BestFind.com.au provides factual information in relation to financial products. While
attempts to make a wide range of products and providers available, it may not cover all the
to you. Moreover, we cannot be responsible for changes made to this information by product
inaccurate information obtained from a product provider. All product information comes from the
provider or publicly available information and to the best of our knowledge is correct at time
The information published on BestFind.com.au is general in nature only and does not consider
objectives, financial situation or particular needs and is not recommending any particular
product to you. If you
decide to apply for a product you will be dealing directly with that provider and not with
BestFind.com.au recommends that you read the relevant PDS or offer documentation before taking
Tips for comparing 2 month term deposits
A term deposit, also known as a fixed deposit, is an account where your funds are locked for a period of time earning a fixed interest rate. Once the term is over, you can choose to reinvest your money or withdraw it.
Pros of a 2 month term deposit:
- A 2 month term deposit is considered a safe investment.
- If interest rates fall, you will still earn the same interest rate on your 2 month term deposit.
- 2 month term deposits can encourage healthy spending habits because the money is not available without a hefty penalty.
Cons of a 2 month term deposit
- 2 month term deposits are not liquid assets and in the event of an emergency, you will need to pay a high fee for withdrawing money before the 2 month term deposit has reached maturity.
- You cannot increase the balance of a 2 month term deposit during the life of the term.
- Interest rates can rise in the future, but your 2 month interest rate will be locked.
Is a term deposit better than a savings account?
Term deposits are not better, but simply different. For people that are afraid to commit their assets for a fixed period of time and are interested in topping up the balance frequently, a savings account will be a better fit. For those looking for a safe investment with a guaranteed fixed interest rate return and will not need to access these funds for the fixed term, a term deposit is a good option.
How long is a term deposit?
Term deposits can be broken into two categories: short term and long term.
Short-term deposits can be as short as three weeks and up to one year. For short-term deposits, the bank will generally offer you a lower interest rate, but if you only need to invest money for a short period of time to save for something like a vacation, this can be a suitable option.
Long-term deposits are anything from a year upwards to five years. Generally, the longer the term deposit, the better interest rate you will be offered. This is a great option for those looking to invest in their future and can afford to not touch their money for a longer term. It is important to keep in mind that withdrawing funds from a term deposit early will result in steep penalties.
When is interest paid?
For short-term deposits, the interest will generally be paid once the deposit as matured. For long-term deposits, the interest rate will generally be paid annually.
Are 2 month term deposits taxable?
The interest earned from 2 month term deposits is considered income and under Australian law is taxable. You should declare the interest you receive in the year that you receive it and it will be taxed at the same marginal rate as your income.
What factors should I consider when choosing a term deposit?
- What is the interest rate?
- How often is the interest calculated?
- Is the interest compounded?
- Does this account have any associated fees?
- How long will the term length be?
- What is the penalty for withdrawing funds before maturity?
- Can you partially withdraw the funds without incurring a penalty?
- How often can you check the balance on the account?
- When the term deposit matures, what happens next?
How do I choose the right term deposit?
Term deposits come in a variety of amounts, term lengths, and interest rates. When choosing one, shopping around to find the best fit for your financial needs will be a key factor in success. That being said, here are four keys to keep in mind during the shopping process:
- How long can you invest your assets without needing to access them? The longer you can invest, the higher the return on your investment will be, but the longer you will have to wait to access those funds.
- Interest rate. Look for a competitive interest rate for your chosen term. Again, the longer the term, the higher the interest rate.
- The minimum amount. Term deposits will generally have a minimum amount required to open the account. Consider how much you are willing to invest.
- Financial goals. What are you hoping this term deposit will do for you? Assessing your goals for this term deposit will help you decide what is a good fit for your needs.
It is important to keep in mind that term deposit accounts should not have fees associated with them, including set up, annual, or ongoing fees. However, you should always check with the financial institution to ensure that this is the case. Some financial institutions might have fees or an investment minimum.
While there are no fees generally associated with a 2 month term deposit account, withdrawing your money before maturity will result in heavy penalties and should be avoided unless it is an emergency.
Do I need to give notice when withdraw funds early?
Yes, you are required to give a 31-day notice if you wish to withdraw your funds before your term deposit has reached maturity to relieve some stress on banks required to pay out before the term has ended. In some cases of extreme financial hardship, this notice can be waived.
Compare 100s of high interest term deposits
Did you know you can compare 100s of term deposits? Review the highest interest rates, calculate earnings and apply online. Compare term deposits on our main comparison page and find the best rates for your needs.
Compare and review 2 month term deposits
How to apply for 2 month term deposits?
If you’d like to apply online for a 2 month term deposit, just scroll up and click on “Learn more” to be taken to secure online application forms. Before you apply, be sure to learn about the lenders’ term deposit products, rates and eligibility criteria.
Give yourself around 20 minutes to complete the term deposit application.
You will also need:
- an Australian residential address
- Accepted ID such as drivers licence and passport
- You will also need a linked transaction account
- The minimum deposit amount
- Foreign tax residents will require a foreign tax number
Who can apply for a 2 month term deposit?
- You must be an Australian resident with an Australian residential and mailing address
- You must be at least 18 years or over
2 month term deposits calculator
Want to calculate how much you could potentially earn with your 2 month term deposit? Just use the filter to change your deposit amounts to calculate approximate earnings. Your potential earnings are calculated and displayed in the table.
Want to get the most of your savings? Read our savings tips for Australians.