RBA cash rate hikes a winner for term deposit holders

With interest rates the highest they've been since 2012, term deposits are back with a roar and proving to be one of the easiest and most secure ways for Aussies to get a decent return on their money.  Yet a large proportion of people (48%) have never heard of them, or if they have, ever considered getting one.

A recent Mozo survey* found that only 7% of people are currently a term deposit customer despite the fact that interest rates on term deposits can be almost 4 times higher than the average ongoing non-conditional rate of a savings account, which is currently sitting at a miserly 1.30%^.

Peter Marshall, Mozo’s banking expert, says that the idea that term deposits are an outdated savings option is completely false. He points out that many term deposits are less restrictive than high interest savings accounts, are easy to set up and manage 100% online and can be fine-tuned to meet your savings goals.

“One of the biggest added benefits of a term deposit is that you are guaranteed a fixed rate of return,” he said. “Savings account rates are variable and while this can work in your favour, there are often a lot of hoops to jump through if you want to get the maximum rate and this isn’t always easy. ” 

So if you are considering where to park your cash, it might be a good time to reconsider taking out a term deposit. Here are the Mozo money editor’s top picks for this month.

Top term deposits

Top savings accounts

Macquarie Savings Account
  • 5.35% p.a. for the first 4 months (4.75% p.a. ongoing)
  • Zero account keeping fees
  • Multiple Mozo Experts Choice Award Winner^

The award-winning Macquarie Savings Account offers a cracking intro rate of 5.35% p.a. for the first four months on balances up to $250K. The ongoing rate is a competitive 4.75% p.a. and there are zero account keeping fees. You'll need to open a Macquarie Transaction Account as a first step, but once that's done you can open as many linked Savings Accounts as you like using the Macquarie mobile banking app - one for each savings goal!

IMB Bank Reward Saver Account
  • 5.25% p.a. maximum interest rate for first 4 months
  • No monthly fees

IMB’s Reward Saver account is an accessible, simple, no frills savings account that is designed to help you save. You can grab up to 5.25% p.a. for the first four months from opening the account, after which as long as you make a monthly deposit of $50 or more and no withdrawals you’ll get an ongoing rate of 3.25% (T&Cs apply). What’s more, there are also no account keeping fees and the ability to access real time payments through Osko. Transaction fees may apply.

Compare other savings options available

Head to Mozo’s compare high interest savings accounts page, to see what other interest rates are out there.

*mozo survey: Mozo commissioned a nationally representative survey of 1012 Australians conducted by Researchify in February 2023 

^ Source: Mozo database 
Average ongoing unconditional savings rate of 1.30% compared to Judo Bank 5.10% p.a. 1 year term deposit rate. 23/08/23

* 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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