Commonwealth Bank of Australia currently offers term deposit rates ranging from 3.10% per annum for three-month terms to 5.00% per annum for deposits held between 24 and 33 months on balances exceeding $50,000. These rates apply to personal term deposit products available through online banking or branch networks, reflecting adjustments made following recent Reserve Bank of Australia cash rate movements. Depositors can access a limited-time promotional rate of 4.90% per annum for 12-month terms, effective from late March 2026.
The bank structures its returns around term length and deposit size, with minimum investments starting at $5,000 and maximum online deposits capped at $5 million for individual customers. Interest payment frequencies vary by term, with shorter durations typically paying at maturity while longer terms offer annual distributions. All deposits remain fixed-rate instruments, locking in returns for the duration of the chosen term regardless of subsequent market fluctuations.
Understanding the current rate environment requires examining not only the headline figures but also the specific conditions governing eligibility, early withdrawal penalties, and comparative positioning against other major Australian banks. All data presented reflects official Commonwealth Bank documentation and independent financial comparisons current as of early April 2026.
What are the current CBA term deposit rates?
Commonwealth Bank publishes tiered rates based on both the investment term and the principal amount deposited. Current data indicates four critical benchmarks for prospective depositors evaluating fixed-term savings options.
5.00% p.a.
24-33 months ($50k+)
$5,000
Minimum deposit
FCS Protected
Up to $250,000
Early April 2026
Subject to change
Several distinct patterns emerge from the current rate card:
- The headline rate of 5.00% per annum applies specifically to terms between 24 and 33 months for balances exceeding $50,000
- A promotional offering of 4.90% per annum for 12-month terms became available from 27 March 2026
- Standard 12-month rates sit at 4.50% per annum across all balance tiers
- Short-term deposits of three to six months yield between 3.10% and 3.30% per annum
- Maximum online deposits for individual customers are capped at $5 million
- No account-keeping or establishment fees apply to standard personal term deposits
- Early access triggers penalty rates dropping to approximately 1.10% per annum for balances under $5 million
The following table details specific annual percentage rates by term and deposit size:
| Term Length | Rate ($5k–$49k) | Rate ($50k–$5m) | Interest Payment |
|---|---|---|---|
| 3 months | 3.10% p.a. | 3.15% p.a. | End of term |
| 6 months | 3.25% p.a. | 3.30% p.a. | End of term |
| 12 months (standard) | 4.50% p.a. | 4.50% p.a. | Annually |
| 12 months (promotional) | 4.90% p.a. | 4.90% p.a. | Annually |
| 24–33 months | 4.95% p.a. | 5.00% p.a. | Annually |
| 60 months | 3.95% p.a. | 4.00% p.a. | Annually |
Rates by term length
The yield curve demonstrates inverted characteristics typical of transitional monetary policy periods. Short-duration deposits of three and six months offer 3.10% and 3.25% respectively, reflecting the lower bound of current rate expectations. The 12-month segment presents two distinct tiers: the standard 4.50% rate and the limited-time 4.90% promotional offering available since late March 2026.
Maximum returns emerge in the medium-term bracket of 24 to 33 months, where rates peak at 5.00% for larger balances. Curiously, five-year terms retreat to 4.00% for substantial deposits, suggesting market expectations of rate reductions over the long horizon.
Fixed vs variable options
Commonwealth Bank offers exclusively fixed-rate term deposits across all advertised durations. Once established, the interest rate remains constant for the contract period, protecting depositors against cash rate reductions but preventing participation in upward movements. Official product documentation confirms no variable-rate term deposit facilities are currently marketed.
This fixed-rate structure contrasts with the bank’s savings account portfolio, where variable rates fluctuate with RBA policy adjustments. Depositors seeking rate security accept the trade-off of locked capital against guaranteed returns.
How do CBA term deposit rates compare to other banks?
Within the Big Four banking cohort, Commonwealth Bank maintains competitive positioning though not market leadership across all durations. Comparative analysis against National Australia Bank reveals subtle but significant divergences in rate strategy.
