Business term deposit rates

What is a business term deposit?

A business term deposit works in the same way as a standrad term deposit - it's just for business customers instead of personal use. A term deposit is a type of bank account that allows you to earn a fixed rate of interest on your money for a set period of time. For example, you might invest $10,000 to earn interest at a rate of 4% p.a. for a period of 12 months. Once 1 year has passed, you will have access to your initial deposit again plus the interest earned.

Best business term deposit rates April 2025

Here are some of the best business term deposit rates this month.

6 month business term deposits

• 4.45% with AMP
• 4.8% with Judo Bank
• 4.7% with Bank Australia

12 month business term deposits

• 5% with People's Choice Credit Union
• 4.3% with AMP
• 4.5% with Judo Bank

2 year business term deposits

• 3.95% with AMP
• 4.3% with Judo Bank
• 4% with Hume Bank

Business term deposit versus business savings account

Whether you opt for a business term deposit or business savings account will depend on how hands-on you want to be, and how much access you want to the account. A term deposit is locked away for the life of the term (you can choose a length between 1 month and 5 years) and there are no ongoing deposit requirements to meet during this time.

A business savings account isn't locked, so you can access the money at short notice whenever you need. However, it's not always a set-and-forget option like a term deposit, as savings accounts often have monthly conditions to meet.

Benefits of a business term deposit

Consistent returns

When you put money in a term deposit, you know what you are getting upfront. A fixed interest rate and a set investment period means you know exactly how much interest your term deposit will earn and can therefore include that amount in future financial calculations.

Your money is guaranteed

Savings balances of up to $250,000 are guaranteed by the Australian government, so there is virtually no risk of losing your money.

Boost your business savings

Business term deposits offer a simple way to make your money work harder for you, allowing you to safely improve the overall financial standing of your business.

High interest rate

Term deposits offer a higher interest rate than many other types of bank accounts, including many online savings accounts. And because the interest rate is fixed, you’ll be protected against any interest rate drops that may occur.

How to find the best business term deposit rates

In order to maximise the savings for your business, it’s important to shop around and find the best business term deposit rates. However, there are several factors that can impact the interest rate on offer on different term deposit accounts, including:

The term

The interest rate that applies to term deposits varies depending on the investment term you choose, with terms ranging from 30 days up to 5 years. Usually you'll find a higher rate on a longer term.

The amount you deposit

Different interest rates also apply based on the amount you invest. For example, your bank may offer higher interest rates if you deposit an amount greater than $25,000, as opposed to if you park a smaller sum of maybe $5,000 in a term deposit.

Bonus interest

To encourage you to remain a loyal customer, when a term deposit matures, some banks may offer you a “loyalty bonus” in the form of a bonus interest rate if you rollover your funds into a new term deposit.

How interest is paid

You can choose when you want to get paid your interest, usually as frequently as each month or simply in one lump sum at the end of your term (at maturity). Often by choosing to receive the interest at maturity you'll get a slightly better rate.

The bank you choose

Just like with home loans and savings accounts, the specific interest rates on offer vary depending on the bank, building society or credit union you choose.

Taking all these factors into account, it’s clear that the most effective way to find the best business term deposit rates is to compare a range of options. This will help you find the highest interest rate for your desired investment amount and term.

Our expert says: Check for special offers

"The Big Four banks don't often offer the best business term deposit rates in the market on a day-to-day basis. However, something that they often do have is special offer term deposit rates. These include higher rates on particular term lengths for a limited time, usually if you apply online, and these rates are often among the best in the market.

So before you settle on a business term deposit, check if the Big Four have any special offers running on a different term length."

Alison Banney

Editorial Manager, Money

Example: Finding the best business term deposit rate

Small differences in the interest rate offered may not seem to be too significant, but depending on the size of your investment the difference can rrally add up.

Let's pretend your business had $10,000 to invest in a term deposit, and you're considering two different options with slightly different interest rates. As the table below shows, by choosing the higher interest rate of Account 2, you can earn an extra $1,827.22 in interest over 5 years.

* This is a fictional, but realistic, example.

Frequently Asked Questions

• Can a business have a term deposit?

  Yes, businesses can open term deposit accounts to earn interest on their money. These accounts offer fixed interest rates for a specified term but it's important to note you can't access your money until maturity, without penalties or fees being applied.

• Which bank has the best business rates?

  The best business term deposit rates vary depending on the term length and amount deposited. Currently, Judo Bank, AMP and Bank Australia all offer competitive rates for 6 or 12 month business term deposits.

• Does AMP do business term deposits?

  Yes, AMP offers business term deposits across a range of terms with quite competitive interest rates.

• What is a corporate term deposit?

  A corporate term deposit is a fixed-term account offered specifically for corporations looking to earn interest on funds they aren't currently deploying for other business purposes.

• What is a business fixed term deposit?

  A business fixed term deposit is just another way of saying a business term deposit. Your business deposits funds for a set period or term and the money earns interest at a fixed interest rate. This rate doesn't change during the agreed term.

• What are the downsides of a term deposit for businesses?

  The major disadvantage of investing money in a business term deposit is that the funds are locked away until the deposit matures. While you may be able to access your money before the term ends, you can wave goodbye to any interest you stood to earn and could also have to pay a sizeable fee. This may impact your business cash flow.

To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten and reviewed by Justine Mclean, a member of Finder's Editorial Review Board.

Written by

Sarah Megginson

Personal finance expert + media spokesperson

With over 20 years of experience in property, finance and investment journalism, Sarah is a trusted expert whose insights regularly appear across television, radio, and print media, including Sunrise, ABC News, and Yahoo! Finance. She has previously served as managing editor for Your Investment Property and Australian Broker, and her expert advice has been shared over 2,500 times in 2023-2024 alone. Sarah holds a Bachelor’s degree in Communications and a Tier 1 Generic Knowledge certification, which complies with ASIC standards. See full bio

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