Why large cash amounts get noticed at the border
Amounts of A$10,000 or more, in any currency combined, must be declared to AUSTRAC before customs[6] — and that is only the declaration rule. Cash is also a bad way to hold a large sum even for a short trip: it earns nothing while it sits, and it is poorly insured in transit — airlines cap checked-bag claims at a few thousand dollars, and most travel policies pay out only a few hundred for cash. A bank deposit solves both at once.
What “government-protected” actually means
Australia’s Financial Claims Scheme (FCS), administered by APRA, protects deposits at an authorised deposit-taking institution (ADI — a bank, building society or credit union) up to A$250,000 per account holder, per ADI. That is a real, current, government-set limit — not an estimate and not unlimited[1].
What this does not mean. The scheme does not make deposits risk-free in every sense, and it is capped per institution: A$300,000 split across two different banks sits entirely within the scheme’s A$250,000-per-bank limit; A$300,000 in one bank has A$50,000 sitting outside it. If a sum is large enough, splitting it across more than one ADI is the direct way to stay under the limit everywhere, not a loophole.
Five term deposits, rates read directly from each provider
12-month rate, read on October 2026. Rates move with the cash rate and change without notice — check the provider’s own page before opening anything. Dialmark may receive a referral payment if you open an account through a link below; this does not affect the rates shown, which come from each provider’s own published page.
| Community First Bank | 5.60% p.a. · customer-owned bank · from A$10,000[2] |
|---|---|
| Judo Bank | 5.55% p.a. · ASX-listed challenger bank · from A$1,000[3] |
| Macquarie Bank | 5.35% p.a. · ASX-listed · established online term deposit[4] |
| Commonwealth Bank | 5.30% p.a. · Big 4, special offer rate · A$5,000–A$5,000,000[5] |
| ING | 5.30% p.a. (11-month term) · foreign-owned, online-only bank[4] |
Worth noticing
The 0.30-point gap between the top and bottom rate above is smaller than it looks
- On A$200,000 over 12 months, 5.60% vs. 5.30% is roughly A$600 in interest — real money, but not large enough to be the only reason to pick a provider you’ve never heard of over one you have.
- All five above are FCS-protected ADIs up to the same A$250,000 limit per account holder — the rate differs, the government guarantee does not.
Four things to check before locking any sum away
- Confirm the rate is still current. Every figure above is what the provider published on October 2026; term deposit rates move with the cash rate, sometimes within days.
- Check what happens if you need the money early. Most term deposits charge an interest penalty or require notice for early withdrawal — read that clause before you commit, not after.
- Split a large sum across more than one ADI if it’s close to or above A$250,000. See the splitting example in section B above for why.
- Check interest-payment frequency against your own plans. Some pay annually, some at maturity, some monthly — it changes the actual cash flow, not just the headline rate.
Three questions before you move a large sum
Is the FCS guarantee the same as zero risk?
- No. It is a government compensation scheme with a published cap (A$250,000 per account holder per ADI), not a blanket promise that deposits carry no risk at all.
Does breaking a term deposit early lose all the interest?
- Usually not all of it, but most providers apply a reduction or a notice period — the exact terms are specific to each bank and each product, not standardised.
A third question worth asking directly: who holds the licence? “Bank” in a brand name isn’t proof of ADI status — APRA’s public register is the one place to check before opening anything with an unfamiliar name.
How this comparison works
Dialmark is not a bank, does not hold deposits, and is not a credit provider. It may receive a referral payment from some of the providers above if you open an account through a link on this page, which does not change the rates shown — these are published figures, read directly from each institution, for comparison only.
This is general information only and does not take into account your personal circumstances. Consider seeking independent financial advice before opening a term deposit.
About this page. Dialmark is published by TwoTwoSix Pty Ltd (ABN 42 608 482 506). It is not connected to Community First Bank, Judo Bank, Macquarie Bank, Commonwealth Bank or ING. See about Dialmark.
Sources
6 sources
- APRA, Financial Claims Scheme: the A$250,000 per account holder, per ADI protection limit.
- InfoChoice / termdeposit.market, term deposit rate comparison: Community First Bank 12-month rate and minimum deposit.
- Judo Bank, Personal Term Deposit rates: 12-month rate, published directly by the provider.
- termdeposit.market, Term deposit rates by bank: Macquarie Bank and ING 12-month figures, ranked 20 October 2026.
- Commonwealth Bank, Term Deposits: 12-month special offer rate and deposit range.
- AUSTRAC, Moving money overseas: the A$10,000 cash declaration threshold referenced in section A.
Rates change. The pages above were read on October 2026; confirm the current rate before opening a term deposit.