What is a term deposit ladder?

A term deposit ladder splits your money across several term deposits that mature at staggered times — for example, $25,000 in each of four deposits, with one maturing every three months. It gives you the higher rates of term deposits while still getting regular access to a portion of your money, instead of locking it all away until one maturity date.

Why ladder term deposits instead of using one?

Two reasons: access and rate risk. With a ladder, a rung matures regularly, so you can take cash out or reinvest without breaking a deposit early (which usually means a penalty rate). And because you reinvest each maturing rung at the current rate, you're not locked into a single rate for the whole amount — handy when rates are moving.

Is interest on term deposits taxed?

Yes — term deposit interest is added to your taxable income and taxed at your marginal rate in the year it's earned (or credited). For a long deposit, interest is generally assessable when it's paid or credited, so check whether your deposit pays annually or at maturity, as it affects which year you're taxed.

Term Deposit Ladder Calculator

Get the rate of a term deposit without locking everything away. A ladder staggers your money across several deposits — see your rungs, how often one matures, and your interest.

Last verified: 5 May 2026

How does a term deposit ladder work?

Split your money across several deposits maturing at staggered times — so one matures regularly (access without penalty) and you reinvest at current rates (rate hedging). Source: ASIC MoneySmart.

Worked example. $100,000 in 4 rungs of $25,000 at 4.6% = a rung maturing every 3 months and about $4,600/year in interest — with quarterly access instead of waiting for one big maturity.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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