CBA vs major banks
Direct comparison with NAB illustrates Commonwealth Bank’s relative standing:
| Term | CBA Rate | NAB Rate |
|---|---|---|
| 6 months | 3.25–3.30% p.a. | 3.30% p.a. |
| 12 months | 4.50–4.90% p.a. | 5.00% p.a. |
| 24 months | 4.95% p.a. | 5.00% p.a. |
NAB consistently offers marginally higher rates for 12-month and 24-month terms, with a full 5.00% per annum available at the one-year mark compared to CBA’s standard 4.50%. However, CBA’s promotional 4.90% rate narrows this gap for new deposits initiated before the offer expires. Comparison data compiled by Finder indicates these spreads remain relatively tight across the major banking sector.
While CBA rates slightly trail NAB on shorter durations, the differential typically remains within 10 to 50 basis points. Non-bank deposit-taking institutions may offer rates exceeding 5.60% for comparable terms, though these fall outside the Big Four comparative framework.
Rate change frequency
Commonwealth Bank adjusts term deposit rates in response to Reserve Bank of Australia monetary policy announcements and wholesale funding market movements. Following two consecutive cash rate increases in early 2026, lifting the RBA rate from 3.60% to 4.10%, CBA implemented corresponding upward revisions to deposit offerings. Canstar analysis confirms the Big Four typically synchronise rate adjustments within weeks of official RBA determinations.
Historical patterns suggest deposit rates lag policy announcements by seven to fourteen days. The bank reserves absolute discretion to alter advertised rates without prior notification, though existing fixed-term contracts retain their original agreed yields.
What are the requirements to open a CBA term deposit?
Eligibility criteria centre on residency status, minimum capital thresholds, and distribution method. The bank maintains distinct parameters for online versus branch-established accounts.
Minimum deposit and eligibility
Standard term deposits require a minimum $5,000 opening balance for online applications, though specific product variants may permit $1,000 entry points according to printed investment documentation. Individual customers may deposit up to $5 million through digital channels, while self-managed superannuation funds face lower online caps of approximately $1.999 million.
Availability extends to Australian residents with verified identification. No establishment fees apply, and accounts may be opened via NetBank, the CommBank mobile application, or physical branch attendance. Current terms and conditions specify that existing customer relationships do not automatically confer preferential rates.
Early withdrawal penalties
Termination prior to maturity requires 31 days’ advance notice. Upon early access, interest recalculates at penalty rates significantly below the contracted yield. For balances under $5 million, early access rates approximate 1.10% per annum, effectively eliminating most earned interest depending on the elapsed term duration.
The bank applies these reductions retrospectively to the deposit period served, rather than merely withholding future accruals. This structure imposes substantial financial disincentives against premature liquidation.
How is interest calculated and taxed on CBA term deposits?
Understanding the mechanics of return computation and fiscal obligations enables accurate yield projection and compliance.
Interest calculation methods
CBA employs simple interest calculation for personal term deposits, computing earnings daily based on the nominal annual rate divided by 365 days. For a $10,000 deposit at 4.50% per annum over 12 months, gross interest totals approximately $450, paid annually or at maturity depending on term length.
Compounding does not occur automatically within the term structure. Reinvestment requires active instruction at maturity to capitalise earnings into subsequent deposit periods. Financial comparison sites note this simple interest approach is standard across Australian banking for fixed-term products.
Terms of 12 months or longer typically offer annual interest payments, while shorter durations pay only at maturity. This distinction affects cash flow planning for income-dependent investors.
Tax implications
Interest income constitutes assessable revenue taxed at the recipient’s marginal income tax rate. Commonwealth Bank reports interest earnings annually to the Australian Taxation Office and issues payment summaries to account holders. No withholding tax applies for Australian residents, though non-residents face distinct tax treatment under double taxation agreements.
Deposits are protected under the Financial Claims Scheme up to $250,000 per account holder per Authorised Deposit-taking Institution. This guarantee applies automatically without application, covering both principal and accrued interest in the unlikely event of institutional failure.
When did CBA last adjust term deposit rates?
Recent rate history reflects the Reserve Bank of Australia’s monetary policy trajectory through 2025 and early 2026.
- Throughout 2025: The RBA implemented three separate cash rate reductions, establishing a base rate of 3.60%.
- Early 2026: Two consecutive 25-basis-point increases raised the official cash rate to 4.10%.
