Finty

Compare 3 month term deposits

Choose your amount and term to see the interest 145 3 month term deposits would pay you, so you can lock in a better return before you commit.

A 3-month term deposit locks your rate in for about 90 days. It suits money you'll need soon, or a short wait to see where rates go.

Written byDavid Boyd

What could you earn?

Enter how much you want to deposit and for how long, and we'll show the rate every deposit below pays on that amount and term, and the interest you'd earn.

139 term deposits

Showing 20 of 139

Interest earned is an estimate before tax, at the rate shown, for the whole term, as simple interest. Rates are fixed for the term and can change for new deposits at any time.

3 month term deposits at a glance

Worked out from the 145 deposits from 77 banks we compare on this page.

Typical 3-month rate

4.30%

Across the 145 deposits with this term. Half pay between 3.50% and 4.95%.

Typical 6-month rate

5.00%

Across 103 deposits with a 6-month term.

Typical minimum deposit

$1,000

72 of 134 start at $1,000 or less.

Interest paid monthly

53 of 145

deposits can pay interest each month.

How 3-month rates are spreadNumber of deposits in each band. The most common is 5–5.5%.

The short version

  • A 3 month term deposit locks your rate for about 90 days.
  • It suits money you'll need soon, or a short wait to see where rates go.
  • Short terms sometimes pay less than savings accounts, so compare both.

How term deposits work

You lock an amount away for a fixed term at a fixed rate. You know exactly what you'll earn, whatever happens to interest rates, but you can't add money during the term.

Most banks need 31 days' notice to release money early and reduce the interest they pay you, so only lock away money you won't need.

Pros

  • Your rate is locked, so a cut doesn't touch you.
  • No fees and no conditions to meet.
  • Your money is free again soon, so you can move it if rates rise.

Cons

  • Your money is locked in, with 31 days' notice and an interest cut to get it out early.
  • Short terms often pay less than longer ones, or than a good savings account.
  • You'll need to reinvest every three months, maybe at a lower rate.

Alternatives

  • A high interest savings account, which pays a variable rate but lets you take money out any time.
  • A 6 or 12 month term deposit, which often pays more.

How to open one

You can open a 3 month term deposit online with most banks in a few minutes.

  • Have your ID and tax file number ready. Without a TFN, the bank must hold back tax at the top rate.
  • Check the minimum. Many banks need at least $1,000 or $5,000, and some pay more on bigger amounts.
  • Choose how interest is paid. At the end of the term usually pays the highest rate; monthly or yearly payments can pay a little less.
  • Decide what happens at maturity. Set it to pay into your account, or you may be rolled into a new term at a lower rate.

What to check

  • The rate for your exact amount and term. Rates often differ for larger deposits.
  • How interest is paid: at the end, or monthly or yearly. Monthly interest often comes at a slightly lower rate.
  • What happens at maturity. Many deposits roll over automatically at the bank's rate on the day, which may be lower, unless you give instructions.
  • That the bank is an Australian authorised deposit-taking institution. Deposits up to $250,000 per person per bank are covered by the government's Financial Claims Scheme.

Questions people ask

Can I get my money out early?

Usually, but you must give 31 days' notice, and the bank cuts the interest you earn, often by a large share. Only lock away money you won't need.

What happens when my term deposit ends?

The bank writes to you before it matures. If you don't act, many roll the money into a new term at whatever rate they offer then, which may be low. You usually have a grace period of a week or two to change it.

Are term deposits safe?

Term deposits with an Australian bank, building society or credit union are covered by the government's Financial Claims Scheme, up to $250,000 per person per bank.