Where can Australians put their record-level savings? Some of the top-rated term deposits in May 2024

Australians are reportedly saving record amounts of money, according to recently released statistics. If you want to put part of your savings into a term deposit, it’s worth comparing your options to help ensure you’re selecting an option that will suit your needs.

According to the data from the Australian Prudential Regulation Authority (APRA), Australians deposited more than $8.2 million into term deposits, transaction accounts, mortgage offset accounts and savings accounts in March 2024. This brings Australia’s total household deposits to $1.47 trillion; almost $200 billion more than before the start of the cash rate hikes two years ago.

Putting some of your available savings into a term deposit can be an option to help protect your wealth and earn interest income. Money in a term deposit is guaranteed by the Australian government up to $250,000 per person per Authorised Deposit-taking Institution (ADI) – in the unlikely scenario that your bank was to go out of business, you should be able to claim your money back. And because you agree to deposit this money for a pre-set term, and can’t withdraw it early without providing a month’s advance notice, it’s not as easy to succumb to the temptation to spend your cash on a whim.

Because term deposit interest rates are fixed in advance, it’s easy to calculate the interest returns you’ll receive on the money you deposit. These returns may be more reliable and consistent than those on some other investments. Of course, it’s important to note that many term deposits pay simple interest, rather than the compound interest more often used with savings accounts, so you may not be able to easily grow your wealth over time.

Before you invest part of your savings into a term deposit, it’s important to compare your options and make sure you’re making the best choice for your needs. RateCity’s Real Time Ratings™ can help you find the value of different term deposits at a glance, based on their interest and flexibility. The top-rated term deposits on the RateCity Term Deposit Leaderboards may also become eligible for a RateCity Gold Award.  

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