- March 2026: Commonwealth Bank and other major institutions adjusted term deposit rates upward in response to tightening monetary conditions.
- 27 March 2026: CBA introduced the limited-time 4.90% per annum promotional rate for 12-month terms.
- April 2026: Current rate structure remains effective, though analysts project potential rate reductions to approximately 2.10% by 2027.
Historical deposit rate data confirms the correlation between official cash rate movements and retail term deposit offerings.
What is confirmed and what remains uncertain about CBA term deposit rates?
| Established Information | Uncertain or Variable Elements |
|---|---|
| Rates range 3.10% to 5.00% p.a. as of April 2026 | Future RBA cash rate movements beyond current 4.10% |
| Minimum deposit $5,000 for standard products | Exact penalty calculations for partial early withdrawal scenarios |
| FCS guarantee covers deposits to $250,000 | Duration of current 4.90% promotional offer availability |
| Fixed rates only; no variable options offered | Projected 2027 rate decline to 2.10% remains speculative |
| 31 days notice required for early access | Potential changes to maximum deposit limits for SMSF accounts |
Why do CBA term deposit rates fluctuate?
Term deposit pricing reflects a complex interplay between official monetary policy, wholesale funding costs, and competitive positioning. The François-Henri Pinault – Kering President Net Worth Family analysis of luxury sector investments illustrates how divergent asset classes respond to interest rate environments, with fixed deposits offering stability against volatile equity or alternative investment returns.
When the Reserve Bank adjusts the cash rate, funding costs across the banking sector shift immediately. Commonwealth Bank must balance depositor expectations against lending portfolio yields, resulting in the observed transmission mechanism where official rate increases flow through to term deposit products within weeks. Current elevated rates reflect the RBA’s inflation containment efforts implemented during early 2026.
Market projections suggesting declines to 2.10% by 2027 indicate expectations of monetary easing as inflationary pressures subside. Depositors locking in current 5.00% rates for 24-month terms effectively hedge against this anticipated downward trajectory.
Where does CBA term deposit rate data originate?
Rate information comes from multiple authoritative sources.
“Interest rates are subject to change without notice. Rates current as of date of publication.”
— Commonwealth Bank of Australia Product Disclosure Statements
Independent verification through Canstar’s comparative analysis and Finder’s Big Four tracking provides cross-referenced validation of advertised yields. These aggregators source rates directly from banking institutions daily.
What should depositors know about CBA term deposits?
Commonwealth Bank offers competitive fixed-rate term deposits peaking at 5.00% per annum for 24 to 33-month commitments, with accessible entry points at $5,000. While rates slightly trail NAB on specific durations, the promotional 4.90% twelve-month offering provides viable short-term yield. Depositors must weigh the security of guaranteed returns against liquidity constraints imposed by 31-day withdrawal notices and penalty interest structures. Those considering household budgeting alongside savings might also examine the Kmart Food Processor – Best Picks Prices Reviews for complementary financial management strategies.
Frequently Asked Questions
Is CBA term deposit protected by government guarantee?
Yes. Deposits up to $250,000 per account holder are protected under the Financial Claims Scheme (FCS) should the bank become unable to meet its obligations.
What taxes apply to CBA term deposit interest?
Interest is taxed as ordinary income at your marginal tax rate. The bank reports earnings to the ATO and provides annual payment summaries.
Which term length offers the highest CBA term deposit rate?
The 24 to 33-month term currently offers 5.00% per annum for balances exceeding $50,000, representing the highest available standard rate.
How can I calculate interest on my CBA term deposit?
Interest calculates daily using simple interest: Principal × Rate ÷ 365 × Days. A $10,000 deposit at 4.50% yields approximately $450 annually.
Does CBA charge fees to open a term deposit?
No establishment or account-keeping fees apply to standard personal term deposits. Early withdrawal penalties apply if accessing funds before maturity.
What is the maximum deposit for CBA term deposits?
Individual customers may deposit up to $5 million online. Higher amounts may require branch negotiation or institutional arrangements.
How often does CBA pay interest on term deposits?
Terms under 12 months pay interest at maturity. Terms of 12 months or longer offer annual interest payments or maturity payment options.
Ben Hughes covers culture, lifestyle and society across Australia for Australia Current.