8 best business term deposit rates in Australia (2026)
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Note: Rates shown are indicative and based on interest paid at maturity on a deposit of AUD $100,000. Rates are subject to change. Always confirm directly with the provider before applying.
What is a business term deposit
A business term deposit is a type of savings account that lets businesses earn a fixed interest rate by depositing a lump sum with a bank for a predetermined period. In return for leaving the money untouched until maturity, the bank guarantees your principal and the agreed interest rate.
In Australia, business term deposits held with an authorised deposit-taking institution (ADI) are also backed by the Financial Claims Scheme, protecting deposits of up to AUD $250,000 per legal entity per ADI. This means your money receives the same government protection whether you choose a major bank or a challenger bank.
What actually drives your business deposit rate
A few things determine the business term deposit rate you end up with, and some of them are within your control.
- RBA cash rate: The biggest external factor. When the cash rate goes up, term deposit rates tend to follow. The RBA raised rates 3 times in 2026 (February, March, May), landing at 4.35%. That is a big part of why business term deposit rates are where they are right now.
- Term length: You would expect longer terms to pay more, but that is actually not what is happening at the moment. The yield curve is inverted, which means 6 to 12-month terms are often paying better than 2 to 5-year terms. Because the market expects the RBA to eventually cut rates down the line, banks are less keen to lock in high rates for 3 or 5 years.
- Deposit size: Some providers tier their rates around AUD $100,000. Others, like AMP, keep things flat across deposits from AUD $5,000 to AUD $10 million.
- Interest payment frequency: Taking interest at maturity (instead of monthly or quarterly) usually gets you a slightly higher fixed interest rate, because the bank holds onto your full deposit for the entire term. If you do not need that interest hitting your account each month, maturity payouts will typically maximise your return.
Providers worth comparing
Not all business term deposits are the same, and the provider you choose makes a real difference to your rate. Here is a closer look at 8 providers currently offering business term deposits in Australia.
Judo Bank
Australia's biggest SME-focused challenger bank, purpose-built for small and medium businesses. Judo is fully online with no branches but consistently sits at or near the top of the market for business term deposit rates.
Judo won Canstar's Bank of the Year Award for Term Deposits for the 7th year in a row in 2026. Terms range from 3 months to 5 years, and the minimum deposit is just AUD $1,000, which is lower than most providers.
If you roll your full deposit over at maturity, Judo adds a 0.05% loyalty bonus on top of the standard rate. Interest can be paid monthly, annually, or at maturity depending on your term. Over AUD $9.9 billion has been deposited by term deposit customers as of June 2025.
AMP
AMP runs its GO Business Term Deposit on terms from 3 months to 2 years, with deposits accepted from AUD $5,000 up to AUD $10 million. The whole product is managed through the AMP Bank GO mobile app, including digital onboarding, maturity instructions, and statement access.
Interest is paid at maturity and the rate is fixed for the full term. AMP also gives business owners the option to time their interest payout to roll into the next financial year for tax planning purposes. Any director with Business Everyday Account access can open and manage a term deposit.
Great Southern Bank
A customer-owned bank that won Canstar's Customer-Owned Bank of the Year for Term Deposits in 2026. Great Southern Bank offers its Business+ Term Deposit with terms from 1 month to 12 months and a minimum deposit of AUD $5,000. The product is fully digital, built in partnership with Australian fintech Constantinople.
You can open a term deposit in under a minute through online banking if you are an existing customer, or in about 5 minutes as a new customer. Interest is paid at maturity, and there is a 14-day grace period after opening where you can adjust your term length, deposit amount, or interest instructions.
Bank Australia
A customer-owned, certified B Corp bank with competitive corporate term deposit rates, particularly on 6 and 12-month terms. Bank Australia is a good fit if ethical banking matters to you alongside returns.
As a customer-owned institution, profits go back to members rather than shareholders. Deposits are covered under the Financial Claims Scheme, and the minimum deposit is AUD $5,000.
Macquarie
Often called Australia's "fifth major bank," Macquarie sits between the Big 4 and the top challengers on pricing. Terms range from 3 months to 5 years with a minimum deposit of AUD $5,000.
If you are already a Macquarie business banking client, it is worth speaking to your relationship manager directly, because business rates may differ from what is listed on the personal banking page.
