IF all things stay the same, the 5 year term deposit is a better return.
However, you have to consider what might change in the 5 years.
If the DIRT exemption is removed (back in 2008 I recall some politician saying the OAP exemption would be gone within 4 years) you would be taxed on the total interest when received in 5 years time. You don't know what that tax rate would be.
If the interest rate were to increase in the next few years your 5 year term would not look such a good bet.
Mind you, if interest rates continue to fall over the next 5 years, you would be patting yourself on the back.