Are you looking for the best term deposit rates in Australia? Mozo can help you find the right account for your investment needs. We compare interest rates on term deposits at 70 Australian banks, mutual societies and credit unions, so you can make an informed decision. In this article, we'll explain what term deposits are, how to compare them, and which providers offer the best rates. A term deposit is a relatively low-risk investment option offered by many Australian banks, mutual societies and credit unions.
It allows you to earn interest on a lump sum of money at a fixed interest rate over a fixed period of time. This can be anywhere from one month to five years. When you deposit your money in a term deposit, you can usually choose to have interest paid monthly or when your term deposit is due. To find the term deposit that's right for you, you'll need to compare the range of available interest rates and carefully consider what length of the investment term will fit your financial needs.
This is important, as there are often penalties for withdrawing money early from a term deposit. You can use the Mozo chart above to compare the term deposits available in Australia right now. The table provides an overview of the key features you'll want to know before deciding which term deposit is right for you. The current average 12-month term deposit in our database is 2.79% p.a., and it's expected to continue to increase throughout the month, which is good news for savers who want to invest their money safely.
There were 446 increases in the Mozo database, and there are now several term deposits that offer interest rates higher than '4'. Amidst a sea of change, the leaders in term deposits are still Judo Bank and AMP Bank, especially in the long term, and both banks offer several terms starting with a “4”. Other providers offer similar rates if you want to compare. Scroll up to see what other term deposits are available in Australia right now, or to find the best of the harvest, check out the Mozo Experts Choice Award winners.When comparing term deposits, there are several factors to consider: what providers operate in your area; whether or not you're concerned about investing in a bank, investment bank, credit union, or online bank; and most importantly, interest rate.
The higher the interest rate, the higher your rate of return should be.Interest rates on term deposits are fixed, so no matter what happens in the market, the rate you set at the start of your investment will remain the same throughout the term. Interest for shorter terms is generally paid at maturity, while for longer terms it is usually paid annually. Some providers may also give you the option to have your interest paid monthly.The time you can invest your money can range from one month to five years, depending on what each financial institution offers. Most providers have a variety of shorter and longer terms to choose from.
Your provider should notify you when your deadline is coming to an end and will usually give you a number of options for what you can do when you reach maturity. These may include collecting your money, plus interest, or depositing it at another time frame.There is no Australian bank that offers the best term deposit rates in all investment terms. That's why it's important to compare term deposits according to your own individual circumstances. For example, a bank may offer a competitive interest rate for a one-year term, but the minimum deposit amount may be higher than the cash you have to invest, or you may not be looking for such a long term.Eliminate the temptation to draw on your savings and expenses since you can't access your money for the entire term (unless you request an early withdrawal).
It is a fairly low-risk investment compared to other investments such as stocks and stocks and properties. There's usually no need to worry about setup or account management fees.To make sure that you get the best return on your investment, use Mozo's comparison tool above to compare all available options and find out which provider offers the best rate for your chosen investment period.