When you are in the market for a term deposit, you'll obviously want to ensure you get the top interest rates available on the market, so as to maximise your final balance. And by comparing term deposit rates online to find the best option for your situation, you may earn tens or even hundreds of dollars in extra interest than by opting for the market average rate.
While many Australian investors have looked to the major banks for term deposit rates in the past, in early 2011 more people turned to smaller financial institutions for top interest rates.
This is because many of the smaller institutions ramped up the level of competition in the term deposit market, adding pressure to the big four banks to up their interest rates, and lure new customers.
What's in it for the banks?
It's in the banks best interest to increase interest rates on their term deposit accounts, particularly during periods of a tight economy. The greater the funds under management, the less banks need to rely on the often expensive wholesale money market.
This was particularly evident following the 2011 natural disasters – Cyclone Yasi and the January floods – in Queensland. Some banks prepared for hits to their profits and many looked to up funds under management via term deposits as a result.
Customers to cash in
At the time, some customers benefited from the top interest rates by comparing term deposits online at comparison sites such as RateCity. You too can compare top interest rates online to ensure you're getting the best deal in the market.
The table below displays some of today's highest interest rates for 90 day term deposits.