I highly recommend trying out iTerm2. It's very similar to the native Terminal application that comes with Mac OSX, but it has some nice features that can accelerate your workflow, making you more productive.

While you're at it, you might want to consider installing Oh My Zsh as well. It is a tiny framework for managing your ZSH configuration. It basically enhances your terminal by providing you with handy plugins, themes and nice tools. From their Github Repository:

Oh My Zsh is a way of life! Once installed, your terminal prompt will become the talk of the town or your money back! Each time you interact with your command prompt, you'll be able to take advantage of the hundreds of bundled plugins and pretty themes. Strangers will come up to you in cafés and ask you, "that is amazing. are you some sort of genius?" Finally, you'll begin to get the sort of attention that you always felt that you deserved. ...or maybe you'll just use the time that you saved to start flossing more often.

The combination of iTerm2 and Oh My Zsh is very nice. I use it on a daily basis and I recommend you to try it out yourself!

I do things on different computers and platforms (mac, windows, linux) so I've pushed my customisations into the bash layer more than the terminal apps. To more directly answer your question - actually I just use Terminal on OSX.

The main niggle I have with OSX Terminal is that it runs Bash v3 and not v4 (and Apple advised on a support ticket there were no plans to change that in the foreseeable future); and iTerm also runs v3 at least out of the box. It's not a massive issue but it does occasionally bite me writing shell scripts.

If you're really unsatisfied with Terminal you should probably consider alternative shells (like zsh, csh, fish, etc) as well as alternative terminal apps.

The upside of deeply customising your workstation's terminal+shell is you can tweak to the absolute nth degree and access really powerful (non-standard) shell features beyond the stock set available in bash.

The upside of sticking to bash is it's the currently the de facto standard, so when you encounter a new system things will probably be familiar. Bash is the default shell for...

• OSX Terminal
• a lot of Linux distros (definitely not all; but all that I've personally encountered including common Raspberry Pis distros and tilde.club alternatives)
• Cygwin
• Git Bash
• Windows 10's incoming Bash-on-Ubuntu-on-Windows (you can see some discussion around enabling other shells in future on the msdn blog).

All of that said - and I appreciate it's a lot ;) - I am not at all saying that you shouldn't use iTerm or try alternative shells. I just don't have enough pain points with default bash to outweigh the convenience of consistency across systems.

I've never wrestled with OSX terminals but lately I had to switch to pterm (a version of putty stripped down to be just a terminal without all the dialer stuff) on linux because everything else is either way too primitive, or uses libvte2, which does not implement some VT escape codes crucial to working on various network gear. I'd imagine since putty can be built using macports that pterm could be as well. Kinda sad that the most competent linux emulator now hales from a Windows port.