Best 5-Year Term Deposit Rates in Australia (2025)
Australia’s 5-Year Term Deposit Landscape in 2025
Choosing the right 5-year term deposit in Australia is more important than ever as interest rates move with the economy.
As of October 2025, the RBA cash rate is 3.60% and deposit rates are following.
The best 5-year term deposit rates are 4.30% p.a. from Judo Bank and Rabobank, while IMB (4.00%) and BankVic (3.85%) are also competitive.
Household savings are tightening, with the ABS reporting a savings ratio of 4.2% in Q2 2025, down from pandemic highs.
Looking forward, the RBA expects inflation to rise above 3% by end 2025 and then back to 2–3% by 2026, which should ease term deposit rates.
Savers considering a 5-year lock-in should act before rates drop further.
Judo Bank – Top 5-Year Term Deposit Rate in Australia
Judo Bank has become a well-known name in Australia’s digital banking space. With a 5-year term deposit at 4.30 % p.a., the bank is one of the highest in the long-term deposit market. In a world where savers want stability and growth, Judo’s product is competitive and secure.
According to Canstar (2025), Judo Bank is in the top tier for term deposit rates, beating many of the Big 4 banks which sit around 3.0–3.5 % p.a. for similar 5-year terms.
Why Judo Bank is for Savers
High return security: Lock in 4.30 % p.a. for 60 months and earn steady returns regardless of interest rate movements.
Government guarantee: Deposits up to $250,000 are covered by the Financial Claims Scheme.
Digital-first model: Lower overheads means Judo can pass savings back to customers in the form of higher interest.
Flexible payout options: Choose interest payments at maturity or periodically to suit your financial planning.
Example: Growth Over 5 Years
Here’s how a deposit with Judo compares against a typical Big 4 bank:
With Aussies feeling the pinch from rising living costs, having a guaranteed return on investment can bring a sense of peace of mind. Judo Bank’s 4.30% 5-year term deposit ticks a lot of boxes for those who value stability over the uncertainty of speculation.
Coupled with its digital-first business model and the added security of being part of the government guarantee scheme, Judo is quickly building a reputation as one of the most reliable banking alternatives on the market in 2025.
Rabobank Australia – The go-to for serious savers
Rabobank Australia is standing out from the pack as a top contender for Aussies wanting to lock in a decent return over the long-haul. With its 5-year term deposit rate coming in at 4.30% p.a. Rabobank is right on par with Judo Bank – which is no mean feat.
For people who put stability, doing the right thing by the environment, and steady-as-she-goes growth at the top of their list, it’s fast becoming a name you can trust.
Rabobank has a deep history of working in agricultural and cooperative banking around the world and has built a solid rep for sustainable finance.
In Australia its retail products get a solid thumbs up from customers, offering a winning combination of competitive rates and the reassurance that comes with knowing you’re backing a bank that puts its money where its mouth is.
Why savers are flocking to Rabobank
Market beating returns: 4.30% p.a. over 5 years – one of the best deals going.
Doing good, doing well: They really do care about the environment and giving back to the community.
Your deposits are safe: Protected up to $250,000 under the Financial Claims Scheme.
A bank you can rely on: They’re not just big overseas, they’ve also got a strong foot on the ground in Australia.
Example: How Rabobank Compares
Here’s how Rabobank’s 5-year term deposit stacks up against the Big 4 banks (average 3.20 % p.a., as per
Canstar 2025):
With a market leading rate, a global reputation and government backed deposit protection, Rabobank offers one of the best 5 year savings products in Australia. For savers looking for long term certainty and values based banking Rabobank is the way to go in 2025.
IMB Bank – Strong Member Owned Option
IMB Bank offers a solid 5 year term deposit at 4.00 % p.a. which is a strong contender in the Australian savings market.
While slightly below the top rates of 4.30 % offered by Judo Bank and Rabobank, IMB stands out because of its member owned model which reinvests profits into better rates and community programs rather than shareholder returns.
Founded in 1880 IMB is one of the oldest building societies in Australia and has a strong presence in New South Wales and the ACT. For savers this means a long history of trust, stability and ethical banking practices.
Why IMB Bank is for Savers
Competitive rate: 4.00 % p.a. fixed for 5 years.
Member owned institution: Profits reinvested into customers and local communities.
Government guarantee: Deposits up to $250,000 covered by the Financial Claims Scheme.
Proven history: Operating since 1880, with strong regional ties.
Example: IMB vs Big 4 Banks
Here’s how IMB’s offering compares with the Big 4 average rate of 3.20 % p.a:
For Australians who care about ethical banking and community investment, IMB Bank offers more than just a good rate. Its 4.00 % p.a. 5-year term deposit is backed by government protection and over 100 years of banking experience. So IMB is a great choice for savers who want good returns and values-based banking.
BankVic – Community Bank with Competitive Rates
BankVic remains a trusted community bank in Victoria, offering competitive term deposit products for long-term savers. With a 5-year fixed rate of 3.85 % p.a., BankVic is an alternative to the big banks for Australians, while staying true to its cooperative banking roots.
