Last updated: August 2026

Term Deposits with Monthly Interest Payments

Every Australian term deposit that pays interest monthly — sorted by rate. Useful for retirees or anyone who needs regular income from their savings.

  • Only monthly-paying term deposits shown
  • All terms included — 3 months to 5 years
  • Sorted by rate — best first
Compare all payment options Best term deposit rates →
Most popular term Best 12-month rates →

Who monthly-paying term deposits suit

  • Retirees who want regular income from their savings
  • Anyone managing a budget from a fixed sum
  • Savers who prefer to receive and reinvest interest rather than wait for maturity

Quick picks — monthly interest

  • Highest monthly-pay rate Judo Bank 5.40% p.a. · 5 years
  • Big 4 bank option ANZ 5.13% p.a. · 18 months

Best monthly rate by term

All Monthly-Paying Term Deposits

Note: monthly-paying rates are sometimes slightly lower than at-maturity rates from the same bank. The table below is sorted by rate — check the term column to make sure the commitment period suits you.

Bank / Provider Rate p.a.
Judo Bank Challenger 5.40% Best
Judo Bank Challenger 5.30%
MOVE Bank Neo 5.30%
Judo Bank Challenger 5.30%
Heartland Bank Challenger 5.25%
MOVE Bank Neo 5.25%
Judo Bank Challenger 5.25%
MOVE Bank Neo 5.25%
Newcastle Permanent Credit union 5.15%
Great Southern Bank Credit union 5.15% 55+ only
ANZ Big4 5.13%
IMB Bank Credit union 5.13%
ANZ Big4 5.13%
Great Southern Bank Credit union 5.10% 55+ only
Bank Australia Credit union 5.10%
People First Bank Credit union 5.08%
Bankwest Challenger 5.08%
Bankwest Challenger 5.08%
ANZ Big4 5.05%
NAB Big4 5.05%

Monthly income options change — we'll let you know when rates move.

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Monthly vs at-maturity interest — what to know

Most Australian term deposits pay interest at maturity — meaning you get your interest in one lump sum when the deposit ends. Monthly-paying products are less common but preferred by retirees and income-focused investors who need regular cash flow.

The rate on a monthly-paying product is occasionally slightly lower than the equivalent at-maturity rate from the same bank, reflecting the earlier payment of interest. However, the difference is usually small and the convenience of monthly income often outweighs it.

All term deposit rates Best term deposit rates →
Highest rates available Rates over 5% →
Most popular term Best 12-month rates →

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