Australia's best-value term deposits revealed for 2026
Money reveals Australia's best-value term deposits as part of the 2026 Best of the Best awards.
Bendigo Bank named Money's Best-Value Term Deposits - Long-Term - Banks
The returns on offer to Australians with savings in the bank have taken a downward turn. But there's still an opportunity for savers to earn a better return on their money by shopping around and entrusting their savings to a bank offering better value.
Billing itself as the 'better big bank', Bendigo Bank can certainly make that argument with confidence when it comes to the value provided by its long-term term deposits.
Bendigo Bank took top spot in the category this year, thanks to the interest rates available on its two-, three-, four- and five-year term deposits that were, on average, higher than its big bank competitors.
Savers who are willing to lock at least $5000 away in a Bendigo Bank term deposit will earn a fixed-interest rate on their money over the course of their chosen term and receive their interest at maturity.
Savers may also sleep easier knowing that funds up to $250,000 kept in a Bendigo Bank term deposit will be guaranteed by the Federal government under the Financial Claims Scheme.
Of course, one common question savers might have when it comes to term deposits is why they would want to lock away their savings for years at a time rather than keeping them in a more accessible location such as a savings account?
According to Bendigo Bank, long-term term deposits can provide competitive rates that are guaranteed over the course of the term, meaning that savers have more certainty if they're looking to generate a specific return over a set timeframe.
BankVic named Money's Best-Value Term Deposits - Long-Term - Customer-Owned Banks
One of the strengths of the Australian banking ecosystem is the diversity of choice available to banking customers. There are major banks. International banks. Digital banks. Regional banks. Banks that cater to specific occupations.
BankVic is one of them. Originally formed in 1974 in Victoria as a credit union for police officers, BankVic now has more than 120,000 members made up of workers from the police, health and emergency services sector.
As a customer-owned bank, BankVic says that it's able to reinvest its profits in the banking experience it offers to these members. Part of which is designing products that are a cut above.
That certainly rings true for BankVic's longer term deposits. The competitiveness of the rates available across its two-, three-, four- and five-year terms helped BankVic take out top spot in this category ahead of its customer-owned counterparts.
While savers will naturally be focused on the returns, there are other features to a BankVic term deposit worth knowing about.
Customers will need to be willing to lock away at least $5000 over the term in exchange for interest which can either be paid annually or at maturity. And unlike some other banks, BankVic won't charge a fee for savers who need to withdraw their funds ahead of schedule.
Savings up to $250,000 per person held in a BankVic term deposit will also be safeguarded under the federal government's Financial Claims Scheme in the unlikely event that BankVic goes under.
Judo Bank named Money's Best-Value Term Deposits - Long-Term - Boutique Banks
The decision to lock away money in a term deposit for three, four or even five years isn't likely to be an impulsive one. Savers may want to ensure that the timeframe aligns with their goals and that they can live without that money.
They might also want to make sure that they're being adequately rewarded by way of a competitive interest rate. The kind of rates that 2026 Best of the Best award winner Judo Bank offers with its longer term deposits.
"At Judo, we are committed to helping our customers grow their wealth with confidence and to support their financial wellbeing, and it's great to be acknowledged for this," says Patrick Nolan, general manager of product at Judo Bank.
And it appears that savers are taking advantage of the certainty that comes with a fixed rate - not to mention the higher rates often available on longer term deposits - to work towards a range of goals.
"Many of our customers use long-term deposits to save for major life milestones and things like a home deposit, children's education or their retirement plans," says Nolan.
"Others are focused on building financial security and setting aside funds they don't need immediate access to, but want to see grow steadily and safely over time.
"There's also a growing segment of customers who value the predictability of a fixed return in the uncertain economic environment we are seeing now. For them, a long-term term deposit is a way to lock in peace of mind while staying disciplined with their savings."
Want more Best of the Best? Australia's best-value super funds for young people
How do you find the best term deposits?
Term deposits (TDs) were assessed according to the highest interest rates in two categories: short-term TDs that paid the best rates at maturity for terms shorter than 12 months and long-term that paid the best annual interest rates for terms longer than one year.
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