Compare thousands of loans to find one that works for you. Comparison of term deposits Compare one-year term deposits While some banks offer term deposits of up to seven years, five is most commonly the longest term offered to the general public. Longer-term term deposits require you to keep your money longer without necessarily offering much higher rates, although our term deposit comparison tables show that there are still some high long-term deposit rates available if you know where to look. A common example of how banks lower your interest rate if you decide to withdraw money from an early-term deposit.
However, the most important thing about a term deposit is to get a good rate, something that is increasingly difficult to find. Our list of the highest term deposit rates is a good starting point. In all terms at the time of writing, the average interest rate on term deposits is only 0.30% p.a in large banks and around 0.43% p.a in the entire market (as in savings accounts). Get a competitive interest rate plus additional interest when you transfer your deposit to a new term deposit.
Term deposit rates are generally quite low right now, and there are some higher interest rates available on savings account products that may offer more flexibility. Since the current inflation rate is 1.10%, many of these one-year term deposit rates will give you little real returns (3% real adjustment for inflation), so funds in a term deposit with an interest rate below the inflation rate can be considered to be declining in value. Term deposits are available at most banks for terms of up to five (and sometimes seven) years, which is a long time to keep your money. As the name suggests, a 12-month term deposit is a fixed deposit that locks your money for one year, which is the period of time known as the term.
The cash rate is the basic interest rate that banks charge each other on loans to manage their daily cash needs; a low cash rate means that it is cheaper for banks to borrow from each other and from the RBA, which translates into lower interest rates overall. The table below shows a snapshot of some of the highest interest rates for five-year term deposits. When providers can lower interest rates on savings accounts at will or offer a higher rate for a limited period of time, interest rates on term deposits remain fixed throughout the term. When banks raise their mortgage rates, they often increase their savings and fixed-term deposit rates as well.
The Reserve Bank of Australia (RBA) cash rate is one of the factors banks consider when setting their interest rates for deposit products. A term deposit is a type of savings account that you can open for a certain period of time, from 1 month to 5 years. Because of their relative security (and other external factors, which we'll discuss later), savings accounts and term deposits don't offer as fruitful returns as before. If you made a five-year term deposit a few years ago, you're likely to continue to earn an interest rate higher than 3% or even 4% p.
The online bonus rate will be included in the bonus rate shown when you open or renew your term deposit. A term deposit allows you to keep your money for a certain period of time at a guaranteed interest rate, while a savings account gives you access to your money at any time, but has an interest rate that can change. The online bonus rate will automatically be applied to your term deposit rate when you open or renew online. .
