Challenger banks and credit unions are currently offering some of the highest interest rates in Australia for one-year term deposits.
At the end of investment period, the $5,000 one-year term deposit would grow to $5,145 (see table below).
Australia annual inflation rate is 1.90 per cent, so investors will get a minimal after-inflation return even if they choose a one-year term deposit with the highest interest rate.
|Lender||Interest rate||Final total|
|Teachers Mutual Bank||2.90%||$5,145|
|G&C Mutual Bank||2.75%||$5,137.50|
|People’s Choice Credit Union||2.70%||$5,135|
Please note that the highest-rate one-year term deposit won’t necessarily be the best term deposit for your situation.