A term deposit is a particular kind of savings account. It involves depositing a fixed sum of money for a nominated length of time, in return for a fixed interest rate.
The best term deposit interest rates change regularly – at least as often as when the Reserve Bank of Australia (RBA) changes the cash rate, and in fact more often.
If you want to find out the best term deposit interest rates, you should compare rates online regularly. If you're looking for your first or a new term deposit, start by estimating the amount of money you can deposit, and the length of time you're willing to leave the money untouched. Remember, there are generally big penalties applied for withdrawing money before the end of your term, so you won't get the best term deposit interest rates unless you're able to leave the money for the full term.
If you've got a term deposit, make sure you go online to look for the best term deposit interest rates a few weeks before the term expires. If you don't, the term deposit will 'rollover' generally to a lower rate. The best term deposit interest doesn't automatically follow from one term to the other, so read the terms and conditions on your current term deposit to see what happens at the end of your term.
Term deposits aren't for everyone. If you need ready access to your cash, then an online savings account is probably a better option. But if you can 'park' your cash, then the best term deposit interest rates can be very attractive.
The table below displays some of today's highest interest rates for 1 year term deposits.