Lock in high interest with term deposits in April 2023

Interest rates are the highest they’ve been in over a decade but the sustained cycle of rising rates could be coming to an end. Now is an opportunistic time for savers looking to open term deposit accounts.

For the first time in a year, the Reserve Bank of Australia (RBA) paused its rate tightening efforts, holding the official cash rate at 3.60% in April 2023. Prior to this, the central bank had raised rates ten times since May 2022.

Disinflation may have encouraged the RBA’s decision. If this deceleration in inflation persists, then further hikes to the cash rate may not be necessary this year. There may even be interest rate cuts before 2024.

If you’re thinking of putting away a portion of your savings for an extended period, now may be the time to consider comparing a range of term deposit accounts and the different options that are available.

Although not all banks have increased their term deposit products in line with each interest rate rise, a number of banks are offering rates above 4.50% per cent, while one bank is offering 5% over a five-year term.

RateCity research shows that the big four banks’ highest term deposit rates were only between 0.2 - 0.3 per cent before the RBA hikes began in May. Now, the highest rates offered by the big four banks for term deposits are at least 4 per cent.

There is no single term deposit account as everyone’s needs are different. To get a better idea of which accounts may provide the most value for your money, you could consider comparing their Real Time Ratings™, to evaluate interest and flexibility scores.

Can you break a term deposit?

If you locked away a portion of your savings before the RBA began its extensive and intensive hiking sequence, you may be wondering if it’s possible to end a fixed term deposit early to nab a higher rate.

The answer is yes. However, you’ll have to pay break fees and you may also incur interest rate reductions. Additionally, receipt of payments will likely not be instant. It’s important to familiarise yourself with the potential costs of ending a fixed term early before you proceed.

Compare term deposits

Provider

Real Time Rating™Min depositInterest rateMaximum rate

$1,000

5.10%

for 6 months

5.10%

for 6 months

More details

Product info

Personal Term Deposit (At Maturity)

• 2024 Award Winner
• 6 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$1,000

4.75%

for 3 months

4.80%

for 12 months

More details

Product info

Term Deposits

• 3 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$1,000

5.00%

for 3 months

5.25%

for 6 months

More details

Product info

Term Deposits

• 3 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

$5,000

0.50%

for 1 month

5.00%

for 7 months

More details

Product info

Term Deposit

• 1 month
• Automatic maturity rollover
• Joint application available
• Interest payment to other institution

$5,000

4.70%

for 11 months

4.70%

for 11 months

Product info

Term Deposit Special

• 11 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by phone

$5,000

4.75%

for 12 months

4.75%

for 12 months

Product info

Special Term Deposit

• 12 months
• Automatic maturity rollover
• Joint application available
• Maturity alert by email

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