Finty

Compare term deposits for seniors and pensioners

Choose your amount and term to see the interest 25 term deposits for seniors and pensioners would pay you, so you can lock in a better return before you commit.

Term deposits that only older Australians or people on a pension can open, by the bank's own eligibility rules. Some pay interest monthly to help with living costs.

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.

11 term deposits

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.

Term deposits for seniors and pensioners at a glance

Worked out from the 25 deposits from 8 banks we compare on this page.

Typical 1-year rate

5.25%

Across the 11 deposits with this term. Half pay between 4.47% and 5.30%.

Typical 6-month rate

5.00%

Across 7 deposits with a 6-month term.

Typical minimum deposit

$5,000

2 of 20 start at $1,000 or less.

Interest paid monthly

18 of 25

deposits can pay interest each month.

How 1-year rates are spreadNumber of deposits in each band. The most common is 5–6%.

The short version

  • Some banks have term deposits only for older Australians or pensioners.
  • Some pay interest monthly to help with living costs.
  • Centrelink counts deemed income, not the interest you earn.

Term deposits for older Australians

Some banks and credit unions have term deposits only for people over a set age, often 50 or 55, or for people on the Age Pension or another pension. Some pay a higher rate or pay interest monthly to help with living costs.

Apart from who can open one, they work like any term deposit: your rate is fixed for the term, and getting money out early usually takes notice and costs some interest.

Interest and the Age Pension

Centrelink counts deemed income on your financial assets at set rates, not the interest you actually earn. So a higher rate doesn't cut your pension, and earning more than the deeming rate leaves you better off.

Pros

  • A fixed rate, so a cut doesn't touch you.
  • Monthly interest options for a regular income.
  • Covered by the Financial Claims Scheme up to $250,000.

Cons

  • Only open to people over a set age, or on a pension.
  • Money is locked in, with notice and an interest cut to get it out early.
  • May pay no more than term deposits anyone can open.

Alternatives

  • Term deposits anyone can open, which may pay more.
  • A savings account for seniors, for money you might need.
  • An annuity, for income for life. Talk to a financial adviser first.

How to open one

You can open a term deposit for seniors 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 who can open it. The bank's eligibility terms say who qualifies.
  • Have proof of age or your pension card ready if the bank asks.

What to compare

  • The rate for your amount and term, against term deposits anyone can open.
  • How often interest is paid. Monthly interest gives you an income, often at a slightly lower rate.
  • What happens at maturity, so the money doesn't roll into a lower rate.
  • That the bank is an Australian bank, building society or credit union, so the Financial Claims Scheme covers up to $250,000.

Questions people ask

Does the interest affect my Age Pension?

Centrelink doesn't count the interest you actually earn. It counts deemed income on your savings and term deposits at set rates, whatever your bank pays, so a higher rate leaves you better off.

Can I get my money out of a term deposit early?

Usually, but most banks need 31 days' notice and cut the interest they pay you. Only lock away money you won't need.

Is my money safe?

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.