Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

Business Term Deposits

Boost your business finances with a competitive interest rate on a term deposit account.


Fact checked
A strong financial position is crucial for any business, so it’s important to find a simple, risk-free way to help your business grow into the future. Business term deposits are often the perfect solution.

Providing the consistency and stability of a fixed interest rate, term deposits can ensure that your money works harder for you and that your business has the surplus cash required to fund future projects.

Business term deposits are a type of savings or investment account for businesses. They are very similar to personal term deposits, with the obvious difference that they can only be opened and held by business customers.

What are business term deposits?

With a term deposit you invest a sum of money for a set period of time, usually ranging from 30 days to five years. Your money is invested at a fixed rate of interest, providing guaranteed returns for the lifetime of the deposit. Interest on a business term deposit can be paid monthly, quarterly, six-monthly, annually or at maturity.

While your money is invested in a term deposit you are unable to access it without incurring substantial fees. This allows you to enjoy a higher rate of interest and also removes the temptation to dip into what is meant to be a savings account.

Once the deposit matures, you have the option to withdraw the funds to invest elsewhere or to provide extra cash flow for your business, or you can rollover the money into a new term deposit.

What are the pros and cons of business term deposits?

Before you decide whether a business term deposit is the right option for your business, consider the advantages and disadvantages of opening one of these accounts:

The pros

  • High interest rate. Business term deposits allow you to earn a high interest rate on your savings, which means that your money works harder for you and you can maximise cash flow for your business.
  • Steady and secure. Business term deposits are an extremely low-risk investment option. While there may be other investments that provide the potential for much higher returns, term deposits provide the promise of steady and consistent returns.
  • Protection against interest rate drops. Term deposits allow you to lock in your interest rate for the duration of the term, which means you won’t suffer if interest rates fall.
  • Choose your term. There’s a huge range of investment terms available on business term deposits, with time periods ranging from as little as 30 days through to as long as five years.

The cons

  • Can’t take advantage of rate rises. Although business term deposits offer protection against interest rate drops, conversely they also mean that you are unable to take advantage of any rate rises that occur while your funds are locked away.
  • Can’t access your funds. Banks make it prohibitively expensive to access funds in your term deposit. If your business experiences a short-term cash flow problem and you need urgent access to money, you may not be able to withdraw it.

How do I compare business term deposits?

It’s important to do a thorough comparison of accounts before deciding which business term deposit is right for you. Keep the following factors in mind when comparing business term deposits:

The interest rate

Compare the interest rates available to see which business term deposit allows you to grow your savings balance the most. Interest rates vary depending on the term you invest your funds for, so keep this in mind when comparing accounts.


Will you need to pay any fees for opening your term deposit account, or any ongoing account-keeping fees? Many business term deposits are available without any ongoing fees, so try to find one of these accounts if possible. It’s also worth checking whether you will be able to access your funds in an emergency, and if so, how much you will have to pay in fees.


Business term deposits are offered with an extensive range of investment terms, from as short as one month to as long as five years. When comparing accounts and interest rates, make sure you are comparing accounts that allow you to invest your funds for the same period of time.

Minimum balance

Most term deposits will require you to invest a minimum amount in order to open an account, for example, $5,000. Make sure you choose an account with a minimum deposit level suitable to your financial situation.

Foreign currency options

If your business regularly deals in more than one currency, check to see whether your bank offers foreign currency term deposits to help make it easier for you to manage your international finances.

When interest is paid

Check to see when each account pays interest: monthly, quarterly, half-yearly, annually or on the maturity of your deposit.

Loyalty bonuses

If you roll over your account balance into a new term deposit when it matures, some financial institutions will offer a loyalty bonus. This usually takes the form of a bonus interest rate that allows you to grow your business savings balance even further.

More guides on Finder

  • Kiwi Car Loans review

    Borrow up to $500,000 for your new vehicle, caravan, boat or motorcycle with a secured or unsecured finance from Kiwi Car Loans.

  • ScotPac business finance review

    Access business, trade or invoice finance for businesses of all sizes from ScotPac.

  • ASB Visa Business credit card

    Manage your cashflow and get comprehensive business expenditure reporting with the ASB Visa Business credit card.

  • BNZ Advantage Classic credit card

    If you already have a BNZ transactional account, you can earn Fly Buys Points or cash with the BNZ Advantage Classic credit card.

  • Flight Centre Mastercard

    Earn Flight Centre Rewards and take advantage of long term finance deals for big-ticket purchases at participating retailers.

  • The Lending People personal loan

    The Lending People matches your profile with its lending partners to find the right loan for your situation. Decisions in 60 seconds.

  • Sprint Finance car loan

    Borrow up to $50,000 for a new vehicle with the right lender for your personal circumstances.

  • ANZ Low Rate Visa

    With no annual card fee and a low-interest rate, an ANZ Low Rate Visa is worth considering if you want to save money.

  • Q Mastercard

    Find out how you can get zero interest and no repayments for 3 months on all purchases when you use your Q Mastercard.

  • Farmers Mastercard

    Collect Farmers Club Points anywhere you use your card and enjoy long term finance deals for those big-ticket purchases.

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use, Disclaimer & Privacy Policy.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site