Are you looking for the best term deposit rates in Australia? Mozo compares interest rates on term deposits at 70 Australian banks, mutual societies and credit unions, helping you find the right account for your investment needs. With a wide range of products, you can be sure to find the perfect term deposit for your needs. The competition in the term deposit space is intensifying, as several banks have started offering competitive rates for shorter terms. 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.
This is good news for savers who want to invest their money safely. There are several term deposits that offer interest rates higher than '4'. Judo Bank and AMP Bank are the leaders in term deposits, 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.
Term deposits are a relatively low-risk investment option offered by many Australian banks, mutual societies and credit unions. They allow you to earn interest on a lump sum of money at a fixed interest rate over a fixed period of time, which 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.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.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.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 properties. There's usually no need to worry about setup or account management fees.To reach your savings goals with a simple savings account that offers a generous variable bonus rate if you meet certain criteria, read our Mozo review to learn more about NAB Reward Saver or Bank of Queensland Smart Saver account.For those aged 14-35 years old, read our Mozo review to learn more about MyState Bank Bonus Saver account or Virgin Money Boost Saver with Go Account bonus rate during the first 4 months from opening account.To earn bonus interest, read our Mozo review to learn more about NAB iSaver or Bank of Queensland Future Saver account.Scroll up to see what other term deposits are available in Australia right now, or check out Mozo Experts Choice Award winners for the best of the harvest.