Originally set up to serve Victoria Police and emergency services workers, BankVic has since grown to include broader membership while remaining committed to its community focus. Unlike shareholder-driven banks, BankVic puts profits back into members and local programs, so depositors get the double benefit of financial returns and community impact.
Why BankVic?
Good rates: 3.85 % p.a. for 5-year deposits.
Community-based model: Profits invested in members and local projects.
Trusted history: Strong ties to Victoria’s emergency services and wider community.
Government guaranteed: Deposits up to $250,000 covered by the Financial Claims Scheme.
Example: BankVic vs Big 4 Banks
While BankVic’s rate is below the top performers like Judo and Rabobank at 4.30 %, it is well above the Big 4 average of 3.20 % p.a. (Canstar 2025).
BankVic’s 3.85 % p.a. 5-year term deposit is the balance of reward and responsibility. With community banking, heritage and government protection, BankVic offers savers an option that goes beyond profit, for individual goals and community wellbeing.
Macquarie Bank – 5-Year Returns from an Established Institution
Macquarie Bank is one of Australia’s biggest banks, offering savers stability and trust. Its 5-year term deposit rate of 3.80 % p.a. is a solid return for those who want to lock in earnings over the long term.
Not the highest in the market but stronger than the Big 4 banks, this rate gives depositors an edge while enjoying Macquarie’s well established reputation.
Globally known for asset management, investment banking and advisory services, Macquarie does more than just term deposits. Its financial ecosystem and digital platforms provide convenience and reliability, for Australians who want a secure option from a respected institution.
Why Savers Choose Macquarie
Competitive rate: 3.80 % p.a. fixed for 5 years.
Strong brand: Global finance brand.
Government guarantee: Deposits up to $250,000 covered under the Financial Claims Scheme.
Digital convenience: Online management and account access.
Example: Macquarie vs Big 4 Banks
Compared with the Big 4 average of 3.20 % p.a. (Canstar 2025), Macquarie offers clear benefits:
For Australians who want stability, digital convenience and competitive returns, Macquarie’s 3.80 % p.a. 5-year term deposit is the way to go. Not the highest rate in the market but beats the Big 4 and backed by one of the most well known financial brands in Australia.
Adelaide Bank – Regional Banking with Credibility
Adelaide Bank has built a strong reputation as a regional bank offering long term savings products with competitive rates.
Their 5-year term deposit at 3.85 % p.a. is on par with BankVic, so if you want stable returns and community rooted credibility then this is a great option.
Founded in South Australia, Adelaide Bank has grown into a national financial institution while still maintaining its regional character. For many savers this combination of local trust and national reach provides extra reassurance especially compared to newer or less established institutions.
Why Savers Choose Adelaide Bank
Competitive returns: 3.85 % p.a. for a 5-year fixed deposit.
Regional credibility: Long history and well known brand in South Australia.
Government backed security: Deposits up to $250,000 covered under the Financial Claims Scheme.
Balanced choice: Higher than Big 4 average rates but accessible for everyday savers.
Example: Adelaide Bank vs Big 4 Banks
Adelaide Bank’s rate outperforms the Big 4 average of 3.20 % p.a. (Canstar 2025), offering savers stronger returns:
With its roots in regional heritage, competitively priced products and the backing of government support, Adelaide Bank has built a name as a solid bet for savings. What they offer is a dependable savings option with a 3.85 % p.a. rate over a 5 year period.
Unity Bank – Coalface of stability
Unity Bank offers Aussies a reliable way to save for the long haul, through a 5 year term deposit with a steady interest rate of 3.55 % p.a. Not the highest on the market, but this puts them in a solid second place behind Judo Banks and Rabobank’s 4.30% offerings.
What Unity really offers is a savings product for those who value the reassurance that comes from banking with a business that has a reputation for wrapping customer needs and solid returns in one secure package.
Operating as a member-owned co-op, Unity Bank really knows it’s local sector – serving up strong links to maritime, mining and industrial industries that go all the way back to decades past.
When profits roll in, they get reinvested straight back into the business and its members, rather than lining the pockets of external investors. Which makes Unity a great choice for those who like the idea of a bank that’s genuinely committed to giving back to its community.
Why People Put Faith in Unity Bank
Have a steady hand on the tiller with a 3.55 % p.a. return for 5 years on your deposit.
Member-owned and run, Unity acts as a true champion of member services and profit reinvestment.
And just to put the icing on the cake, your deposits are protected up to **$250,000 per account by the Financial Claims Scheme.
Long history of putting community first: Years of strong ties to local industry & a deep respect for serving the needs of its people.
Example: Unity Bank vs Big 4 Banks
Compared to the Big 4 average of 3.20 % p.a. (Canstar, 2025), Unity Bank delivers better long-term value:
Unity Bank may not be the highest interest rate but its member-first approach, steady returns and government backed safety makes it a safe option. For Australians looking for both financial security and ethical banking, Unity’s 3.55 % p.a. 5 year term deposit is a good balance.
HSBC Australia – Global Banking with Local Stability
HSBC Australia offers savers a long term investment option with its 5 year term deposit rate of 3.50 % p.a. available for deposits from $5,000. Although the rate is lower than Judo Bank (4.30 %) and IMB Bank (4.00 %), HSBC appeals to conservative investors who value safety, brand and global reach.
