What is the Highest Term Deposit Rate in Australia?

Are you looking for a safe and secure way to save your money and earn a good return? A term deposit may be the right choice for you. Term deposits are fixed-term investments that offer a fixed rate of return for a set period of time. They are a low-risk investment option, backed by the government guarantee, and can provide a steady stream of income. In Australia, the highest term deposit rate is currently offered by G&C Mutual Bank, at 135 basis points over the past week.

A term deposit is a type of savings account where you deposit a lump sum of money with a financial institution for a fixed term in exchange for a fixed interest rate. The term deposit “term” is the fixed amount of time during which your money is deposited with that financial institution. Generally, the longer the term, the higher the interest rate. Banks offer term deposits of up to seven years, but five is most commonly the longest term offered to the general public.

The rise in the cash rate in July spurred increased activity in term deposits, with a bank raising rates to 200 basis points. A special term deposit rate is usually slightly higher than most other term deposits and can generally only be obtained by those who meet certain requirements. When your funds are in the withholding mechanism, they are renewed at a fixed interest rate every seven days until you give instructions for an agreed fixed term of one month or more. You can give instructions at any time, once you decide what you want to do.

If you reinvest on a day that is not an interest payment date, the new term will start from the last interest payment date. If funds are withdrawn before the next interest payment date, no interest is paid on funds deposited in the withholding system during the current seven-day interest period.If your fixed-term deposit remains in the holding center for more than 26 weeks, it will automatically renew as a 1-month rolling term deposit at the then-announced exchange rate. The fixed rate of return means that you'll always know how much your investment is worth and you can plan how to use your profits.No, with most term deposits, you cannot add money to them during the fixed term. Mutual banks highlighted a week of movement in term deposits, and G&C Mutual Bank now offers one of the highest 12-month deposit rates in the market.Term deposits can be a practical alternative to savings accounts to earn interest on leftover cash, but automatic renewal may leave your money behind.

Banks are pushing rates north with longer-term deposits, and rates rose to 135 basis points over the past week.You can open a new term deposit with this special offer online through NetBank and the CommBank app, or visit your nearest branch. Business customers should contact their relationship manager or visit their nearest branch to open a new term deposit with this special offer. There are no establishment or establishment fees.View all term deposit rates (PDF) and manage your term deposit on NetBank. Sign up and we'll send you an email, SMS, or a notification at NetBank before your term deposit expires so you can let us know if you want to flip it, remove it or make a combination of both.The target market for this product can be found in the Determination of the target market for the product available here.

The interest rates offered may change at any time without notice.CommBank recognizes traditional land owners across Australia as the continuous guardians of country and culture and pays respect to First Nations peoples and their elders, past and present.

Liam Anderson
Liam Anderson

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