Australia’s “big four” — Commonwealth Bank (CBA), Westpac, NAB, and ANZ — hold the majority of household deposits, and for many people they’re the first place they check for a term deposit. But is a big four bank actually your best option, rate-wise? Here’s how they stack up.

Why People Default to the Big Four

Familiarity and convenience are the main draws: if your everyday transaction account, home loan, or savings are already with one of these banks, opening a term deposit through the same login is simple. All four are well-capitalised, covered by the same $250,000 Financial Claims Scheme guarantee as every other bank, and have extensive branch and phone support networks.

How Their Rates Typically Compare

Based on our research, the big four regularly run competitive 12-month special offer rates — this is the term they compete hardest on, since it’s the term most consumers search for and compare. Outside that headline 12-month rate, their standard rates for shorter terms (3-6 months) and longer terms (3-5 years) tend to be less aggressive than what challenger banks and regional banks offer.

Current rates for each:

Because these change frequently and some of the figures we could confirm were limited to headline terms, check each bank’s page above (and the official source link on it) for the exact current number before comparing.

What the Big Four Don’t Always Win On

  • Minimum deposit — some big four term deposits require $5,000 to open, while several regional and online banks accept $1,000.
  • Rate competitiveness on non-headline terms — 3-month, 6-month, and 3-5 year rates from the big four are frequently a full percentage point or more below the best available from smaller banks.
  • Special conditions — the highest advertised big four rate is often a promotional rate for new money only, not available on renewals or existing balances.

When a Big Four Bank Still Makes Sense

  • You want a single login across all your banking products.
  • You value having a physical branch network for support.
  • The specific term you want happens to be their current promotional rate — check before assuming it isn’t.
  • You’re depositing a large amount and want to split funds for Financial Claims Scheme coverage anyway, so using your existing bank for part of it is convenient.

When to Look Elsewhere

If you’re optimising purely for the highest rate on a specific term, it’s worth checking Judo Bank, ING, Suncorp, Rabobank, and other options via our full bank directory or the comparison table — in our research these consistently matched or beat the big four on several terms.

Bottom Line

The big four are a safe, convenient default, and their 12-month special offers are often genuinely competitive. But don’t assume “big bank” means “best rate” across every term — a five-minute comparison against the wider market can be worth a meaningfully higher return, especially on longer terms.