NAB
NAB offers business term deposits with terms from 30 days to 5 years and a minimum deposit of AUD $5,000. For terms of 12 months or more, you can choose to have interest paid monthly, quarterly, half-yearly, or annually. There are no set-up fees or monthly service fees.
For deposits of AUD $2 million or more, NAB asks you to contact a business banker directly for pricing. Early withdrawal requires 31 days notice and will reduce the interest rate you earn.
Westpac
Westpac is currently the most competitive of the Big 4 for business term deposit rates. It is offering an extra 0.10% p.a. bonus for existing customers who open or renew online, which brings its rates closer to challenger bank territory.
Terms range from 1 month to 5 years with a minimum deposit of AUD $5,000. Interest is paid at maturity for terms under 12 months, or you can choose monthly, quarterly, or annual payments on longer terms.
CommBank
CommBank offers business term deposits with terms from 1 month to 5 years and a minimum deposit of AUD $5,000. While CommBank's rates are generally lower than challenger banks, the convenience of managing everything through the CommBank app or NetBank may appeal if you already have your business banking set up with them.
Interest payment options include at maturity, monthly, quarterly, half-yearly, or annually depending on the term.
How to choose the right one for your business
A few practical things to keep in mind when you are ready to compare business term deposit rates.
- Match the term to your cash flow: Locking up cash for 12 months when you might need it in 6 is a mistake. Early withdrawal penalties can eat into your earnings fast. If you want the best of both worlds, consider a term deposit ladder: split your funds across a few deposits with staggered maturity dates, so a portion comes back to you every few months.
- Compare beyond your existing bank: Do not just default to whoever you already bank with. Spend 10 minutes evaluating the best business term deposit rates available and you will see the spread between providers is significant. A difference of 0.50% on AUD $200,000 over 12 months is AUD $1,000, and as a founder, that matters.
- Check minimum deposit requirements: Most providers sit at AUD $5,000, but it varies. Judo Bank starts from AUD $1,000, while AMP accepts deposits up to AUD $10 million.
- Set a maturity reminder: If you do not give instructions before your term deposit matures, most banks will automatically roll it into a new term at whatever rate they are offering at the time. That might not be the best deal on the market.
- Split large deposits across ADIs: If you are putting in more than AUD $250,000, spread it across multiple authorised deposit-taking institutions. The Financial Claims Scheme covers you per institution, so splitting your money means full protection on the entire amount.
- Consider whether a savings account fits better: If you know you will not touch the cash for 6 or 12 months, a business term deposit will almost always earn you more. The fixed interest rate is locked, no conditions to meet, no surprises. But if you are not sure when you will need the money, a high-interest savings account gives you flexibility with variable rates and immediate access.
Put your surplus cash to work
Business term deposit rates in Australia are at a high point right now. With the RBA cash rate sitting at 4.35% and the best providers offering above 5% p.a., there is genuine value in parking your surplus cash somewhere it can earn a return instead of collecting dust.
The whole process takes about 10 minutes with most providers. And once it is done, you know exactly what you will earn and exactly when you will get it back.
While traditional providers lock these funds away for fixed periods, modern cross-border platforms like Aspire are increasingly used by global founders to manage, move, and grow their active working capital simultaneously without the strict limitations of a standard brick-and-mortar bank account.
By offering fee-free local transfers and 1% cashback on international card spend, the Aspire business account ensures your active working capital is still driving cost savings while your term deposits handle the long-term growth.
FAQs
What is the highest business term deposit rate in Australia right now?
As of July 2026, the top business term deposit rates reach up to 5.50% p.a. on terms from 6 months to 5 years.
Are business term deposits safe?
Yes, if your provider is an ADI, your deposit is covered by the Financial Claims Scheme up to AUD $250,000 per legal entity. That applies to every ADI in Australia, big or small.
Can I pull my money out early?
Technically, yes. But most banks need 31 days' notice, and they will reduce the interest rate you have earned.
How does the RBA cash rate affect term deposit rates?
Directly. When the RBA raises the cash rate, banks tend to lift their deposit rates too.
Short term or long term, what is better right now?
Shorter, most likely. Due to the inverted yield curve, 6 to 12-month terms are paying better than 2 to 5-year terms at most providers. The market is pricing in eventual rate cuts, so banks are less willing to lock in high rates for years. A 6 to 12-month term is probably your best bet in the current environment.
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