1 to 3-Year Term Deposits

A 1 to 3 year term deposit fixes the rate for the whole term, so the return is known in advance whichever way market rates move. Compare rates from 5.20% with Rabobank's Online Term Deposit, and choose how often interest is paid, since that can change the rate on offer.

Rates checked against every provider’s own published data on 19 Oct 2026

Last updated 19 Oct 2026 · Who wrote this

Written by Joshua PevyReviewed by Jordan PearceLast updated 19 Oct 2026How We Rank This PageEditorial StandardsOur Writers

Comparing 4 products

Depositing $10,000 over 2 years at the highest shown:

Top rate: 5.20% p.a.
Interest earned: $1,030
Balance after 2 years: $11,030

Estimate only, based on Rabobank’s highest advertised rate. Each product is priced at its own rate for this term and its own interest-payment schedule, so a deposit paying at maturity earns simple interest.

		Term length	Interest paid	Actions
Rabobank	Max rate5.20%	Term length15 mo–3 yr	Interest paidAt maturity	Compare Rabobank Online Term Deposit	Competitive fixed interest with the choice of 1 month to 5 year terms.
Southern Cross Credit Union	Max rate4.70%	Term length18 mo–2 yr	Interest paidMonthly	Compare Southern Cross Credit Union Term Deposit
Australian Military Bank	Max rate3.55%	Term length13 mo–3 yr	Interest paidAt maturity	Compare Australian Military Bank Investment Plus	Make a solid return on your investment with interest paid on maturity or annually if your term is greater than 12 months.
MyState Bank	Max rate0.00%	Term length2 yr–3 yr	Interest paidAt maturity	Compare MyState Bank AMM - Regular Term Deposit	Available only through Australian Money Market.

Rates and fees are sourced from each provider’s CDR Product Reference Data where the provider publishes it.

Important information

About this table: using the data available to us, we have tried to show products that match this table’s title. This table does not compare all products, and there may be products with a higher rate in the market that are not shown here. Do your own research to find a product that suits your needs and financial goals. See how we choose products for tables like this.

Find out moreShow less

Rates, fees and charges are subject to change without notice. Before acting on any information shown here, you should confirm the rates, fees, charges and product information with the provider. For clarity, where we have used the terms “lowest” or “best”, these relate solely to the rates of interest offered by the provider and not to any other factor. The application of these terms to a particular product is subject to change without notice if the provider changes their rates.

This table does not compare every feature that may be relevant to you. Products are selected for relevance to the table and to the filters applied. They are not suggestions or recommendations, and the order they appear in is not a ranking of suitability. Changing the filters will surface further relevant products. See how we sort and rank products.

Some providers pay us to promote a product or for a click through to their site. Any paid listing is marked “Sponsored Placement” wherever it appears. Payment never determines which products we show: we consider all relevant products in the market against the filters applied, and payment never changes the figures we display. See how we make money and our advertiser disclosure.

This information is general in nature. It does not take into account your objectives, financial situation or needs, and it is not a recommendation to apply for or hold any particular product. You should read the provider’s Key Facts Sheet, Target Market Determination and terms and conditions before deciding. CompareThat compares products. We do not arrange, approve or process applications.

What is a long-term deposit?

A long-term deposit locks your money away for one to three years (sometimes longer) at a fixed rate. It’s for savers who want to secure a rate for an extended period and have funds they’re confident they won’t need in the meantime.

The case for locking in for years

A longer term locks in today’s rate, which is valuable if you expect rates to fall, because you keep earning the higher rate while new deposits drop. It also removes decisions for the length of the term. The flip side is commitment: the money is locked away for the term.

The trade-offs

If rates rise during a multi-year term, you’re stuck on the older rate, and breaking early usually means notice and a meaningful interest reduction. How interest is paid matters too, since annual and at-maturity payments compound differently over several years. Deposits are protected by the Financial Claims Scheme up to $250,000 per account-holder, per institution.

How long-term deposits compare

The rate at each term, the interest frequency and the early-withdrawal terms are the figures that separate them, and they matter more the longer the commitment. Term deposits can be compared side by side, alongside 6 to 12-month options and the term deposits hub.

Expert view

“Locking in for years is really a view on where rates are heading. If they fall, a longer term banks today’s rate for longer. The early-withdrawal terms matter far more here than on a short deposit, because a break on a long term costs more.”

Jordan Pearce

Senior finance writer, CompareThat

Glossary

The key terms you’ll meet when comparing these products, reading product disclosures or talking to a provider.

Term	What it means
Early withdrawal	Accessing your funds before maturity, which usually requires notice and reduces the interest you earn.
Financial Claims Scheme (FCS)	A government guarantee protecting deposits up to $250,000 per account-holder per authorised deposit-taking institution.
Fixed rate	An interest rate locked for the full term, unaffected by market movements during that time.
Grace period	A short window after maturity (often around seven days) to decide what to do with the funds without penalty.
Interest frequency	How often interest is paid, for example monthly, annually, or only at maturity.
Maturity	The date a term deposit ends and your funds plus interest become available.
Rollover	Automatically reinvesting a matured term deposit into a new term, often at the current advertised rate.
Term deposit	A deposit locked away for a fixed term at a fixed interest rate.

Common questions

What does locking in for one to three years trade off?

A longer term pays off when rates fall and the money is not needed for the period. When rates rise or access is needed, a shorter term offers more flexibility.

What if rates rise after I lock in?

You stay on the fixed rate you agreed, so you won’t benefit from rises during the term. That certainty is the point of a longer term, and it cuts both ways.

How does interest work over several years?

You can usually choose annual or at-maturity payments, among others. How interest compounds over a multi-year term can make a real difference.

Can I break a long-term deposit early?

Generally only with 31 days’ notice and a reduction in interest. The reduction usually depends on how much of the term has passed, and on a long term it can cost more in dollars. That is why long terms are commonly used for money that can be left untouched.

Are long-term deposits guaranteed?

Yes. Deposits with an Australian authorised deposit-taking institution are protected by the Financial Claims Scheme up to $250,000 per account-holder, per institution.

The Numbers Behind This Market

What this market is paying or charging on average right now, and the official figures behind it.

Why you can trust CompareThat

We are not a lender, broker or bank. Product data comes straight from each provider’s own Consumer Data Right feed (Australia’s official open banking system) and is refreshed daily, so what you see reflects published rates and fees, not a sales pitch.

Not a credit provider: we do not lend, arrange loans or take applications.
Sourced from each provider’s CDR Product Reference Data, refreshed daily.
Payment can change where a product appears, never which products we show.
General advice only, not personal advice. CompareThat compares; it does not recommend.

Rates and fees are sourced from each provider’s CDR Product Reference Data as of the date shown. This page is general advice only, not personal advice. CompareThat is not a bank. Payment can change where a product appears, never which products we show.