Best Term Deposit Rates

It really is a wonder that there was a stock market crash here in the mid-1980s. If you look back at the term deposit rates offered at the time, you have to ask yourself why people bothered with risky equities.

Back in 1985 when, ironically, Dire Straits’ Money For Nothing was riding high in the charts, the average six-month term deposit rate was 17.93%. But, on the flip side, average mortgage rates were eye-watering – the floating rate at the time was 17.5%.

However, by June 1995, term deposit rates had fallen close to 10 percentage points, to 8.84%. And hand-in-hand with mortgage rates, they continued their decline. Until mid 2021, when they started to climb back up again.

Source: www.rbnz.govt.nz/statistics

As inflation eases – it’s now sitting at 5.6% – term deposits are looking an increasingly attractive investment option. Especially when you consider that the highest two-year rate in Canstar’s Term Deposit Comparison Tool is now 7.5%.

Our comparison tool evaluates over 470 term deposit rates from 15 providers, and is a great place to research the best rates in the market.

However, for a quick rundown, we’ve put together three easy-to-scan tables featuring the highest rates (as of 04/12/2023) on our database for:

• 6-month term deposits
• 12-month term deposits
• 24-month term deposits

Plus graphs covering all the term deposit rates currently on offer from major lenders.

Note: interest payment frequencies vary. Check Canstar’s comparison tables for full details.

Best term deposit rates: six-month term

(Rates as of 04/12/2023)

The results based on an investment of $50,000 for 6 months.

	6-month term deposit rate
	7.00%
	6.85%
	6.10%
	6.05%
	6.05%
	6.05%
	6.05%
	6.00%
	6.00%
	6.00%
	6.00%
	6.00%
	5.90%

Term deposit best rates: 12-month term

The results based on an investment of $50,000 for 12 months.

	12-month term deposit rate
	7.50%
	7.50%
	6.30%
	6.30%
	6.20%
	6.15%
	6.15%
	6.10%
	6.10%
	6.10%
	6.10%
	6.00%
	6.00%

Term deposit best rates: 24-month term

The results based on an investment of $50,000 for 24 months.

	24-month term deposit rate
	7.50%
	7.35%
	6.10%
	6.10%
	6.00%
	6.00%
	6.00%
	6.00%
	6.00%
	5.90%
	5.90%
	5.90%
	5.80%

To view a wider range of term deposit accounts, use Canstar’s Term Deposit Comparison Tool.

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	• 9 Currencies • Use wherever Mastercard is accepted • Mastercard Priceless Cities benefits	• Free overseas ATM withdrawals • No load/reload fee for bank transfers • No monthly fee

The display order does not reflect any ranking or rating by Canstar. This information is not an endorsement by Canstar of travel money cards or any specific provider. Information correct as of 20/09/23. For full pricing details see individual providers’ websites.

Compare Travel Money Cards

Current Deposit Rates

(Rates as of 01/12/2023)

Term deposits: things to consider

While a high interest rate is important, it isn’t the only factor to consider when looking for a term deposit. Some other factors you might want to keep in mind include:

Fixed time period

Choose your time wisely, because term deposits can be inflexible. For example, if you need to access your money before the end of the term, your bank may charge you a penalty fee and ask you to give them a period of notice.

Interest rates

They tend to vary a lot, depending on the provider and the term. As movements in both directions are possible, it pays to shop around.

Compound interest

Interest can be compounded at different frequencies, such as monthly, semi-annually and annually. The compounding frequency, the number of compounding periods and the interest rate will determine the amount of interest earned on a term deposit investment.

Often, you’ll receive less interest on accounts that pay interest more regularly, for example monthly, due to the added benefits of compound interest.

Deposit size

Check whether there is any minimum amount needed to open a term deposit, and if a higher interest rate is offered for a larger amounts. It may be worthwhile depositing more than you originally considered to achieve a better rate.

Fees and charges

Are there any penalties or fees charged for early withdrawals?

Rolling over

As rates are constantly moving, it’s important to be aware that if you roll over your account, you might be fixing at a lower (or higher) amount. Also be aware that sometime you can earn bonus interest if you agree to roll over your term deposit. So check with your provider to see what options you have, and what terms and conditions apply.

For the full rundown of all the up-to-date term deposit rates on Canstar’s database, just click on the button below.

Compare Term Deposits

About the author of this page

This report was written by Canstar’s Editor, Bruce Pitchers. Bruce has three decades’ experience as a journalist and has worked for major media companies in the UK and Australasia, including ACP, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ. Prior to Canstar, he worked as a freelancer, including for The Australian Financial Review, the NZ Financial Markets Authority, and for real estate companies on both sides of the Tasman.