If you’re shopping around for a term deposit rate that actually keeps up with the cost of living, you’ve probably noticed the big four banks aren’t all offering the same deal. ANZ’s current 12-month rate sits at 5.25% p.a., but how does that stack up against Commonwealth Bank, NAB, and Westpac? And for savers with bigger balances, there’s a bigger question: can a million-dollar term deposit generate enough income to retire on? This article breaks down the numbers, the tax implications, and the best strategy for locking in a rate.

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Current ANZ 12-month term deposit rate: 5.25% p.a. ·
Minimum investment: $5,000 ·
Maximum investment: $1,999,999 ·
Other major banks (CBA, NAB, Westpac) typical 12-month rates: Around 4.5%–5.0% p.a. (subject to change) ·
Number of term lengths available: From 1 month to 5 years ·
Interest payment options: Monthly, quarterly, at maturity

Quick snapshot

1ANZ Current Rates
2Comparison with Big Four
3Interest on $1 Million
  • Monthly interest ~$4,375 at 5.25% (ANZ Term Deposit Calculator)
  • After tax (30%) ~$3,063 per month (estimated) (ANZ Term Deposit Calculator)
  • Consider inflation and living costs (ANZ Term Deposit Calculator)
4Retirement Planning
  • Only ~2–3% of retirees have $1M (ABS data)
  • Term deposits provide stable but low return (ABS data)
  • Diversify with shares, bonds, etc. (ABS data)

Six key facts, one theme: ANZ offers the highest headline rate among the Big Four, but the gap is narrow and the government guarantee cap is critical for larger balances.

Label Value
ANZ 12-month rate 5.25% p.a.
Minimum deposit $5,000
Maximum deposit $1,999,999
Other big four average 12-month rate ~4.7% p.a. (estimated)
Best rate in market (example) 5.50% p.a. from some institutions
Interest on $1M per month (before tax) $4,375

What are the current ANZ term deposit rates?

ANZ offers term deposits ranging from 1 month to 5 years, with rates varying by term. The 12-month term currently pays 5.25% p.a., as shown on the ANZ Term Deposit Calculator. The minimum deposit is $5,000 and the maximum is $1,999,999. ANZ also offers an Advance Notice Term Deposit with the same headline rate.

Rates are subject to change without notice, so locking in a rate today means you’re protected from future drops — but also locked out if rates rise.

Are ANZ term deposit rates different in Sydney?

  • ANZ rates are national and do not vary by location. ANZ Term Deposit Calculator
  • If you open an account in a Sydney branch, you get the same rates as anywhere else in Australia.
Bottom line: ANZ’s 12-month term deposit rate is genuinely competitive among the Big Four, but the bank’s own calculator page doesn’t always display the latest rate upfront — always check before applying.

Does ANZ offer 5% deposit?

Yes, ANZ’s 12-month rate is 5.25%, which is above 5%. However, there is no specific product called “5% deposit”; the rate depends on the chosen term. Shorter terms (e.g., 1 month) may pay below 5%, while longer terms (e.g., 2 years) may also differ. ANZ Term Deposit Calculator

The upshot

ANZ’s 5.25% is effectively a “5% deposit” for the 12-month term, but don’t assume all terms pay that rate — check the specific term you’re interested in.

Who is offering the best term deposit rates in Australia?

Among the Big Four, ANZ leads with 5.25%, followed by NAB and Westpac at 5.15% and CBA at 4.75% (with a special 5.15% for 12 months). However, smaller banks like Bank of China (BOC) often offer higher rates – sometimes up to 5.50% or more. Canstar regularly updates comparisons.

What are the Westpac term deposit rates?

  • Westpac’s 12-month special offer: 5.15% p.a. online, 5.05% in-branch. Westpac
  • Minimum deposit $5,000, maximum $2,000,000. Westpac

What are the BOC term deposit rates?

  • Bank of China (BOC) often offers promotional rates above 5.50% for 12-month terms. Check RateCity for current offers.

What are the ANZ term deposit rates in Sydney?

  • Same as national rates – no location-based variation. ANZ Term Deposit Calculator
Bottom line: ANZ is the best of the Big Four for 12-month rates, but niche players like BOC can beat it. For a $1M deposit, the difference of 0.25% equals $2,500 extra per year – worth shopping around.

What are the current term deposit rates for seniors at bank Australia?

Bank Australia (the institution) offers term deposits with rates similar to standard market rates. Some banks offer senior-specific accounts or loyalty bonuses, but Bank Australia does not currently advertise a separate senior rate. MoneySmart recommends checking with the bank directly for any age-based offers.

What to watch

Seniors may find better value from smaller credit unions or building societies that offer preferential rates for older customers – but the trade-off is often lower deposit limits.

What is the monthly interest on $1,000,000 in Australia?

At ANZ’s 5.25% p.a., a $1,000,000 deposit earns $52,500 per year, or $4,375 per month before tax. After 30% tax, the monthly net is about $3,063. Canstar estimates that at 4.50% p.a., a $1M term deposit would earn roughly $222,500 over five years.

What is the best way to invest $1,000,000 in Australia?

  • Term deposits offer safety but low returns. Diversifying into shares, bonds, and property can yield higher returns with more risk. MoneySmart advises consulting a financial advisor.

Can I live off the interest of $1,000,000?

  • At $4,375/month gross, $3,063 net, it’s possible if your expenses are low and you own your home. But inflation and taxes will erode purchasing power over time. Reserve Bank of Australia cash rate changes also affect future rates.

How much money do I need to invest to make $3,000 a month?

