Commonwealth Bank Term Deposits

Explore Commonwealth Bank's term deposit offers and interest rates to help you compare your options with Savvy.

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, updated on September 11th, 2023       

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The Commonwealth Bank of Australia (CBA or CommBank, as it is most commonly known), was founded by the Australian Government more than a century ago. It was listed on the stock exchange in 1991 and fully privatised by 1996.  

Over the past century, it has grown to become the largest of Australia’s big four banks, with almost 875 branches across the country, 49,000 employees, 800,000 shareholders and about 16 million customers. CBA now also owns Bankwest, Colonial First State Investment and the ASB Bank in New Zealand.  

Find out if a CBA term deposit is the best place to invest your savings. Compare interest rates and terms with other banks, and then start your investment journey today here with Savvy.

*Please note that Savvy does not represent Commonwealth Bank for its term deposit products. 

Commonwealth Bank term deposits explained

What term deposits does Commonwealth Bank offer?

CBA offers just about every term deposit you could imagine, having a wide range of term deposits available. It also offers a tiered interest system, with higher interest rates on offer for larger sums deposited. 

CommBank: common interest rates on offer 

Term length offered Interest Rate $5,000 to $49,999 Interest rate $50,000 to $2 million
1 month
0.45% p.a.
0.50% p.a.
2 months
0.55% p.a.
0.60% p.a.
3 months
0.70% p.a.
0.75% p.a.
6 months
1.20% p.a.
1.25% p.a.
9 months
1.45% p.a.
1.50% p.a.
12 to 17 months
1.95% p.a.
2.00% p.a.
18 to 23 months
2.05% p.a.
2.05% p.a.
24 to 47 months
2.20% p.a.
2.25% p.a.
48 to 60 months
2.45% p.a.
2.50% p.a.
Special offer: 18 months
3.00% p.a.
3.00% p.a.

(Effective 23 September 2022)

All interest rates are quoted for deposits with interest paid either at maturity or annually. Lower interest rates are paid if interest is paid monthly or half-yearly. 

Minimum and maximum deposit amounts 

The minimum deposit required is $5,000 and the maximum permitted is $2 million. Larger investments are available by personal negotiation. 

Early withdrawal penalties  

If you wish to withdraw your term deposit funds early, the amount of interest you’ll earn will be reduced on a sliding scale, depending on how much of your original term there is remaining. You will also be charged a prepayment administration fee of $30 if you choose to withdraw your funds early. 

Early withdrawal notice period 

You’ll need to give 31 days’ notice for early withdrawal of your term deposit funds.  

Fund holding facility 

Unlike other banks which automatically renew your term deposit for an identical term if no other instructions are received upon maturity, CommBank places those funds into a holding account earning an interest rate of 0.15% p.a. Funds are reinvested every seven days until instructions are received as to what to do with them. 

You can opt to receive an email, SMS or NetBank notification prior to the maturity of your deposit. 

Business and SMSF term deposit accounts 

A full range of term deposits is available for self-managed super funds, trusts and business customers, with interest rates very similar to those offered for private investments. 

Farm management deposits 

CommBank also offers the option of farm management deposits. Eligible primary producers can set aside pre-tax income in good years and use it as a cash reserve when times get tough. Income tax is only payable when the funds are withdrawn from the management deposit.  Conditions include: 

  • Fixed terms from three months up to two years
  • A minimum deposit of 12 months is necessary to get the tax benefits described above
  • Deposit amounts from $1,000 up to $800,000

Interest rates vary according to the term length, but are generally lower than the rates quoted above 

How do I open a Commonwealth Bank term deposit?

If you’re an existing CBA customer, you will be able to open a term deposit through your existing Netbank account number and online banking. Just use your usual login details.  

If you are new to CBA, you can open a term deposit once you’ve opened a transaction or savings account with the bank. You can either do this at a branch, over the phone or by following the online prompts to open an account. You will need to provide proof of your ID, so make sure you have your passport and driver’s licence handy when opening your initial account. 

What are the requirements for opening a Commonwealth Bank term deposit?

The requirements for opening a term deposit with Commonwealth Bank are as follows: 

  • You’ll need to be over 18 years of age
  • You’ll need to have an Australian residential address
  • You’ll need an existing NetBank ID and CommBank account in your name
  • You’ll need to provide your tax file number so that withholding tax can be calculated accurately 

The pros and cons of CBA term deposits


All needs catered for

CommBank offers a wide range of deposit options including options for businesses, trusts, SMSFs and farm management deposits for farmers. 

Wide range of terms available

CBA offers term deposits from one month right up to five years, so whatever your investment needs, you should be able to find a term to match perfectly. 

Holding facility

If you haven’t given CommBank instructions on what to do with your funds at the end of your term deposit, they will be placed in a holding facility earning some interest until instructions are received. 


Lower interest rates

Australia’s largest bank does not offer the highest interest rates in the country and, in general, their rates are lower than many other online banks and building societies. 

Fee for early withdrawal

A $30 early withdrawal administration fee is charged if you do choose to withdraw your funds prior to the expected maturation date of your term deposit. 

Interest must be paid into a CommBank account

The interest you earn can either be paid into your term deposit or another CommBank account, but can’t be paid to another bank account with a different financial institution. 

More of your frequently asked questions about term deposits

What is a term deposit?

Although many people are familiar with the phrase ‘term deposit,’ not everyone knows what a term deposit is. A term deposit is an agreement between you and your bank or financial institution to lock away a set amount of money for a set period (known as the ‘term’ of the deposit) in return for a fixed rate of interest. As the interest rate and length of the deposit are fixed, you’ll be able to calculate in advance how much money your savings will earn during the life of the term deposit. When your chosen term is over, you can choose to either withdraw your funds and the interest earned or roll them over into another term deposit. 

How can I work out how much interest I’ll earn on my term deposit?

You can use Savvy’s term deposit calculator to help you work out exactly how much interest your savings will earn over a set period. Just enter in the amount you wish to deposit, the term of the deposit and the interest rate offered, and the calculator will show you how much interest your savings will earn. 

How do I find the best short term deposit rates?

The best short term deposit rates for term deposits in Australia are typically offered by online financial institutions, smaller mutual banks and credit unions. This is because mutual banks and credit unions channel all profits back to their members, which means they’re able to offer more attractive interest rates. Online banks also don’t have the overheads of maintaining bricks and mortar branches, so they’re often able to offer very attractive interest rates for short-term savings too. For this reason, it’s important to compare interest rates with Savvy before making your financial investment decision. 

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