Smaller lenders are offering the highest interest rates for three-month term deposits, new research has found.
A RateCity analysis of the term deposit market has found that Bank of Sydney and UBank lead the way, with interest rates of 2.70 per cent (see tables below).
However, investors would need to deposit significant amounts of money to earn any meaningful interest.
Investors would earn $6.75 of interest on a $1,000 term deposit, $33.75 on a $5,000 term deposit and $67.50 on a $10,000 term deposit.
Arab Bank Australia, Macquarie Bank, ME Bank, MyState, Qudos Bank and The Rock are also offering some of the highest three-month term deposit rates in Australia right now.
$1,000 for 3 months
| Lender | Interest rate | Final total |
|---|---|---|
| Bank of Sydney | 2.70% | $1,006.75 |
| UBank | 2.70% | $1,006.75 |
| ME Bank | 2.50% | $1,006.25 |
| Macquarie Bank | 2.45% | $1,006.12 |
| Arab Bank Australia | 2.40% | $1,006.00 |
$5,000 for 3 months
| Lender | Interest rate | Final total |
|---|---|---|
| Bank of Sydney | 2.70% | $5,033.75 |
| UBank | 2.70% | $5,033.75 |
| ME Bank | 2.50% | $5,031.25 |
| MyState | 2.50% | $5,031.25 |
| The Rock | 2.50% | $5,031.25 |
$10,000 for 3 months
| Lender | Interest rate | Final total |
|---|---|---|
| Bank of Sydney | 2.70% | $10,067.50 |
| UBank | 2.70% | $10,067.50 |
| ME Bank | 2.50% | $10,062.50 |
| MyState | 2.50% | $10,062.50 |
| The Rock | 2.50% | $10,062.50 |
| Qudos Bank | 2.50% | $10,062.50 |
