Term deposits August: More interest rate rises predicted
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 29 March 2024
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Mozo experts choice awards won:
- Term Deposit - 2024
Term Deposit
4.75% p.a.
1 year$1,000
Yes up to $250,000
Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)
CompareCompareTerm Deposit
Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)
- interest rate
- 4.75% p.a.
- Minimum deposit
- $1,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $1,000.00
- Maximum deposit
- $2,000,000.00
- Can interest be paid to another bank?
- no
- Automatic rollover
- yes
Read our Mozo Review to learn more about the Rabobank Term Deposit
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Online Term Deposit
4.80% p.a.
1 year$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.
CompareCompareOnline Term Deposit
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.
- interest rate
- 4.80% p.a.
- Minimum deposit
- $5,000.00
- Govt Deposit Guarantee
- Yes up to $250,000
- Minimum deposit
- $5,000.00
- Maximum deposit
- $5,000,000.00
- Can interest be paid to another bank?
- yes
- Automatic rollover
- yes
Read our Mozo Review to learn more about the MyState Bank Online Term Deposit
Your selected term deposits
Your selected term deposits
*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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