Term deposits August: More interest rate rises predicted

By Tara McCabe ·
Fact Checked
Advertiser disclosure
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 - rates updated daily

Search promoted term deposits below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Term Deposit

    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    0.75% p.a.
    6 months
    $1,000
    Yes up to $250,000

    Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly (Terms and Conditions apply)

    Go to site
    Details
  • placeholder
    Term Deposit

    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    0.50% p.a.
    3 months
    $10,000
    Yes up to $250,000

    $0 Set up and no ongoing account-keeping fees. Interest rate depends on balance amount. Optional 3,6,9 or 12 month terms. Balances from $10,000.

    Go to site
    Details
  • placeholder
    Personal Term Deposit

    interest rate
    Minimum deposit
    Govt Deposit Guarantee
    1.00% p.a.
    2 years
    $5,000
    Yes up to $250,000

    Competitive rates and fast online application. Start investing with as little as $5,000 with no account keeping or set up fees.

    Go to site
    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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