April term deposits: Judo & Firstmac increase rates amid cuts
Despite the Reserve Bank having made no further cuts to the cash rate this year, interest rates for term deposits are still very much on a downward spiral.
In March our research team counted cuts to term deposits from 32 providers in the Mozo database. On top of that the average interest rate for a $25,000 deposit for a 1-year term fell from 0.56% p.a. to 0.53% p.a.* Interestingly though, there were also some slight increases from a few banks.
Judo Bank & Firstmac increase rates
Going against the grain amidst a slew of cuts, Judo Bank and Firstmac actually increased term deposit interest rates in March. In fact, Firstmac increased some rates by as much as 55 basis points!
Goldfields Money also shook things up a bit by increasing some rates, while at the same time decreasing others. While upping the interest rate for three, six, nine month and one year terms by as much as 40 basis points, it also lowered rates for its four and five month and two year terms by between 15 and 20 basis points.
Staying on top of the game
Speaking of Judo Bank, it is still firmly holding the top spots for a number of term deposits in the Mozo database.* These include for three, six, nine month and one, two, three, four and five year terms. It mostly shares the limelight with BankVic, which currently offers the most competitive rates in the Mozo database for four, five, seven, eight, ten and eleven month terms.
Here’s a quick summary of the term deposits these two banks have to offer.
Judo Bank Term Deposit
- 1.20% p.a. interest rate for 2-year terms
- 0.10% loyalty bonus available (conditions apply)
With a number of competitive interest rates on offer, Judo Bank’s term deposits may be worth considering if you’re looking to lock away a substantial amount of money. Interest rates on offer range from 0.98% p.a. for three month terms to 1.20% p.a. for two and five year terms. You can deposit from as little as $1,000 to as much as $1 million. Interest for the rates quoted is paid at maturity. Finally, you could bag yourself an extra 0.10% p.a. on top of the standard rate, should you choose to reinvest it in another Judo Bank term deposit once your current one matures.
BankVic Term Deposit
If member-owned banks appeal to you and you’re looking for a decent term deposit interest rate, you might be interested in BankVic. A B Corp certified bank, BankVic’s term deposit interest rates currently range from 0.85% p.a. to 1.05% p.a. You can deposit from as little as $5,000 to as much as $100,000 and terms range from three months to five years.
Not too keen on either of these? Head to Mozo’s compare term deposits page for more options. Here you can search all 86 term deposits in our database and sort by the amount you wish to deposit, the length of term you’re looking at and where you live.
*Averages and interest rates taken from information available in the Mozo database, correct as of 31 March 2021.
* Different interest rates apply to different amounts or different interest payment frequencies.
^See information about the Mozo Experts Choice Term Deposit Awards
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