Why now could be the right time to lock in a term deposit

If you’ve got some savings that you want to put aside for a rainy day, now might be a good time to consider a term deposit.

There’s talk that the RBA might reduce rates again in the second half of 2024, and in recent months we’ve seen a range of banks reduce term deposit rates on longer terms. Right now though, according to the Mozo database the best interest rates for 6 month, 9 month and 1 year term deposits are all above 4.75% p.a. 

While there are some savings accounts with bonus rates similar, often there are a lot of hoops to jump through to get the maximum rate. 

Peter Marshall, Mozo’s banking expert says that, “One of the biggest added benefits of a term deposit is that you are guaranteed a fixed rate of return. 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.” 

He also 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 with terms ranging from as little as 3 months to 5 years.

So if you think now is the right time for you to take out a term deposit, see our editor’s round-up of some of the top deals for this month.

Compare term deposits below

Judo Bank Term Deposit
  • 5.25% p.a. for a 1 year term, plus 0.10% loyalty bonus on roll-overs
  • 5.25% p.a. for a 9 month term
  • 5.25% p.a. for a 6 month term

Judo Bank offers some of the highest term deposit rates in the Mozo database, across a range of term options between three months and five years. Interest can be paid out annually or when the term deposit hits maturity (there’s also a monthly option with a slightly lower interest rate). Judo Bank also lets savers have their interest paid to another bank and offers a 0.10% interest rate bonus on rollovers once your deposit reaches maturity.

Rabobank Term Deposit
  • 5.00% p.a. for a 1 year term
  • 4.90% p.a. for a 9 month term
  • 5.00% p.a. for a 6 month term

This award-winning Term Deposit^ offers interest rates as high as 5.00% p.a. on 1-year term (when interest is paid annually). Rabo offers terms starting from one month up to 5 years with a minimum deposit of $1,000 and a max of $2,000,000. Sadly, your interest can’t be paid to another bank, but if you opt for an automatic rollover, you automatically get a 0.10% p.a. loyalty interest rate bonus.

Bankwest Term Deposit
  • 4.75% p.a. for a 1 year term
  • 4.80% p.a. for a 9 month term
  • 4.25% p.a. for a 6 month term
Find out more

With the Bankwest term deposit you can begin investing with as little as $1,000 up to $5 million. There are a range of investment terms available from 1 month to 5 years, but its most competitive rate is currently 4.80% p.a for a 9 month term paid at maturity. There are no account fees but you’ll need to set up a linked account which can be with Bankwest or another financial institution. At the end of the investment term, you’ll get a 7 day grace period to decide whether you want to reinvest or withdraw your funds.

MyState Bank Online Term Deposit
  • 5.00% p.a. for a 1 year term
  • 4.85% p.a. for a 9 month term
  • 4.70% p.a. for a 10 month term

MyState Bank offers a range of terms from 3 to 36 months. Its best rate is currently 5.00% for 12 months but also has an option for 4.85% for 9 months. There are no set-up or account keeping fees and deposits up to $250K are guaranteed by the Australian Government. This online term deposit is easy to set up and manage online, just be aware that there's also a minimum $5,000 deposit but you can lock away as much as $5 million.

Compare more savings options

Head to Mozo’s high interest savings accounts page to see what other interest rates are available.

* 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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