Term deposits August: More interest rate rises predicted

Two women stand smiling, looking at a mobile phone.

With the Reserve Bank keeping the cash rate at 0.10%, interest rates have had a little time to breathe.

At the end of 2020, Mozo counted nearly 800 term deposit interest rate cuts in just one month! Now with things a little steadier that number has reduced dramatically. Cuts to term deposits tracked in the Mozo database fell to 125 in June and 114 in July.* 

The scales start to tip

While cuts are decreasing, interest rate increases seem to be on the rise. In June nine providers listed in Mozo’s database increased 28 term deposit interest rates. In July those numbers rose to 15 providers and 49 term deposit interest rate increases.* 

It would seem that the scales are slowly beginning to tip for term deposits - from cuts to rises. If this trend continues, we can expect to see even more providers raising term deposit rates in August.

Some providers who increased term deposit interest rates in July were:

  • AMP Bank
  • Bank of Melbourne
  • Bank SA
  • Endeavour Mutual Bank
  • Firstmac
  • Judo Bank
  • The Mutual Bank
  • Newcastle Permanent 
  • Queensland Country Bank
  • Rabobank
  • Southern Cross Credit Union
  • Suncorp
  • St George
  • Sydney Mutual Bank
  • Westpac

Newcastle Permanent and Rabobank made some of the biggest term deposit interest rate increases. Both increased 5-year term deposits by 55 basis points!

Top term deposits right now

For months now Judo Bank has been taking out the top spots in the Mozo database for longer term deposits. It’s unlikely that that will change in August. Here are Judo Bank’s current competitive term deposit interest rates:

  • 1-year term deposit - 0.99% p.a.
  • 2-year term deposit - 1.20% p.a.
  • 3-year term deposit - 1.15% p.a.
  • 4-year term deposit - 1.40% p.a.
  • 5-year term deposit - 1.60% p.a.

BankVic still monopolises most of the top spots in the Mozo database for terms under one year. Although after its interest rate increases, AMP Bank now takes out the top spot in the Mozo database for 11-month terms. Its interest rate for that particular term is currently 0.75% p.a.

To summarise, things are looking up for term deposits. If you’re interested in this fairly low-risk investment, head to Mozo’s compare term deposits page to see what options are available. Or, alternatively take a look at the terms on offer below.

Compare term deposits - last updated 18 August 2022

Search promoted term deposits below or do a full Mozo database search . Advertiser disclosure
  • Mozo Expert Choice Badge
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.95% p.a.
    2 years
    $1,000
    Yes up to $250,000

    Great rates and incentives incl. 0.10% added loyalty bonus at renewal. Option to have interest paid to another bank. Winner of the Mozo Experts Choice Awards 2021^ for Term Deposits.

    Details
  • Mozo Expert Choice Badge
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.50% p.a.
    1 year
    $5,000
    Yes up to $250,000

    Competitive rates for one year term deposits. Start investing with as little as $5,000 to $1,000,000. For personal customers who want to invest above $500,000, or for non-personal customers, contact Challenger’s call centre to discuss account application options.

    Details
  • Hot Deal Earn a competitive rate of 3.24% half yearly or 3.25% annually on an 18 month term
    Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.10% p.a.
    1 year
    $5,000
    Yes up to $250,000

    Deposit of $5,000 up to $5 million. Choose a term from 1 month to 5 years. Select a range of convenient interest payment options. $0 establishment or ongoing fees. Easy tracking using the mobile banking app.

    Details
  • Mozo Expert Choice Badge
    Online Term Deposit
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.35% p.a.
    2 years
    $5,000
    Yes up to $250,000

    No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.

    Details
  • Boost Saver Account with The Lock Saver Feature
    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    3.10% p.a.
    1 month
    $0
    Yes up to $250,000

    Get all the perks of a term deposit but even more flexibility with the Virgin Money Boost Saver. Get up to 3.10%* variable interest when you switch on the Lock Saver Feature to lock your hard-earned savings away. Add money at any time, pay $0 fees and get access to your money with just 32 days’ notice*. Comes bundled with the everyday Virgin Money Go Account. (*Monthly criteria, T&Cs apply)

    Details

*Averages calculated using data available in the Mozo database, correct as of 30 July 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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