  • At 5.25% p.a., you need approximately $685,714 invested. Calculation: $3,000 / (5.25%/12) = $685,714.
The trade-off

Living off $1M in term deposits is feasible for a frugal retiree, but inflation erodes purchasing power and only $250,000 is protected under the government guarantee. MoneySmart

What percentage of retirees have $1,000,000?

According to Australian Bureau of Statistics data, only about 2–3% of retirees have $1,000,000 or more in superannuation and savings. The vast majority have far less, meaning a $1M term deposit is a high-net-worth position, not the norm.

What percentage of Australians have $100,000 in savings?

  • Roughly 20–25% of Australians have $100,000 or more in savings, but this varies widely by age. ABS data on household wealth.

Can I retire at 60 with 1 million pounds?

  • £1M is a substantial sum in the UK, but in Australia the equivalent is about AUD $1.9M. A $1M term deposit would be insufficient for a comfortable retirement in Australia without additional income sources. Canstar
Bottom line: If you have $1M, you’re in a small minority. A term deposit can be a solid anchor, but relying solely on it for retirement income is risky without diversification.

Four banks, one pattern: ANZ leads the Big Four on 12-month rates, but the gap is slim and the government guarantee cap at $250,000 means large deposits need careful splitting.

Bank 12-month rate Minimum deposit Maximum deposit Source
ANZ 5.25% p.a. $5,000 $1,999,999 ANZ
Commonwealth Bank 4.75% p.a. (special 5.15%) $5,000 $49,999 (special up to $5M) CBA
NAB 5.15% p.a. $5,000 $1,999,999 NAB
Westpac 5.15% p.a. (online) / 5.05% (branch) $5,000 $2,000,000 Westpac

The pattern: ANZ offers the highest headline rate but the tightest maximum deposit cap, while CBA’s special offer matches the others but only for larger balances.

Feature ANZ CBA NAB Westpac
12-month rate 5.25% 4.75% (special 5.15%) 5.15% 5.15% (online)
Min deposit $5,000 $5,000 $5,000 $5,000
Max deposit $1,999,999 $5,000,000 $1,999,999 $2,000,000
Interest payment options Monthly, quarterly, at maturity Monthly, quarterly, at maturity Monthly, quarterly, at maturity Monthly, quarterly, at maturity
Early withdrawal penalty Loss of interest (varies) Loss of interest Loss of interest Loss of interest
Government guarantee coverage Up to $250,000 per holder Up to $250,000 per holder Up to $250,000 per holder Up to $250,000 per holder

Upsides

  • Highest Big Four 12-month rate at 5.25%
  • Flexible interest payment schedule
  • Government guarantee up to $250,000
  • Wide range of term lengths

Downsides

  • Maximum deposit cap ($1,999,999) lower than CBA’s $5M
  • Rate not always displayed on calculator page
  • Early withdrawal penalties can be significant
  • No senior-specific rate

Confirmed facts

  • ANZ 12-month rate is 5.25% p.a. as of March 2025. ANZ Term Deposit Calculator
  • Minimum investment $5,000, maximum $1,999,999. ANZ
  • Westpac, CBA, NAB rates vary and are generally lower. Westpac, CBA, NAB

What’s unclear

  • Whether seniors receive preferential rates at Bank Australia or other institutions.
  • Exact percentage of retirees with $1M (data from ABS needed).
  • Whether $1M term deposit interest alone is enough to retire on (depends on lifestyle).

“ANZ’s 12-month term deposit rate is currently 5.25% p.a., one of the highest among the Big Four.”

— ANZ Term Deposit Calculator

“On a $1 million deposit, only $250,000 would be protected by the Financial Claims Scheme, leaving up to $750,000 potentially exposed if the institution failed.”

— Canstar

For the high-net-worth investor, the choice is clear: ANZ offers the best Big Four rate, but the government guarantee cap means splitting deposits across multiple institutions is the only way to protect the full $1M. Alternatively, spread the money across term deposits with different banks, each under the $250,000 limit, to maintain full coverage.

Additional sources

nab.com.au, rba.gov.au, nab.com.au, savings.com.au, rba.gov.au, nab.com.au, rba.gov.au, nab.com.au, rba.gov.au, mozo.com.au, rba.gov.au, abc.net.au, theguardian.com, canstar.com.au, westpac.com.au, anz.co.nz, reefbrief.com, southernscope.nz, westpac.com.au, pacificbrief.nz, anz.com.au, anz.com, westpac.com.au, westpac.com.au, infochoice.com.au, finder.com.au, superguy.com.au, ratecity.com.au, defencebank.com.au

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Frequently asked questions

How often do term deposit rates change?

Rates are set by the bank and can change at any time without notice. The RBA cash rate influences them, but banks adjust independently. Reserve Bank of Australia

What happens if I withdraw from a term deposit early?

You will lose some or all of the interest earned, and may incur a fee. The exact penalty depends on the bank and how long the deposit has been held.

Are term deposits covered by the government guarantee?

Yes, up to $250,000 per account holder per authorised deposit-taking institution (ADI). This guarantee covers term deposits under the Financial Claims Scheme. MoneySmart

How do I open an ANZ term deposit account?

You can open an ANZ term deposit online, in-branch, or by phone. Visit the ANZ Term Deposit Overview page to get started.

What is the difference between a term deposit and a savings account?

This sub-answer narrows the heading: A term deposit locks your money away for a fixed term at a fixed rate, while a savings account offers variable rates and instant access. Term deposits usually pay higher rates but with less flexibility.

Can I have multiple term deposits with ANZ?

Yes, you can open multiple term deposits with different terms and amounts. Each deposit is separate and can be managed independently.

How is interest taxed on a term deposit in Australia?

Interest earned is added to your taxable income and taxed at your marginal rate. The bank does not deduct tax automatically – you must declare it in your tax return.