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Australia’s best term deposits for June 2020

Australia’s best term deposits for June 2020

Having cash stashed in the bank can feel reassuring in these tough economic times.

If you’re a saver who’s built a kitty over a considerable amount of time, you may be looking to protect your precious savings during the recession.

One option is to consider term deposit accounts, which generally provide secure returns on a lump sum over a set period.

The downside to term deposits is that you’ll typically be penalised for accessing your funds during the term deposit period. So, if you were to lose your job or if you urgently needed to use your money while it’s still tied to your term deposit, the bank will likely charge you a break fee to end your term deposit early and take the funds out.

You may also not be able to pocket the full interest you’d be eligible for had you not withdrawn your term deposit. It’s always a good idea to understand a term deposit’s break fees, interest reductions and other terms and conditions before committing to the product.

Another drawback to term deposits is that interest rates have been in decline in recent times, with 87 banks and credit unions cutting interest rates across some 3,600 term deposits in the past three months, a RateCity analysis found.

The average rate for a one-year term deposit has decreased by 0.85 per cent in the past 12 months.

And if you thought a longer term deposit might nab you a higher rate, think again. The average rates for three-year and five-year term deposit fell by 0.94 per cent and 0.92 per cent respectively in the past 12 months.

If you’ve considered the pros and cons of term deposits and would still prefer to avoid risky investments, RateCity has put together some of the top-rated term deposits for June 2020, based on RateCity’s Real Time Ratings.

(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)

Best one-year term deposits

Company
Product

Personal Term Deposit (At Maturity)

Real Time Rating™

4.48

/ 5

Winner of Best Term Deposit 6 Month 50k, RateCity Gold Awards 2022

Max rate

4.00

% p.a

for 60 months

Min. deposit

$1,000

Interest rate

1.85

% p.a

for 6 months

Real Time Rating™

4.48

/ 5
Go to site

special

Receive a loyalty bonus

Winner of Best Term Deposit 6 Month 50k, RateCity Gold Awards 2022

Company
Product

Term Deposit (At Maturity)

Real Time Rating™

3.77

/ 5
Max rate

2.00

% p.a

for 12 months

Min. deposit

$5,000

Interest rate

1.10

% p.a

for 6 months

Real Time Rating™

3.77

/ 5
Go to site
Company
Product

Term Deposit

Real Time Rating™

4.48

/ 5
Max rate

2.75

% p.a

for 24 months

Min. deposit

$5,000

Interest rate

1.95

% p.a

for 6 months

Real Time Rating™

4.48

/ 5
Go to site
Company
Product

Term Deposit

Real Time Rating™

4.24

/ 5
Max rate

2.60

% p.a

for 60 months

Min. deposit

$1,000

Interest rate

1.55

% p.a

for 6 months

Real Time Rating™

4.24

/ 5
Go to site
Company
Product

Term Deposit

Real Time Rating™

3.56

/ 5
Max rate

1.75

% p.a

for 36 months

Min. deposit

$10,000

Interest rate

0.90

% p.a

for 6 months

Real Time Rating™

3.56

/ 5
Go to site

Read more...

Best three-year term deposits

Company
Product

Personal Term Deposit (At Maturity)

Real Time Rating™

4.48

/ 5

Winner of Best Term Deposit 6 Month 50k, RateCity Gold Awards 2022

Max rate

4.00

% p.a

for 60 months

Min. deposit

$1,000

Interest rate

1.85

% p.a

for 6 months

Real Time Rating™

4.48

/ 5
Go to site

special

Receive a loyalty bonus

Winner of Best Term Deposit 6 Month 50k, RateCity Gold Awards 2022

Company
Product

Term Deposit

Real Time Rating™

4.24

/ 5
Max rate

2.60

% p.a

for 60 months

Min. deposit

$1,000

Interest rate

1.55

% p.a

for 6 months

Real Time Rating™

4.24

/ 5
Go to site
Company
Product

Investment Plus

Real Time Rating™

3.06

/ 5
Max rate

2.30

% p.a

for 24 months

Min. deposit

$1,000

Interest rate

0.50

% p.a

for 6 months

Real Time Rating™

3.06

/ 5
Go to site
Company
Product

Term Deposit

Real Time Rating™

2.32

/ 5
Max rate

1.25

% p.a

for 60 months

Min. deposit

$50,000

Interest rate

0.25

% p.a

for 6 months

Real Time Rating™

2.32

/ 5
Go to site

Read more...

Best five-year term deposits

Company
Product

Personal Term Deposit (At Maturity)

Real Time Rating™

4.48

/ 5

Winner of Best Term Deposit 6 Month 50k, RateCity Gold Awards 2022

Max rate

4.00

% p.a

for 60 months

Min. deposit

$1,000

Interest rate

1.85

% p.a

for 6 months

Real Time Rating™

4.48

/ 5
Go to site

special

Receive a loyalty bonus

Winner of Best Term Deposit 6 Month 50k, RateCity Gold Awards 2022

Company
Product

Term Deposit (At Maturity)

Real Time Rating™

3.77

/ 5
Max rate

2.00

% p.a

for 12 months

Min. deposit

$5,000

Interest rate

1.10

% p.a

for 6 months

Real Time Rating™

3.77

/ 5
Go to site
Company
Product

Term Deposit

Real Time Rating™

4.24

/ 5
Max rate

2.60

% p.a

for 60 months

Min. deposit

$1,000

Interest rate

1.55

% p.a

for 6 months

Real Time Rating™

4.24

/ 5
Go to site
Company
Product

Term Deposit

Real Time Rating™

2.32

/ 5
Max rate

1.25

% p.a

for 60 months

Min. deposit

$50,000

Interest rate

0.25

% p.a

for 6 months

Real Time Rating™

2.32

/ 5
Go to site
Company
Product

Term Deposit

Real Time Rating™

3.10

/ 5
Max rate

1.50

% p.a

for 48 months

Min. deposit

$250,000

Interest rate

0.55

% p.a

for 6 months

Real Time Rating™

3.10

/ 5
Go to site

Read more...

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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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