As one of the world’s largest banks with operations in over 60 countries, HSBC gives Australian savers confidence in its international reputation and diversified financial base.
For many expats, globally mobile professionals and cautious depositors, this global presence adds an extra layer of security that smaller regional banks can’t.
Why Choose HSBC Australia?
Rate stability: 3.50 % p.a. fixed for 5 years.
Trusted brand: Backed by one of the world’s biggest banks.
Low entry point: Available for deposits from $5,000.
Government protection: Deposits up to $250,000 per customer per ADI covered under the Financial Claims Scheme.
Appeals to expats: Global presence means familiarity and trust.
Example: HSBC vs Big 4 Banks
While HSBC trails the market leaders, its offering still outpaces the Big 4 average of 3.20 % p.a. (Canstar 2025):
HSBC’s 3.50 % pa for 5 years term deposit might not have the highest rate on the market but it’s a bank with a strong presence globally , a super-low minimum deposit requirement which makes it very accessible and a government-backed guarantee which is a huge safety net.
Bankwest – A Great Choice for Savers Who Value Convenience & Reliability
Bankwest seems to be a strong contender for people in Australia who want the best of both worlds – a hassle-free digital banking experience and some decent returns. Their 5 year term deposit is sitting at a 3.52 % pa rate which puts them in the middle of the pack on the rate front.
While it doesn’t match the leading rates of Judo Bank or Rabobank at 4.30 %, it offers better-than-average returns compared to the Big 4 banks, coupled with the security and scale of being a subsidiary of the Commonwealth Bank of Australia.
One thing about Bankwest is they’ve made a bit of a name for themselves as a digital-first bank which means managing your money online and through their app is super easy – no need to visit a branch if you don’t want to.
Why People Choose Bankwest
pretty good returns of 3.52 % pa fixed for 5 years
easy online banking – sort your finances from the palm of your hand
strong support from the Commonwealth Bank – a well established and trusted brand
Government guarantee: Deposits up to $250,000 per customer per ADI covered under the Financial Claims Scheme.
Example: Bankwest vs Big 4 Banks
Compared to the Big 4 average of 3.20 % p.a. (Canstar 2025), Bankwest’s rate yields higher returns:
Bankwest’s 3.52 % p.a. 5 year term deposit is the perfect fit for savers who want a nice balance of security, a hassle-free experience, and some really decent returns. Its got some top-notch digital tools and the backing of one of Australia’s biggest banks, so it’s a pretty solid choice for people who are into their tech & planning ahead for the long haul.
Suncorp Bank – The Reliable 5 Year Term Deposit Option
Suncorp Bank rounds out the options with its 5 year term deposit rate of 3.25 % p.a.. True, it’s not the highest rate out there – Bankwest is pushing 3.52 % and Adelaide Bank is a nose ahead at 3.85 % – but Suncorp has a certain appeal for people who really appreciate the reputation of a big player in the financial sector that can offer banking, insurance and wealth management all from one place.
As one of Australia’s largest regional banks, Suncorp’s got a long history in Queensland and beyond, with a large customer base to back it up. And that focus on being stable and reliable is just what a lot of savers are looking for – it’s a great feeling to know your deposits are in good hands, even if the returns aren’t quite as high as what other banks are offering (like Judo Bank at 4.30 % for instance).
Why Savers Go with Suncorp
A brand you can trust: Been around for ages, got a strong banking and insurance arm behind it.
Decent returns: 3.25 % p.a over 5 years – nothing too shabby.
You’re covered: Deposits up to 250,000 a pop, no worries, protected under the Financial Claims Scheme.
They’re really part of the community: They’re pretty strong in Queensland and out in the regions.
Example: Suncorp vs Big 4 Banks
Compared to the Big 4 average of 3.20 % p.a. (Canstar, 2025), Suncorp still offers slightly better outcomes:
Suncorp’s 3.25% p.a. 5-year deposit might not have the highest interest rate on offer, but it still remains a very safe option with a strong and stable record as a government-guaranteed choice. For savers who are after security and the stability of a well-established banking group, Suncorp is a good bet for long-term planning.
5-Year Term Deposit Rates – Australia 2025
Conclusion
For Aussies in 2025, Judo Bank and Rabobank are top of the pack with a 4.30 % p.a. interest rate that’s really hard to beat. They are offering the strongest long-term returns out there.
IMB Bank, BankVic, and Adelaide Bank provide a solid alternative, finding a good balance between giving back to the community and offering competitive rates. They give people a choice to put their money with institutions that are all about local support.
Macquarie Bank is geared towards savers who value backing from a big, well-established global bank, while Unity Bank and HSBC Australia appeal to those who like the idea of being part of a member-owned group or just want that international credibility.
Bankwest makes it easy to save with its great online banking and reliable rates, while Suncorp Bank still stands as a safe, government-backed option for cautious savers.
OriginallyPublished: https://www.starinvestment.com.au/best-5-year-term-deposit-rates-australia/
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