An SMSF term deposit locks fund cash into a fixed rate for a set term. It works the same as a personal term deposit, but it’s opened in the fund’s name. Right now, Judo Bank pays up to 5.35% per annum for 12 months. CommBank advertises up to 5.15% with its SMSF online bonus rate — a rate that doesn’t show up on most comparison tables. Here’s what’s actually available, plus the account-opening step that catches most first-time trustees.
Quick Answer: SMSF Term Deposit Rates
As at 20 August 2026, Judo Bank offers the highest advertised rate in this comparison: 5.35% per annum for 12 months, paid at maturity. CommBank pays up to 5.15% per annum for 12 months, but only through its SMSF-exclusive online bonus rate. Its base rate is lower, and that base rate is the figure most comparison tables show. Before opening a term deposit, an SMSF generally needs a transaction or cash account already open in the fund’s name.
Current SMSF Term Deposit Rates by Provider
Sourced directly from each provider’s own SMSF term deposit page, current as at 20 August 2026:
| Provider | 6-month rate | 12-month rate | Minimum deposit |
|---|---|---|---|
| Judo Bank | 4.95% p.a. | 5.35% p.a. | Not specified on official page |
| CommBank (online bonus) | 5.00% p.a. | 5.15% p.a. | $5,000 |
| CommBank (base rate) | 3.50% p.a. | 3.70% p.a. | $5,000 |
Judo Bank’s rates run from 1 month out to 5 years. Interest can be paid at maturity, monthly, or annually, depending on the term you pick. CommBank caps standard SMSF term deposits at $5,000,000. Anything larger has to go through a branch.
The CommBank Rate Most Comparison Sites Miss
CommBank advertises two different SMSF term deposit rates on its own site. There’s a base rate, and a higher “online bonus” rate for SMSF-exclusive online applications. As at 20 August 2026, that bonus pushes the 6-month rate to 5.00% and the 12-month rate to 5.15%. That’s well above the 3.50-3.70% base rate that shows up on general comparison tables. If you compare providers using only a third-party site, you could be looking at a rate roughly 1.5 percentage points too low. Always check a provider’s own SMSF page directly before you rule it out on rate alone.
Term Deposit or Cash Hub Account? Don’t Compare the Wrong Thing
Some comparison pages blend SMSF term deposits together with at-call SMSF cash-hub or cash-management accounts into one “average rate.” That average can look far lower than any real term deposit on the market, because at-call cash accounts pay considerably less. These are different products. A term deposit locks the funds in for a set term at a fixed rate. A cash-hub account is at-call and usually pays a lower, variable rate in exchange for flexibility. If a comparison shows an SMSF rate under 2%, check whether it’s actually describing a cash account, not a term deposit, before you assume term deposit rates have dropped that far.
Before You Apply: The Account Most Trustees Don’t Expect
Most providers won’t let an SMSF open a term deposit as its first product. CommBank, for example, requires an existing SMSF cash management account — a Commonwealth Direct Investment Account is one example. That account needs to already be open in the fund’s name before a term deposit application can go ahead. Judo Bank asks for a nominated external bank account already held by the SMSF. If you’re setting up SMSF banking for the first time, budget time to open a transaction or cash account first, then apply for the term deposit. Trying to do both at once is the most common hold-up trustees run into.
Trustee Eligibility
Providers generally accept either structure: individual trustees or a corporate trustee. Judo Bank requires one corporate trustee, or between two and four individual trustees. Each trustee or director typically needs to be an Australian tax resident aged 18 or over. They’ll each need their own mobile number and email address for identity checks. The fund also needs a valid ABN and TFN. Without a TFN or a valid exemption, providers will generally withhold tax on the interest earned.
Is an SMSF Term Deposit Right for Your Fund’s Cash?
A term deposit suits SMSF cash you know you won’t need before the term ends. It locks in a fixed, predictable return. At 5%+ for a 12-month term with a well-priced provider, that’s a genuinely competitive result against other conservative options. It’s less suited to cash your fund might need at short notice, since breaking a term deposit early usually costs you a chunk of the interest. If your fund needs some liquidity, it’s worth discussing a split between an at-call account and a term deposit with your SMSF’s accountant or adviser, rather than locking everything into one term.
FAQ: SMSF Term Deposits
What is the best SMSF term deposit rate right now?
As at 20 August 2026, Judo Bank’s 12-month rate of 5.35% per annum is the highest in this comparison, with CommBank close behind at 5.15% through its online bonus rate.
Do I need an existing SMSF bank account before opening a term deposit?
In most cases, yes. CommBank requires an existing SMSF cash management account first. Judo Bank asks for a nominated external SMSF bank account as part of the application. Set this up before you apply for the term deposit itself.
Can an SMSF term deposit be opened with individual trustees, or does it need a corporate trustee?
Both structures are generally accepted. Judo Bank, for example, accepts one corporate trustee or two to four individual trustees.
Is SMSF term deposit interest taxed differently to a personal term deposit?
The interest is assessable income to the fund. It’s taxed at the fund’s own tax rate, not the trustee’s personal rate. This is general information, not personal tax advice — check with your SMSF’s accountant for your fund’s specific situation.
Is an SMSF term deposit rate the same as an SMSF cash-hub or cash-management account rate?
No. Term deposits are fixed-term, fixed-rate products. Cash-hub or cash-management accounts are at-call and usually pay a lower rate for the flexibility. Comparing the two directly can make term deposit returns look worse than they are.
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