.
What is Westpac's best term deposit rate? ›
Term Deposit rates and terms
Term | Fixed rate p.a. |
---|
12 - 23 months | 4.25% |
24 - 35 months | 4.00% |
36 - 47 months | 4.00% |
48 - 59 months | 4.00% |
1 more row
What is ANZ term deposit interest rate? ›
ANZ Advance Notice Term Deposit interest rates disclaimer
Terms | Interest at Maturity | Half Yearly Interest |
---|
11 to less than 12 months | 4.10% p.a. | 4.07% p.a. |
12 to less than 24 months disclaimer | | 4.65% p.a. |
24 to less than 36 months disclaimer | | 3.96% p.a. |
36 to less than 48 months disclaimer | | 3.96% p.a. |
12 more rows
Is Westpac a good bank to be with? ›
Westpac Private Bank has been named 'Best Private Bank Australia' for seven years running by PWM's The Banker Global Private Banking Awards.
According to Global Finance, the safest bank in Australia in 2023 was Commonwealth Bank. This list was unchanged from 2022. As you can see, the big four have identical scores, all very strong indicating a very low credit risk.
What is the difference between Westpac and Commonwealth Bank? ›
Commonwealth Bank (CBA) is Australia's largest bank by basically any measurement, while Westpac (WBC) is Australia's second-largest by many measurements. Both have more than $1 trillion in residents' assets on its books; they're the only two banks in Australia to claim this feat, out of a cast of more than 100.
Where can I get 12% interest on my money? ›
Where can I find a 12% interest savings account?
Bank name | Account name | APY |
---|
Khan Bank | 365-day, 18-month and 24-month Ordinary Term Savings Account | 12.3% to 12.8% |
Khan Bank | 12-month, 18-month and 24-month Online Term Deposit Account | 12.4% to 12.9% |
Yield | N/A | Up to 12% |
Crypto.com | Crypto.com Earn | Up to 14.5% |
6 more rowsJun 1, 2023
Where can I get 5% interest on my savings account? ›
Nationally Available High Interest Account Rates from Our Partners
Account Name | APY (Annual Percentage Yield) Accurate as of 5/28/2024 |
---|
Western Alliance Bank High-Yield Savings Premier | 5.36% |
NexBank High Yield Savings Account | 5.26% |
UFB Secure Savings | 5.25% |
CIT Bank Platinum Savings | 5.00% (with $5,000 minimum balance) |
2 more rowsMay 10, 2024
Which bank gives 8% interest? ›
Top 20 Scheduled Banks offering Best FD Rates
Banks | Highest FD rate (% p.a.) | Additional interest rate for senior citizens (% p.a.) |
---|
RBL Bank | 8.00 | 0.50 |
AU Small Finance Bank | 8.00 | 0.50 |
Induslnd Bank | 7.99 | 0.26-0.50 |
IDFC First Bank | 7.90 | 0.50 |
16 more rows
What are the 5 biggest banks in Australia? ›
Top 10 biggest banks by size of deposits held
Institution | Value (billion) |
---|
Commonwealth Bank | $386.92 |
Westpac | $300.04 |
NAB | $201.34 |
ANZ | $170.91 |
6 more rows
What are the Tier 1 banks in Australia? ›
Commonwealth Bank, Westpac, National Australia Bank, and Australia and New Zealand Banking Group (ANZ) are known as Australia's Big Four banks by virtue of their market share and market value.
Which bank is mostly used in Australia? ›
Commonwealth Bank of Australia (CBA)
It is the largest of the banks in Australia and offers a diversified range of financial products and services. It currently provides retail, business, institutional banking, and wealth management products and services to its 16.6 million customers.